Federal investigators have uncovered a massive fraud scheme involving over $330 million in Small Business Administration (SBA) loans incorrectly issued to minors, including a $100,000 loan granted to a 9-month-old infant.

Attorney General Pam Bondi announced the formation of a specialized DOJ task force to investigate what she described as "one of the most disturbing patterns of financial abuse in recent history."

The Department of Government Efficiency (DOGE) discovered the fraud while analyzing SBA disbursement data from 2020-2022, primarily involving COVID-era emergency programs like PPP and EIDL loans. The investigation revealed that basic age verification protocols were bypassed, allowing loans to be approved for legally ineligible minors under age 11.

Key Findings:

• Over $330 million in fraudulent loans issued to minors
• Youngest recipient was 9 months old
• Loans distributed between 2020-2022
• Primary focus on PPP and EIDL programs

The DOJ has initiated subpoenas to financial institutions and third-party processors involved in distributing these funds. Investigators are working to determine whether the fraud resulted from identity theft by adult criminals or systematic failures in the verification process.

In response, DOGE is implementing enhanced age verification systems that will cross-reference applicant information with SSA and DHS databases in real-time. The task force, comprising officials from the FBI, Treasury, and SSA, expects to begin issuing indictments within weeks.

Congressional hearings are scheduled for April to address the broader issues of pandemic relief fund oversight and to implement reforms to federal lending systems. The investigation continues as authorities work to recover misappropriated funds and prevent future fraudulent activities.

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