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  • Writer's pictureAmi Kassar

AmiSight 2/17: Yes, I Sound Like a Broken Record

I have been saying for weeks now how the government will start making examples out of people who used relief funds inappropriately, and it looks like fraudsters are finally beginning to feel the heat.

A recent article reported that the federal government has prioritized cracking down on fraud that occurred in relief programs during the pandemic. It is estimated that around $90 billion in fraudulent funds were disbursed. SBA Inspector General Mike Ware said that by late December 2021, 366 indictments, 294 arrests, and 142 convictions had been recorded for a total of more than $460 million. There are many more ongoing audits and probes in the works.

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Rebecca Schultz
Rebecca Schultz
Feb 17, 2022

For those that read this post and think they are safe from tripping any audit alarms, I wanted to share a story that expands this concern. I was working with a business owner expanding his medical practice yesterday. He had been negotiating the purchase of another physician's practice. In the midst of my financial review, I was able to identify where the seller may have misused SBA disaster funds. Like Ami said, this fraud conversation is just getting started. If you are looking at business acquisitions and mergers in the future, you need to slow down and ask questions about possible misuse of disaster funds. In my client's case, he was able to see the seller in a new light…

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