The Paycheck Protection Program (PPP) was designed to keep companies afloat during the coronavirus lockdowns.
Thousands of companies, small and large, have applied for these loans in the past few months.
However, perhaps one particular company shouldn’t have been approved for this assistance…
It’s a Chinese real estate company, which received between $4 million and $10 million loans — all the while being investigated by the FBI.
It appears the company chairman is on the hook for possible bribery, among other charges.
Via The Daily Caller:
The Trump administration loaned between $4 million and $10 million in coronavirus relief funds to a real estate company whose chairman allegedly bribed a Los Angeles city councilman with nearly $260,000 in poker chips, escort services and $600,000 in payments to settle a sexual harassment lawsuit.
The complaint in question doesn’t name the company or the chairman, but we have other details:
It appears the city councilman, Jose Huizar, was arrested on June 23. He was charged with allegedly accepting $1.5 million to help the developers of certain real estate project in L.A.
Where did the money come from? Apparently, they were courtesy of a Chinese billionaire (the unnamed chairman).
And it doesn’t stop there, as the company may have paid for Huizar’s “flights, hotel rooms, spa services, meals, alcohol, prostitution/escort services, and $259,500 in casino gambling chips.”
The situation prompts a few questions:
First, this appears to be a fairly wealthy company, with many wealthy individuals involved. Did it really need PPP loans from the government?
Second, how can a company currently under investigation by the FBI warrant a business loan?
As time goes on, we may have to take a closer look at the businesses that did receive this assistance. Many probably needed it, but others … well, perhaps they abused the system.
Either way, the overall cost of the lockdowns continues to rise. Let’s hope the country recovers faster than anticipated.
- A Chinese real estate company received between $4 million and $10 million in PPP loans.
- The company’s chairman is under investigation by the FBI.
- Incidents like this may prompt a closer look at the businesses applying for PPP loans.
Source: The Daily Caller