Did they really think they would get away with it?

Investment Analysis Clubs Macro Economic Trends and Risks
1

Well obviously they did, but why?

2

It appears the odds were in their favor.

“Hundreds of people have been charged with the theft of more than $830 million in COVID-19 emergency aid…”

OK, round that up to $1 billion. Then we read:

“They potentially plundered more than $280 billion in federal COVID-19 aid…”

1/280 ==> 99.6% success rate

DB2

3

Like the person who fell of a tall building was heard to say on the way down, “So far so good.”

1 Like
4

But even if the Feds increase the apprehensions by a factor of ten, over 96% of the money is still stolen. Very good odds, I would think, if you’re into that sort of crime.

DB2

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5

The punishment is not for the crime but for being dumb enough to get caught. At least that was supposedly the Spartan mantra.

The Captain

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6

I wonder what the statute of limitations is on this. The feds may have years to keep looking. So far they caught the low hanging fruit. Those who did not hide well. Used authentic ids etc rather than fakes. Or stayed in the US. Rather than convert to bitcoin and move some place exotic.

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The latest GAO report details those ongoing efforts, including the nearly 1,400 individuals who have been found guilty of fraud connected to COVID-19 relief efforts. As of June, the GAO reported, there had been 1,051 sentences handed down in those cases…

There are more than 500 other cases still pending in the court system, according to the GAO. Congress has extended the statute of limitations on COVID-related fraud to 10 years…

The SBA decided earlier this year not to pursue collections actions against individuals who haven’t repaid EIDL loans of $100,000 or less…

For example, the GAO reported in May that states had identified about $55.8 billion in fraudulent and nonfraudulent unemployment overpayments that occurred between March 2020 and March 2023. Of that, about $6.8 billion had been recovered.

DB2

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8

Must not “burden” the JCs. But former college students? No way! Pay that college loan!

Steve

4 Likes
9

Are you of the opinion they shouldn’t repay the loans they took out?

DB2

10

Only if the “JCs” who defrauded the government get off scott free.

Steve

4 Likes