5 Cook County workers, 4 MWRD employees accused of PPP fraud
CHICAGO (CBS) -- A new report from Cook County's inspector general outlines fraud allegations against five county employees and four employees at the Metropolitan Water Reclamation District accused of fraudulently obtaining Paycheck Protection Program loans meant to help small businesses during the pandemic.
The office's quarterly report says one Cook County Health employee filed false statements about a private business she ran to obtain more than $82,000 in PPP loans, and then used the money on personal expenses such as car payments, rent, and groceries.
Another CCH employee got nearly $40,000 in PPP Loans after lying about a home care aide business, and using the money for personal expenses such as car payments, auto insurance loans, utility bills, and day-to-day expense.
A third CCH employee also got nearly $40,000 in PPP loans after making false claims about her private business, and spending the money on home renovations and a new garage.
A county Facilities Management employee got more than $41,000 in PPP loans after claiming to run a business that generated $117,600 in sales, even though she made only $1,000 in sales. She is accused of using the PPP loans for personal expenses like cash withdrawals, credit card payments, jewelry, furniture, Lottery tickets, and a new home.
A County Clerk's office employee received nearly $36,000 in PPP loans after falsely stating she was going to use it on payroll costs for a private business, then used the money for personal credit cards, mortgage payments, back taxes, and her daughter's wedding.
A MWRD police officer got more than $20,000 in PPP loans for a long-haul hazardous waste freight transportation business, and spent the money on unauthorized purchases. During the investigation, she claimed "the funds that mysteriously arrived in her bank account were a gift from an acquaintance,"
"The subject employee's story is not credible for numerous reasons including that personal information such as her social security number and banking information was used to obtain the loan. It is also unlikely that a trained law enforcement officer would believe that a mere acquaintance would simply give her $20,833 or that she would not be suspicious about how he obtained such a large sum of money," the report states.
The officer also is accused of violating the MWRD ethics ordinance for failing to inform supervisors of her side business.
Another MWRD employee is accused of making false claims about a media production business to get more than $20,000 in PPP loans, with some of the fraud occurring while he was on the job, and using the money on personal expenses.
A third MWRD employee is accused of obtaining $15,625 in PPP loans by making false claims about her side job as an Instacart drive, and using the money to pay off personal debt, day-to-day expenses, and an international flight.
A fourth MWRD employee is accused of obtaining $9,375 in PPP loans by falsifying how much money she made from her side job as an accountant, while stating on a bankruptcy filing that she didn't own a personal business.
The inspector general recommended all of the employees be fired. One already has resigned.
While the MWRD is a separate government body from Cook County government, they have an agreement with the county's inspector general to handle investigations into employee wrongdoing.
