Operation No Doze Targets COVID Relief Fraud in Oregon
Federal authorities launched “Operation No Doze” on Wednesday, targeting an estimated $1.2 billion in COVID-19 relief funds they say was fraudulently acquired, KPTV reported. The joint enforcement effort, spearheaded by the U.S. Attorney’s Office for the District of Oregon and the U.S. Small Business Administration, aims to claw back millions in pandemic-era loans originally meant to keep struggling storefronts afloat.
“Pandemic era relief programs were created to help small businesses survive, not to provide a payday for fraudsters,” said William Kirk, Inspector General for the U.S. Small Business Administration.
Since June, the Department of Justice has recovered nearly $16 million in misused pandemic relief funds across Oregon. Investigators have already secured several arrests and indictments against individuals accused of redirecting emergency assistance for personal or unauthorized corporate use. Federal officials estimate that roughly 2,300 people misused COVID relief funding in the state alone, a figure expected to climb significantly before the end of the year.
“Small businesses are our nation’s biggest job creators. They’re also among our biggest taxpayers. And like every taxpayer, they deserve the right to know their money is not being siphoned away by fraudsters,” an SBA official noted.
Today, @DOJFraudDiv along with the @SBAgov and @SBAOIG, as part of a Heartland Fraud Surge announced the results of Operation No Doze, a surge of criminal enforcement actions targeting fraud in SBA’s small business COVID-era loan programs.Together, this targeted surge resulted… pic.twitter.com/BbBDEIynzC
Among those caught in the crosshairs is Ramzy Peter Hattar, owner of the River Pig Saloon in Portland’s Pearl District. Federal officials state Hattar used emergency relief funds to prop up an entirely separate business in Eugene that had already closed its doors before the pandemic began. Investigators allege he walked away with nearly $350,000 in relief funding. Hattar did not respond to a previous request for comment.
Investigators delivered a direct warning to others who may have illegally tapped into the emergency funds over the past few years. “We know who you are, we know where you live,” Kirk said. “Do not mistake the passage of time for lack of interest or commitment. Accountability is coming.”
More on Operation No Doze
The historic results of Operation No Doze announced yesterday are thanks to @POTUS and @VP’s leadership in making the fight against fraud a top priority.During the Heartland Summer Surge, @DOJFraudDiv, @SBAgov, 44 U.S. Attorney’s Offices, 20 federal and state investigative… pic.twitter.com/Iij4SzMBYb