Part 2/10:
When the pandemic hit in early 2020, Congress swiftly passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which included provisions for federal relief loans to small businesses struggling to stay afloat. These loans, intended to cover payroll, rent, and other essential business expenses, were designed with oversight to prevent abuse, but lax regulations led to some unscrupulous applications.
Applicants had to prove they owned legitimate businesses, with details like employee counts and revenue. However, some resorted to outright falsification, claiming nonexistent businesses or inflating income. The ultimate goal was to get quick cash, either to sustain their actual enterprises or, as in this case, for personal "investments"—sometimes far removed from the intended use.