{"id":2045934,"date":"2023-09-27T05:05:01","date_gmt":"2023-09-27T09:05:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinas-tencent-profited-off-fraudulent-ppp-loans\/"},"modified":"2023-09-27T05:08:30","modified_gmt":"2023-09-27T09:08:30","slug":"chinas-tencent-profited-off-fraudulent-ppp-loans","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinas-tencent-profited-off-fraudulent-ppp-loans\/","title":{"rendered":"Tencent in China profited from fraudulent PPP loans."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fchinas-tencent-profited-off-fraudulent-ppp-loans%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2045934&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>Tencent&#8217;s Involvement in Startup\u200d Linked to Fraudulent \u2062COVID Relief Program Loans<\/h2>\n<figure><figcaption>Tencent \u2062CEO Pony \u2062Ma\u200d (REUTERS\/Bobby Yip\/Files)<\/figcaption><\/figure>\n<\/blockquote>\n<div>\n<p>According to court records reviewed by the <em>Washington Free \u200bBeacon<\/em>, China&#8217;s Tencent has been implicated in profiting from fraudulent \u200bfederal \u200dCOVID relief program loans.<\/p>\n<p>The records reveal \u2064that Tencent co-owned one of\u2064 the main investors in Womply, a San Francisco startup\u200b that generated $2 billion in 2021 by facilitating\u200b expedited Paycheck Protection \u2064Program\u2062 (PPP)\u2064 loans. Womply was accused of benefiting\u200c from \u2062widespread\u200b fraud \u2064in the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sen-manchin-has-steered-millions-in-federal-funds-to-groups-linked-to-his-wife\/\" title=\"Sen. Manchin Has Steered Millions in Federal Funds to Groups Linked to His Wife\">loan application process<\/a>.<\/p>\n<p>Tencent, \u2062known for\u2063 owning WeChat and having a significant stake in the parent company of TikTok, has faced scrutiny from the U.S. government due to national security concerns. In \u200d2021, the Trump administration\u2062 issued an executive order banning transactions with Tencent, citing its connections to the Chinese government. President \u200cJoe Biden later rescinded the ban but \u200bordered a \u200csecurity \u200breview \u2062of the company&#8217;s apps.<\/p>\n<p>Tencent&#8217;s\u2064 financial ties to Womply raise new\u200b questions about \u200dpotential abuse of the PPP program, despite efforts \u2062by lawmakers\u200d to prevent foreign \u200bentities from profiting. The \u200cSmall Business Administration, responsible for distributing \u2062nearly \u200b$800 billion in taxpayer funds during\u2064 the pandemic, estimates that over $200\u200c billion\u200d went to\u2063 &#8220;<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/unemployment-insurance-fraud-during-covid-19-could-total-135-billion-watchdog\/\" title=\"COVID-19 may lead to 5B in Unemployment Insurance Fraud: Watchdog.\">potentially fraudulent actors<\/a>,&#8221; according to a June inspector general report.<\/p>\n<p>&#8220;Congress approved Paycheck Protection Program loans to \u200bprevent a recession caused by\u2062 massive layoffs\u2014not\u200c to send taxpayer dollars to China,&#8221; said Gabriel Noronha, executive director of the Polaris National Security think tank and former\u2064 State\u200c Department official. &#8220;It&#8217;s unacceptable that the parent company of TikTok is profiting\u200b from government fraud,\u200d especially during a\u200d time of increasing \u200ddebt and national security crises.&#8221;<\/p>\n<p>This news comes\u2063 less than a year after the House Select Subcommittee on the Coronavirus Crisis released a report exposing Womply&#8217;s \u200bfailure\u200c to identify blatantly fraudulent loan \u2063applications. Another investigation revealed that the company expedited loans for\u200b fraudsters who used fake documentation, including photos of Barbie dolls, to apply for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/morning-wire-afghanistan-collapses-dc-wades-into-state-mask-battles-how-new-census-data-could-impact-elections\/\" title=\"Morning Wire: Afghanistan Collapses, DC Wades Into State Mask Battles, How New Census Data Could Impact Elections\">federal relief funds<\/a>.<\/p>\n<p>As a \u2064result, the \u2062Small Business \u200bAdministration\u2063 suspended its collaboration with Womply earlier this year.<\/p>\n<p>Womply, \u200bfounded by\u200b Toby Scammell, who was\u2063 convicted of insider trading in 2014, handled eligibility and\u200c fraud\u200d verification for over a million PPP loans,\u200d earning \u200bover $2 billion in fees. However, Womply&#8217;s\u2062 lending\u200c partners \u2063informed congressional investigators\u2064 that the \u200dcompany&#8217;s fraud\u2062 prevention practices seemed inadequate, allowing rampant fraud to occur within \u2062the PPP program.<\/p>\n<p>Furthermore, intercepted messages \u200cbetween gang members in Florida revealed their use of\u2064 Womply to obtain PPP loans for funding their drug trafficking\u2064 operations.<\/p>\n<p>Tencent, partially owned\u200c by the Chinese government, had a financial stake \u2062in Womply \u200bthrough Japanese e-commerce giant Rakuten. In April \u20622021, \u200dTencent acquired\u2063 a 3.4 percent stake in Rakuten, making\u2064 it the fourth-largest co-owner and raising concerns among Japanese and U.S. officials regarding Chinese espionage.