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After being charged and but before being sentenced, Schulte submitted multiple fraudulent applications for Paycheck Protection Program funds, money that was intended to help businesses stay afloat in the wake of the COVID pandemic.
After obtaining $1,365,000 in forgivable Paycheck Protection Program loan funds intended for COVID-19 relief for their film production and catering companies, the couple then purchased a condo in Hawaii and two SUVs.
Source: https://calcoastnews.com/2023/06/arroyo-grande-couple-used-ppp-money-to-buy-condo-lose-home/
Deborah Witzburg, City Hall’s inspector general, has also said that her office still is investigating whether any city employees also bilked the so-called Paycheck Protection Program.
Source: https://www.dailycamera.com/2023/06/25/views-from-the-nations-press-12/
Hearkening back to his past public policy punditry, Laffey argued that he correctly opposed the COVID-19 lockdowns and sounded the alarms early on about how pandemic relief, such as the Paycheck Protection Program, could become a bonanza for fraud.
Separately, City Hall Inspector General Deborah Witzburg’s investigation of COVID relief Paycheck Protection Program fraud “is a large-scale undertaking” that could lead to criminal charges.
The latest case follows his guilty plea last year to Covid relief fraud chargesKao obtained more than $12.8 million in Paycheck Protection Program loans by submitting numbers that falsely inflated his payroll.
"These defendants allegedly conspired to steal tens of millions of dollars from the Paycheck Protection Program – funds which could have helped legitimate businesses pay their bills and keep their employees afloat."
When the Paycheck Protection Program launched during the pandemic shutdowns of spring 2020, it immediately became a chaotic free-for-all.