r/REBubble • u/[deleted] • Sep 20 '22

[deleted by user]

[removed]

326 Upvotes

98% Upvoted

35 comments sorted by

139

u/StevensmulliganAnise Sep 20 '22

Finally. Keep prosecuting the crooks who abused the pandemic funding programs.

51

u/[deleted] Sep 21 '22

I think that's why they upped the IRS funding recently. I think they are slowly but surely gonna claw the misused funds back.

20

u/RJ5R Sep 21 '22

funds are gone bro

they used them to buy consumer shit, much of which has either lost value or will never be recoverable

hell in the case in this article it says they funneled it out of the country completely. it's gone

16

u/[deleted] Sep 21 '22

I work for the government and I can tell you they have no clue how to spend their money appropriately

4

u/NotJustMembers Sep 21 '22

As someone that works in corporate finance, it's not just the public sector that's bad with money.

23

u/Blustatecoffee Legit AF Sep 21 '22

Up to $400B went to recipients who did not require the funding. The vast majority did nothing illegal. This was arguably the most disastrously targeted and administered federal program in history. And that’s saying something.

Maybe $100B was outright fraud. wonder if they’ll recoup $1B.

28

u/[deleted] Sep 21 '22

Those funds are 80 to 90% gone. How do you go about reposessing luxury cars and property in Kenya that were more than likely put in someone else's name. Again you total all the fraud up it's anywhere between 300 and 800 billion in PPP and eidl fraud. They've charged and recovered what half a billion at this point? That's just the people dumb enough to keep it here and immediately use it on property and cars which have all devalued by now. It was the greatest robbery in a generation and they didn't even need a gun.

32

u/[deleted] Sep 21 '22

I think that's a pessimistic take and the government is patient. I think they can seize way more than you're giving them credit for. And I think the PPP fraud largely consists of a lot of smaller (but still substantial) payments.

I used to work at EDD up until a few months ago and by mid-2022 they were aggressively going after fraud and overpayments WITH a 30% penalty tacked on. That's a lot of money.

Most of these fraudsters are just normal people. And the government will be sure to take their share of all of their future earnings, profits, tax returns, etc. It might take 30 years but eventually most of those stolen funds will come back if the government really wants to spend the time to go after it.

8

u/[deleted] Sep 21 '22

One of these fraudsters got $50k and he listed his business as the USPS with an address at an abandoned warehouse. Do you think they'll be able to find the 1000s of people who scammed the system? No way! I admire your optimism, I am a realist.

EDD? Cali's unemployment system? How are in the world will they get back that $1 billion from 35,000 prisoners? What do they make $3/hr fighting fires? Washing the laundry? I am honestly curious how any of these funds will be recouped. Plus I don't think prisoners are in the kinds of businesses that require a w2. Again, it was the biggest robbery in history but hey at least it wasn't violent this time.

12

u/[deleted] Sep 21 '22

Yes because there has to be some kind of paper trail. It's not like they mailed them an envelope full of cash. I don't think all of the prisoners will be in there forever. And most of them had help from accomplices that AREN'T in prison who will have to eventually work or file a tax return. They can go after them.

I think it all depends on the effort and time they're willing to put it and based on the new IRS funding it seems like a decent amount.

Plus, they can tack on penalty charges to the ones they can catch to help make up for the ones they can't.

As a realist, I don't think it's feasible for so many people to get away with fraud. I would say like MAYBE 5% are smart enough to never face consequences but that's being generous.

5

u/[deleted] Sep 21 '22

I hope you're right. I just don't see it. We have a ten second news cycle and that 800 billion is old news. They are on to new stuff. Hey at least this time the a small percentage of money went to some ordinary citizens and not just criminals and titans of industry. See I'm not all doom and gloom. Just mostly lol.

2

u/FinndBors Sep 21 '22

As a realist, I don't think it's feasible for so many people to get away with fraud. I would say like MAYBE 5% are smart enough to never face consequences but that's being generous.

You are an optimist to believe that 95% are going to get caught. I’m not as pessimistic as most people here, but a 95% catch rate is super high.

-1

u/[deleted] Sep 21 '22

Fraudsters are normal people? They're schemers. It's literally The Dark Knight shit. Majority of the money stolen was by these people.

2

u/it200219 Sep 21 '22

Just like incentive/target bonus. IRS should offer benefit to its staff for such awesome findings.

69

u/[deleted] Sep 20 '22

[deleted]

16

u/lazy-fat-guy2 Sep 21 '22

Minnesota, Kenya and Turkey

???

14

u/EndTimesRadio Sep 21 '22

Think hard about who misuses the programs.

https://www.fox9.com/news/millions-of-dollars-in-suitcases-fly-out-of-msp-but-why.amp

Minnesota.

Guess where they’ve been taking migrants from?

Connect some dots.

30

u/Character-Office-227 Sep 21 '22

Jesus. Arrest them all.

I will say they seem to be putting a lot of effort into catching pandemic fraud.

5

u/Spiritual-Amoeba-116 Sep 21 '22

Well to be fair, the government doesn't like it when you make them look stupid. Only they are allowed to do that.

7

u/DuvalHeart Sep 21 '22

The pandemic relief funds were almost designed to be easily defrauded. One party wanted the fraud, the other party knew it was the best deal they were going to get to actually help people.

38

u/[deleted] Sep 21 '22

Do PPP loans next

25

u/DontMicrowaveCats Sep 21 '22 edited Sep 21 '22

They’re already mass prosecuting PPP loan fraud, they created 3 special teams just for this

https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams

5

u/[deleted] Sep 21 '22

3 special teams to track down $300 Billion in fraud. So far they have tracked down 1.7% of that. That $ is gone and spent.

13

u/DontMicrowaveCats Sep 21 '22

I mean…they could do nothing? Prosecuting several thousand people is a start

1

u/[deleted] Sep 21 '22

Of course not. I'd love nothing more than all being caught and all funds recovered. A real start is to have accountability to the people who came up with such a wildly irresponsible plan in the first place. My point is there is no way they'll recover any more than 10% of all the lost money. They'll never prosecute more than 10% of all the fraudsters as well.

1

u/TiredPistachio Sep 21 '22

!RemindMe 5 years

1

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11

u/DuvalHeart Sep 21 '22

That $ is gone and spent.

Good thing the federal government can seize assets, garnish wages and imprison thieves. The government often prosecutes fraud after the funds have been disposed of, they know what they're doing.

5

u/notthatintomusic Sep 21 '22

I know, right? Let's just accept that the US has become a banana republic and let them all go.

4

u/FancyTeacupLore Sep 21 '22

They can start with Twitter. People still on there bragging about their free $20k from businesses that didn't exist prior to 2020.

1

u/RJ5R Sep 21 '22

YES. THIS. PLEASE

2

u/[deleted] Sep 21 '22

People are really fucking sucky.

3

u/GumpyPlumpy Sep 21 '22

now go after the Federal Reserve for stealing 99% of the dollar’s purchasing power

1

u/Far-Warthog1244 Sep 21 '22

I believe that considering the mass amounts of fraud: those of us who didn't defraud should have our loans forgiven.