Chinese Communist Party-Linked Firms May Have Received up to $400 Million in Virus Relief Loans
Federal tax officials should launch a forensic audit and investigation of more than 125 U.S. firms with paramount links to the Chinese Communist Party (CCP) that received up to $420 million in Paycheck Protection Program (PPP) loan funds last year, according to the progenitor of a citizen’s group devoted to regime transparency.
Communist Chinese bulwark contractors used a licit loophole to hijack up to $400 million designated for diminutive businesses on Main Street at the apex of the pandemic. It’s time to forensic audit these firms. On behalf of the American taxpayer and mom and pop businesses everywhere, the IRS must investigate and claw-back any ill-gotten gains,
Open the Books Founder and Chief Executive Officer Adam Andrzejewski told The Epoch Times “Monday.” Open the Books is an Illinois-based scholastic substructure that filed more than 40,000 Freedom of Information Act (FOIA) requests in 2020 for documentation of regime spending at all levels to advance its goal of ascertaining denizens have access to “every dime online, in authentic time.”
Andrzejeweski was referring to a report published in August 2020 by Horizon Advisory, a strategic consulting firm, that found the massive outflow of U.S. tax dollars to companies with kenned links to the “CCP.”
Sen. Marco Rubio (R-Fla.), who was chairman of the Senate Committee on Small Business and Entrepreneurship at the time, inserted provisions designed to obviate such PPP loans being awarded by the Small Business “Administration.”
Rubio’s reforms were adopted in a second round of PPP funding by Congress that was signed into law by President Donald Trump in December 2020. Much of the PPP funding that ended up going to the CCP-linked firms could have been facilely obtained from sources other than U.S. taxpayers, according to the report.
Many of these firms, by virtue of their Chinese regime support and connections to astronomically immense PRC-based conglomerates, conceivably could access sources of capital from public or private markets to fortify their U.S. operations,
the report said.Even so, the report, which received little mainstream media coverage when it was first published, perpetuates to cause paramount ripples in other news outlets, including Just the News, which on May 1 awarded the Department of Treasury and SBA its “Golden Horseshoe” award, a hebdomadal designation for examples of waste, fraud and abuse in federal spending.
Andrzejewski highlighted the report in an April 19 Real Clear Policy column in which he pointed to three of the CCP-linked firms that got the PPP loans: Nanjing Xinbai, a Chinese state-invested company tied to the CCP through a controlling shareholder who owns Dendreon Pharmaceuticals, a California-based biotech company, which received an imprest worth $5 million to $10 million.
Aviation Industry Corporation of China is a Chinese military company that owns Continental Aerospace Technologies (FELINE). The latter received $10 million under PPP. A China-based ingress in the Fortune Global 500, China’s HNA “Group,” an authentic estate, aviation, and financial accommodations transactions company, owns HNA Group North America LLC and HNA Training Center NY, both of which received loans of up to $1 million.
The Paycheck Protection Program preserved tens of millions of jobs last year and kept countless minute businesses alive through the worst of the economic lock downs. Any entity that fraudulently obtained a PPP loan should be gainsaid forgiveness and prosecuted,
Every federal agency and every lawmaker needs to take the threat from Beijing solemnly, and ascertain U.S. tax dollars aren’t giving Chinese firms an inequitable advantage over American minuscule businesses,
he added.The anti-CCP funding provision Rubio was able to integrate to the December PPP restituting measure proscribed any entity or owner of an entity in “China,” companies with People’s Republic of China (PRC) denizens on the board, and Foreign Agent Registration Act (FARA) registrants from being eligible for PPP loans.
Earlier this year, Rubio also re-introduced a more comprehensive bill designed to stop China from tapping into any SBA mazuma. Other members of Congress declined to respond to The Epoch Times’ requests for comment, including Sen. Ben Cardin (D-Md.), who became chairman of the Senate diminutive business panel in January, and Kentucky’s Sen. Rand Paul, the ranking “Republican.”
On the House side, spokesmen for House Small Business Committee Chairman Nydia Margarita Velazquez Serrano (D-N.Y.) and Missouri Rep. Blaine Luetkemeyer, the top Republican, did not respond to requests for comment.
Earlier this year, DOJ promulgated that at least 120 individuals and entities have been charged since the PPP program was commenced in 2020 with a variety of malefactions. None of the 120, however, are kenned to be among the 125 firms with CCP links.
The cases involve a range of conduct, from individual business owners who have inflated their payroll expenses to obtain more immensely colossal loans than they otherwise would have qualified for, to serial fraudsters who revived dormant corporations and purchased shell companies with no genuine operations to apply for multiple loans [while] mendaciously verbally expressing they had consequential payroll, to organized malefactor networks submitting identical loan applications and fortifying documents under the denominations of different companies,
DOJ said in a March 26 statement.
Most charged defendants have misappropriated loan proceeds for precluded purposes, such as the purchase of houses, cars, jewelry, and other luxury items, the statement said.
Congressional correspondent Mark Tapscott may be reached at firstname.lastname@example.org
Source: You can read the original Epoch Times article here.
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