ATLANTA — The federal government has added a new measure to spot fraud as it takes applications for a new round of Paycheck Protection Program (PPP) loans.
This comes as federal prosecutors here in Georgia continue to make new arrests for PPP fraud.
A new federal indictment lists 16 businesses, most in Gwinnett County, where prosecutors allege Yun Jae Moon, who also goes by the names Jake and Alex Moon, fraudulently filed for PPP loans, totaling millions.
Channel 2 investigative reporter Justin Gray went to a Suwanee home listed as the site of two of those businesses.
The man who answered the door and identified himself as Jae Kim said he’s never heard of the companies or Yun Jae Moon.
But he is listed on the Georgia Secretary of State’s site as the CEO, CFO and secretary of one of the businesses.
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According to Duluth neighbors, a vacant space is said to be a coffee shop, but Moon applied for a PPP loan for a construction business there.
President Joe Biden’s administration is issuing a new round of PPP loans.
Terri Denison, the Georgia director of the Small Business Administration, said they have added a new layer of fraud defense.
In Round 1, banks handled background checks. Now, the SBA follows up with its own research for each and every loan.
“Just to have another level of due diligence and making sure as best we can that these are legitimate businesses,” Denison said.
The Justice Department also continues to go after people who have allegedly defrauded PPP, like Moon.
We showed you just a month ago another indictment for another Gwinnett County man, Tabronx Smith, and four co-conspirators also for PPP fraud.
“We’ve always had a great working relationship with the U.S. Attorney’s Office in terms of addressing and following through on consequences of these actions,” Denison said.
Moon is in federal custody pending trial. He is also facing deportation.