PPP fraud uncovered in Chicago, informant reveals $100K bounty on FBG Duck and more in your Chicago news roundup

Today’s update is a 5-minute read that will brief you on the day’s biggest stories.

SHARE PPP fraud uncovered in Chicago, informant reveals $100K bounty on FBG Duck and more in your Chicago news roundup
merlin_111029225.jpg

At least 36 people used the address of this Salvation Army center in Humboldt Park to obtain federal Paycheck Protection Program loans, claiming individual annual income of at least $100,000. The Salvation Army says it didn’t apply for any loans and was unaware its address was being used on PPP applications.

Anthony Vazquez/Sun-Times

Good afternoon. Here’s the latest news you need to know in Chicago. It’s about a five-minute read that will brief you on today’s biggest stories.

— Matt Moore (@MattKenMoore​​​​​​​)

This afternoon will see some snow showers and a high near 35 degrees. Tonight will be mostly cloudy with a low near 19. More snow is likely tomorrow with snow accumulation of 1 to 3 inches possible and a high near 22. Sunday will be mostly cloudy with a chance of snow and a high near 27.

Top story

Clusters of pandemic relief loans went to the same Chicago addresses

During the peak of the COVID-19 pandemic, federal Paycheck Protection Program loans were intended to help people cover income losses prompted by the pandemic. But nearly three years since the pandemic began, there’s growing evidence that there was widespread fraud in the $800 billion program.

At least hundreds of Chicago and Cook County public employees, possibly more, are suspected of getting PPP checks after claiming to have phony side jobs. Clusters of people with addresses in homeless shelters and transitional housing received checks to cover at least $100,000 in annual income for pandemic losses claimed for seemingly fictitious businesses. And sources say Chicago gang members got checks to buy guns, believed to have been a contributing factor in the city’s explosion of violence during the pandemic.

The fintech — financial technology — lenders were responsible for approving most of those shady loans, according to experts and government records. Such lenders face less stringent regulation than traditional banks do.

“I think there is a very good case to be made that some of these fintech lenders either knew or should have known that they were being exploited,” said Samuel Kruger, an assistant finance professor at the University of Texas at Austin. “Probably Congress and the [Small Business Administration], which supervised the program, should have been more aware and thoughtful about this upfront.”

A congressional report on PPP fraud last year said federal prosecutors have filed more than 1,000 cases of PPP fraud involving more than $1.5 billion in losses to taxpayers and that fraud in the program is estimated to be in the hundreds of billions of dollars.

Read the full eye-opening investigation by our Frank Main and Lauren FitzPatrick here.

More news you need

A bright one

The seed in this Pilsen mural is meant to signify the neighborhood’s growth

“Semilla,” a mural in Pilsen by Mexican artist Raul Sisniega, starts with a seed and ends with a forest.

The 14-feet-tall, 40-feet-long mural spans a brick wall of All Care Dental, 1918 S. Blue Island Ave., and features reality-bending Mexican imagery meant to represent the neighborhood and its origins as a Mexican American enclave.

“I heard stories from older people, like first-generation Mexicans in Pilsen, of how they got there and all the difficulties they had to struggle with and then, like 40 years later, see how it grew,” says Sisniega, 42, who lives in Mexico City. “To me, it was something worth talking about.”

semilla_full__1_.jpeg

“Semilla,” a mural in Pilsen by Mexican artist Raul Sisniega, stretches across a wall of All Care Dental, 1918 S. Blue Island Ave.

Provided

Sisniega says he spent two weeks checking out Pilsen before getting to work in 2021 on “Semilla,” which is Spanish for “seed.”

“I think it’s important to understand the context of where you’re going to paint so that you don’t act like an invader,” Sisniega says.

The mural fades in from a series of pixels — to represent the various aspects that make up a person, the history behind them and those who came before. The bits come together to form a profile of a face.

“I was thinking about a nonbinary character with brown skin that is created by the pixels of their history,” Sisniega says. “Like a young person created by the stories of the past, each story being a pixel.”

