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We found significant income discrepancies related to claims for low-income housing and more than $860 million in pandemic small business assistance awards.
The PRAC’s data analytics team can detect red flags no single agency would see on its own.
We compared data of applicants who received benefits from the Department of Housing and Urban Development (HUD) and also qualified for Paycheck Protection Program (PPP) loans from the Small Business Administration (SBA) and found that some may have deliberately misrepresented their incomes. In over 40,000 cases, applicants represented significantly higher income to SBA than to HUD.
These anomalies indicated potential fraud in more than $860 million in
PPP loans.
One of those mismatches uncovered a complex criminal conspiracy involving fake businesses, over 100 bank accounts, and misuse of housing benefits. Six people were convicted and ordered to repay over $1.6 million. The two main defendants each received 33 months in prison followed by three years’ supervised probation.
Why it matters
Every dollar fraudsters steal using schemes like income misrepresentation takes benefits away from the people the program was intended to help. By using advanced data analytics to detect red flags and prevent fraud and other types of improper payments, the PRAC helps federal agencies learn from the past and prepare for what’s next. These insights will guide how future emergency aid is designed and distributed—ensuring funds reached the right people, at the right time.
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