From Ashes to Riches (Unearned): The Psychology of Perpetrators in PPP Loan Fraud
The Paycheck Protection Program (PPP) was designed as a lifeline for businesses struggling due to the COVID-19 pandemic. However, it also attracted a host of fraudsters, whose motivations and actions provide a window into the psychology of financial crimes in times of crisis.
Complex Web of Deceit
The PPP fraud cases range from opportunistic individuals to sophisticated criminal networks. For instance, Robert Benlevi of Encino, California, was convicted for a $27 million PPP fraud scheme. He submitted 27 applications on behalf of his companies, claiming nonexistent employees and payroll, ultimately using the funds for personal expenses, including luxury apartment rent.
In North Carolina, three men were sentenced for fraudulently seeking over $2.7 million in PPP loans. They joine...