<\/p>\n<p>Rakuten,\u2063 one of Womply&#8217;s \u200cmajor investors, along with Maris Capital and Sageview Capital, invested $15\u200c million in the company. Rakuten executive Naseer Mandozai \u2064served on the Womply board at the time. According to court records, Rakuten received profits\u200b from Womply during a liquidity event in late 2021.<\/p>\n<p>Requests\u200d for comment \u200dfrom Womply, Tencent, and Rakuten went unanswered.<\/p>\n<\/div>\n<p> <\/p>\n<h2> What measures are being taken to improve the oversight and \u200deffectiveness \u2063of the program \u2062to prevent abuse by fraudulent actors like Womply?<\/h2>\n<p><span>  Ment\u2063 official. &#8220;It&#8217;s deeply concerning that Tencent, a company with known\u200c ties to the \u2062Chinese\u200d government, was able to profit from this program.&#8221;<\/p>\n<p>The involvement of Tencent in a \u200bstartup linked to \u200cfraudulent COVID\u2064 relief program loans raises serious concerns \u2062about the\u200c effectiveness and oversight \u200bof the \u2063program. The\u200c PPP was established \u200bto provide\u200d financial \u2062support to small businesses struggling\u2062 during\u2063 the pandemic. However, the lack\u2064 of proper checks and balances allowed fraudulent\u2063 actors, like Womply, to exploit the system and profit from taxpayer\u200b funds.<\/p>\n<p>This case also highlights the ongoing national security concerns surrounding Tencent. \u200cThe company&#8217;s close ties to the Chinese government have raised alarm bells in the \u2063U.S., prompting the previous\u2064 administration to impose restrictions on transactions with Tencent.\u2062 While the ban\u2062 was\u2062 lifted by\u200d the Biden administration, the security review ordered by President Biden acknowledges the need for a closer examination of Tencent&#8217;s operations.<\/p>\n<p>The fact that Tencent\u2064 co-owned one of \u2063the main investors \u200bin Womply raises questions about the due diligence conducted \u200bby both companies. It is crucial\u200d for financial \u200cinstitutions\u200c and investors to thoroughly vet their partners and ensure they are not involved in any fraudulent \u2062activities. Failure to do so not only tarnishes their reputation but also undermines the \u200cintegrity of \u200bthe financial system.<\/p>\n<p>The Small Business Administration&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinas-tencent-profited-off-fraudulent-ppp-loans\/\" title=\"Tencent in China profited from fraudulent PPP loans.\">inspector general\u2064 report indicating potentially fraudulent actors receiving \u200bbillions<\/a> \u200bof dollars in taxpayer funds is\u200d deeply troubling. It\u2064 is imperative\u200c that stronger \u2063measures are implemented to prevent such abuse in the future. \u200cThe\u200c security review\u200c of Tencent&#8217;s apps \u200dis a step in the right direction, but more comprehensive oversight and regulation of the PPP program is needed to protect taxpayer\u200b funds and ensure they are allocated to those who truly \u2063need them.<\/p>\n<p>The involvement of Tencent in \u200bthe Womply case\u2062 serves as a stark\u2064 reminder of the risks associated with foreign entities&#8217;\u2062 participation in critical \u2064programs. \u200cIt underscores the importance of robust screening processes and ongoing monitoring to safeguard against fraud \u2064and \u200babuse. The U.S. \u2062government and\u2064 regulatory bodies must work together\u200d to strengthen \u200bthe safeguards and accountability mechanisms to\u200b prevent similar incidents in the future.<\/p>\n<p>As\u200b investigations into the fraudulent\u2062 COVID relief program \u200dloans continue, it is crucial for all parties involved to cooperate fully and transparently. Accountability is essential to restore trust in the\u2063 financial system and ensure that taxpayer \u200dfunds \u2062are utilized for their intended purpose of supporting struggling businesses and individuals.<\/p>\n<p>In conclusion, the involvement of Tencent \u2064in a startup linked to fraudulent COVID\u2062 relief program loans raises serious concerns about the oversight and effectiveness of \u2062the program. It highlights the need for stronger measures to prevent abuse and \u200censure taxpayer funds are allocated appropriately. Additionally, it underscores\u2063 the importance of thorough due diligence and ongoing monitoring to mitigate\u200b risks \u200bassociated with foreign entities&#8217; participation in \u200ccritical programs.\u2064 Moving forward,\u200b it is \u2064imperative that the U.S. government and regulatory bodies work together to strengthen safeguards and accountability mechanisms to protect against fraud and abuse.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>startup that played a role in expediting COVID relief program loans.<\/p>\n","protected":false},"author":120,"featured_media":2045935,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[],"class_list":["post-2045934","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2045934","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/120"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2045934"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2045934\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2045935"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2045934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2045934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2045934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}