Our Katie Anthony has the full story behind the mural here.

Want more public art stories? Check out our other newsletters and sign up for Murals & Mosaics — sent every Friday to your inbox.

From the press box

  • “The Bulls have three very good players who can’t be great together ... [Bulls president of basketball operations Arturas] Karnisovas, the man who put this together, has to answer for that,” Rick Morrissey writes in his latest column.
  • The Sky announced today the addition of businesswoman Nadia Rawlinson to their ownership group. The timing of the move “shouldn’t be viewed as coincidence” with the WNBA entering a free agency period with many of the league’s biggest stars available, Annie Costabile writes.
  • Ahead of another weekend of high school hoops, Joe Henricksen breaks down the biggest matchups, including Brother Rice-St. Ignatius and New Trier-Glenbrook South.

Your daily question☕

How much snow needs to fall before it’s acceptable to call “dibs” on a parking space?

Send us an email at newsletters@suntimes.com and we might feature your answer in the next Afternoon Edition.

Yesterday we asked you: How do you feel about restaurants adding a non-gratuity surcharge to your bill?

Here’s what some of you said...

“You mean, how do I feel about the restaurant owner taking responsibility for paying workers a decent wage and not forcing them to hustle for tips? For my bill to be the actual cost and not force me to determine what I have to add to make a decent wage for the staff Yes. Let’s do it. Institute actual wages for all restaurant staff and banish tipping.” — Rudy Leon

“Restaurant checks are starting to look like cable bills with all of the charges some are adding. It’s ridiculous.” — Mary Roslawski-Horne

“Depends on the reason. If it is going toward providing health insurance and a living wage to the staff, then I am OK with that.” — Eric Bruce

“I don’t like it at all. I ask for it to be removed when I see it on the bill. Prices for dining have gone up plenty and enough is enough! FYI, I am and always have been a generous tipper!” — Sandi Rapaport

“I do not like it, but I understand food prices are so high that they might go out of business if they do not add the surcharge.” — Risteen Gates

“I’ll do my own tipping based on the quality of the service. Put myself through school as a waiter and know the difference between good and bad service.” — Steve Goldberg

“I’m fine with it if they notify you ahead of time. If the first time you hear about it is when you get the bill, it’s wrong.” — Dave Willoughby

“It’s like airline prices with all the taxes and add-on fees. Just add the cost to the price of the food and drink. We customers can take it from there.” — Tracy Lewis Liang

“Definitely a ripoff. Every restaurant that I’m familiar with has raised their menu prices by huge percentages — and now they want to add a gratuity surcharge? I’ve been tipping +20% way before the pandemic/supply chain issues. If there’s a surcharge it’ll be deducted from my customary gratuity.” — Howard Sims

“I will not patronize a restaurant that would charge a non-gratuity surcharge. Everyone is hurting, pandemic and recession, restaurants and patrons alike. I hope the restaurants who are charging these surcharges are clearly showing the surcharges instead of hiding them in small print so they are not noticed. That is deceitful.” — John Coruthers

Thanks for reading the Chicago Sun-Times Afternoon Edition. Got a story you think we missed? Email us here.

The Latest
The boy suffered a gunshot wound to the ankle in the 4000 block of West Madison Street and was hospitalized in good condition, authorities say.
Caruso has been essential in this team trying to build an identity, and after missing the last two games with a left ankle injury, he returned Thursday. It was short-lived.
Strike-delayed Emmy show is set for Jan. 15, with the Grammys three weeks later
James Soto, 62, and David Ayala, 60, were released Thursday night after a judge vacated their convictions. They were serving life sentences in the 1981 shooting deaths of a Marine and a teen girl in McKinley Park, and were 20 and 18 when they were wrongfully charged.
Morgan Mesi says Breakthru Beverage Illinois denied coverage of a bilateral mastectomy and hormone therapy, according to a complaint filed in federal court Thursday.