Carbondale Reporter

Chicago City Hall Inspector General Deborah Witzburg has revealed that more than 1,000 federal COVID-19 relief loans intended for struggling businesses have been obtained by city of Chicago employees. While some of these loans were obtained legitimately, a significant number show signs of potential fraud. The investigation, which has been ongoing for over a year, includes members of the police and fire departments.

The extent of the fraud in Chicago is part of a larger issue of COVID fraud nationwide. A federal watchdog estimates that approximately 17 percent of the $1.2 trillion distributed in various relief programs was obtained fraudulently. Inspector General Witzburg emphasized that the investigation will prioritize individuals in positions of elevated public trust and will pursue disciplinary proceedings either administratively or criminally.

Not only is the Chicago City Hall Inspector General investigating the fraudulent loans obtained by city employees, but other local watchdogs are also involved. Inspectors general overseeing Cook County, the Chicago Housing Authority, and Chicago Public Schools have been looking into potential fraud or violations of personnel rules around ethics and secondary employment.

The Cook County Inspector General released two reports that uncovered instances of federal fraud within the county's Water Reclamation District and health system. In one case, an employee used a loan intended for a hazardous waste freight transportation business for unauthorized purchases. Another employee obtained multiple loans and used them for personal gain, eventually resigning after not cooperating with the investigation.

Additionally, several Cook County employees resigned after being found under investigation for fraudulently obtaining PPP funds. One employee obtained loans totaling over $200,000, while another misused funds for personal expenses. The latter employee has been recommended for termination and inclusion on the ineligible for hire list.

These cases of fraud in Chicago follow a similar trend across the state. Over 170 state employees are currently being investigated for defrauding the federal Paycheck Protection Program. These investigations are still ongoing and are expected to continue for some time.

Furthermore, a performance audit report of the Illinois Department of Employment Security (IDES) revealed that the state overpaid unemployment benefits by a staggering $5.2 billion during the first 18 months of the pandemic. This includes payments made to deceased individuals and incarcerated individuals. The full extent of the overpayments is yet to be determined as investigations continue.

It is clear that the issue of COVID relief fraud is a significant concern in Chicago and throughout the state of Illinois. The investigations being conducted by various watchdogs and inspectors general aim to hold those responsible accountable and ensure that funds intended for struggling businesses are not misused.

To find out more, go to this link: https://reppauljacobs.com/2023/10/27/the-caucus-blog-pandemic-fraud-in-chicago/