A USAID contracting officer, Yusuf Akoll, has reportedly been charged with fraudulently securing coronavirus relief funds by creating a fake business.
According to federal prosecutors, Akoll, who served as a Senior Procurement Contract Specialist at the U.S. Agency for International Development, allegedly made false statements to obtain two Paycheck Protection Program (PPP) loans totaling approximately $16,666.
Akoll registered a company named Naagode Consulting LLC in Virginia in November 2020 and applied for PPP loans, claiming it was operational since January 2020.
To qualify, he falsely stated that the company had $40,000 in income in 2019, despite it having no revenue. These misleading claims were made between March and August 2021.
Prosecutors indicated that his actions highlighted significant lapses in the government’s vetting process during the pandemic.
The Small Business Administration (SBA) failed to verify basic information, such as checking state corporation records to confirm the company’s establishment date or reviewing tax returns to validate income claims.
This negligence reflects a broader issue regarding the mismanagement of pandemic relief funds.
The Biden administration has faced criticism for its handling of the pandemic relief program, particularly regarding the “pay and chase” model, which allowed for minimal vetting of claims.
In 2023, the administration decided not to pursue loans under $100,000 that were required to be repaid, a decision that some argue encourages further fraudulent claims.
Senator Joni Ernst emphasized the importance of holding fraudsters accountable, as reports indicate that criminals may have stolen up to $1 trillion in COVID relief funds, with much of that money potentially going overseas.
The ongoing investigations into these fraudulent activities underscore the need for better oversight and accountability in future relief efforts.
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