Watch CBS News

JPMorgan Chase Fires Employees Over Alleged COVID-19 Relief Fraud

DALLAS (CBSDFW.COM) - Federal programs aimed at helping small businesses during the health crisis continue to be plagued with allegations of fraud.

A person familiar with the matter told CBS News, JPMorgan Chase has fired several employees for allegedly pocketing funds from the Small Business Association's Economic Injury Disaster Loan program.

The nation's biggest bank uncovered evidence that some of its customers and employees broke federal rules when obtaining and distributing billions of dollars in government loans.

In recent months, the Justice Department has charged dozens of people with trying the steal from the federal Paycheck Protection Program that was designed to keep small businesses afloat during the coronavirus pandemic.

Meanwhile, some of the smallest of small businesses failed to receive any relief from the program that was supposed to help them.

"Chofo" Bianchi, the owner of the Empanada Cookhouse in downtown Dallas that employees six people, said his PPP loan application was denied by the bank.

"We were never told why we didn't meet the criteria. It just feels like something in broken in the system," said Bianchi. "But we are just going to keep our heads up and fight for what we believe in."

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.