WASHINGTON (AVC News) — The Justice Department, Small Business Administration and SBA Office of Inspector General announced more than 160 criminal enforcement actions involving approximately $245 million in intended losses from alleged fraud in COVID-era small business loan programs.
The enforcement activity, conducted from June 12 through Sept. 1 as part of Operation No Doze, included nearly 80 newly charged defendants accused of exploiting SBA loan programs during the COVID-19 pandemic. Those cases involved approximately $100 million in intended losses, according to the Justice Department.
Another approximately 43 defendants pleaded guilty to SBA-related COVID fraud involving about $44 million in intended losses, while approximately 40 defendants were sentenced in cases involving nearly $100 million in intended losses.
Ohio’s two federal judicial districts involved in the enforcement effort accounted for more than $1.8 million in intended losses. The Northern District of Ohio reported $1,381,033 in intended losses, while the Southern District of Ohio reported $440,428.
The enforcement surge involved prosecutors from more than 40 U.S. Attorney’s Offices and assistance from 20 federal and state investigative agencies. The Northern and Southern districts of Ohio were among the participating U.S. Attorney’s Offices.
The cases involved allegations including fabricated businesses, false payroll and revenue information, identity theft and concealed foreign connections on loan applications.
The DOJ said the effort also is being accompanied by expanded cooperation between federal and state officials. Three new federal-state agreements were announced with officials in Missouri, Nebraska and Kansas to strengthen fraud detection, information sharing and enforcement efforts.
The SBA also said it has identified 870,000 suspended borrowers connected to $39 billion in suspected fraudulent Paycheck Protection Program and COVID Economic Injury Disaster Loan activity. The agency said demand letters are being sent to suspected fraudsters seeking repayment, with unpaid debts potentially subject to Treasury collections and federal law enforcement action.
The Justice Department said Operation No Doze is part of a broader effort by its National Fraud Enforcement Division to investigate and prosecute fraud involving federal programs.
Last Updated on September 15, 2026 by AVC News
