A former USAID employee has been charged with fraud for creating a fake company to illegally obtain coronavirus relief funds. Yusuf Akoll, who worked as a Senior Procurement Contract Specialist at the U.S. Agency for International Development, allegedly set up a company called Naagode Consulting LLC in Virginia. He applied for a Paycheck Protection Program (PPP) loan, claiming he needed the funds to save jobs.
According to federal prosecutors, Akoll registered the company in November 2020 but falsely stated that it had been in operation since January 2020. To support his loan application, he claimed the business made $40,000 in 2019, despite it not having any income that year. This led to him receiving two PPP loans totaling around $16,666.
The case highlights serious issues with how the government distributed funds during the pandemic. Akoll’s claims raised red flags, especially since they contradicted each other. The Small Business Administration (SBA) failed to verify basic information, such as state corporation records, which might have prevented the fraud.
This incident comes amid broader concerns about the management of pandemic relief funds. USAID has faced scrutiny over its oversight, especially since it was absorbed into the State Department. Critics argue that the government’s "pay and chase" model allowed for widespread fraud, as it prioritized rapid disbursement over thorough vetting.
In 2023, the Biden administration announced it would not pursue repayment of PPP loans under $100,000, citing equity concerns. This decision has drawn criticism, with the SBA’s inspector general warning that it could encourage more fraud.
Congress has also been involved in discussions about the oversight of pandemic relief. There were concerns about the future of the Special Inspector General for Pandemic Recovery, which was created to investigate fraud. Advocates worry that cutting its funding could hinder efforts to recover funds lost to fraud.
Senators from both parties are pushing to maintain oversight, highlighting the need to prevent fraudsters from taking advantage of taxpayer money. Reports suggest that criminals may have stolen up to $1 trillion in COVID relief funds, much of which went overseas.
As the investigations continue, the case against Akoll serves as a reminder of the challenges in managing large-scale government programs, especially in times of crisis.