Federal officials announce $245 million COVID-19 loan fraud crackdown
FOX23 News at 9 p.m.
KANSAS CITY, Mo., (KBSI) — Federal officials announced an enforcement effort targeting more than 160 people accused of involvement in approximately $245 million in attempted fraud involving COVID-19 relief programs.
The Justice Department’s National Fraud Enforcement Division, the U.S. Small Business Administration and the SBA Office of Inspector General announced the results of Operation No Doze during the 2026 Heartland Fraud Partnership Summit in Kansas City.
The operation targeted alleged fraud involving the Paycheck Protection Program and Economic Injury Disaster Loan program.
Officials said nearly 80 defendants accused of causing approximately $100 million in intended losses were charged with felonies from June 12 through Sept. 1. About 43 defendants pleaded guilty in cases involving approximately $44 million in intended losses, while roughly 40 others were sentenced in cases involving nearly $100 million.
SBA Administrator Kelly Loeffler said the agency has suspended about 870,000 borrowers connected to $39 billion in suspected fraudulent activity involving the two programs.
The summit brought together more than 25 federal and state officials, including representatives from six U.S. attorney’s offices, three state attorneys general’s offices, three state financial offices, three secretaries of state and three federal law enforcement agencies.
Vice President JD Vance, FBI Director Kash Patel and Deputy Attorney General Todd Blanche attended the summit. Missouri officials included Gov. Mike Kehoe, Attorney General Catherine Hanaway, Secretary of State Denny Hoskins and State Auditor Scott Fitzpatrick.
Officials also announced new federal-state cooperation agreements with the Missouri secretary of state, the Nebraska state treasurer and the Kansas state treasurer.
One Missouri case highlighted by the Justice Department involves Jamie Gray, who is accused of seeking more than $55.9 million through fraudulent loan applications. Prosecutors allege Gray applied for relief on behalf of dozens of businesses, most of which were not operating by the program’s eligibility deadline.
Gray faces wire fraud and money laundering charges. The charges are allegations, and Gray is presumed innocent unless proven guilty in court.
More information is available through the Department of Justice | Homepage | United States Department of Justice).
