With a multi-billion-dollar fraud uncovered in Minnesota, what does this mean for banks?
A massive welfare fraud scheme has been uncovered in Minnesota. The amount of the fraud is estimated at $9 billion but could end up being much higher. Many people have been implicated and investigations have begun. The U.S. Treasury began taking actions back in December focusing on money services businesses (MSBs). The SBA then announced a halt on $5.5 million in federal payments to Minnesota and will begin reviewing all SBA loans and PPP loans made in the state since 2020. The focus of prosecutors is around the policy ‘Minnesota Nice’ and how billions may have been siphoned through social…
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