A report released by the Office of the Inspector General (OIG) has brought to light the case of a Baltimore County corrections officer who fraudulently claimed nearly $20,000 in federal loans. According to FOX Baltimore, the officer, employed by the Baltimore County Department of Corrections, falsely represented to the Small Business Administration (SBA) that he was earning an average of $7,855.58 per month in the tax service industry. However, the investigation found no such earnings; from 2019 through 2021, his only related activity was driving part-time for Lyft and Uber, with his Lyft account being reactivated just months before the OIG interviewed him.
It appears that the PPP loan was granted to the officer after an interaction with a Nigerian man, who may have been from Texas or California, and who allegedly assisted him in applying for the loan for a fee contingent on its success, as stated in the CBS News Baltimore report. This middleman facilitated contact with the "Loan Filer," leading to the officer receiving $19,638. It's interesting because the officer's account closely resembles another case involving a Baltimore County Police Officer.
The OIG's report disclosed on April 25, that while the corrections officer claimed to be providing taxi services since 2016, his time as a Lyft driver was short-lived, plagued by poor reviews regarding the condition of his vehicle, thus he was fired and later took up with Uber in September 2018 said he continued driving for Uber up to a few weeks before the OIG interview, he admitted to having no earnings from Lyft during this time. The officer referred to his ride-share activity as a "side hustle" and, despite the discrepancies, did not believe he did anything wrong by accepting the loan.
In further details provided during the OIG interview, the officer mentioned his connection to a company involved in purchasing vehicles to ship to Nigeria and hinted that the loan funds were used to cover credit card expenses incurred by related business activities, including vehicle purchases at auctions, hiring tow trucks, and paying for shipping costs as he stated, as per CBS News Baltimore. The loan was forgiven even before any repayments were made, a decision by the federal government coming before the insights revealed by the ongoing investigation, thus raising concerns about the oversight mechanisms of the Paycheck Protection Program.
As a response to the findings, the Baltimore County Department of Corrections stated that an internal investigation into the incident is underway. Yet, the OIG is firm in its position that the officer intentionally misrepresented facts and made false statements to secure the PPP loan, intending to refer the case to law enforcement for further action, according to the OIG report.
