SBA's Operation NO DOZE Launches in Oregon: Demand Letters to 2,300 Suspected Pandemic Loan Fraud Borrowers, $1.24 Billion in Potentially Fraudulent Loans
The U.S. Small Business Administration (SBA) Office of Inspector General and the U.S. Attorney's Office for the District of Oregon announced in Portland, Oregon, on October 28 that Operation NO DOZE has come to Oregon: the SBA will send demand letters to 2,300 borrowers suspected of Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loan (EIDL) fraud, and Inspector General data identify approximately $1.24 billion in potentially fraudulent loans associated with Oregon.
The two offices also announced a series of criminal prosecutions, arrests, indictments and civil recoveries as part of the administration's expanded efforts to combat COVID-19 relief fraud. U.S. Attorney Scott Bradford said relief funds were created to help small businesses and families survive an unprecedented crisis, not to enrich fraudsters, and that prosecutors will continue to pursue both criminal and civil avenues to recover taxpayer dollars.
SBA Inspector General William Kirk said the office's pandemic fraud data identify approximately $1.24 billion in potentially fraudulent loans associated with Oregon, and that Operation NO DOZE sends a clear message that enforcement is not letting up. SBA Deputy Administrator Bill Briggs said the SBA, in coordination with the Department of Justice, is bringing the operation to Oregon by sending the demand letters to the 2,300 suspected borrowers.
From June through September 2026, the District of Oregon's Government Fraud Task Force brought 12 enforcement actions involving more than $29 million in losses, resulting in more than $8.6 million in recovered funds. From September through October 28, the task force brought 10 additional actions involving approximately $34 million in fraud losses and approximately $7.2 million in civil recovery.
The actions announced this month include one guilty plea related to $1 million in SBA losses; two arrests involving more than $8.3 million in losses, including a previously wanted fugitive; five indictments charging individuals with over $17.6 million in losses across multiple fraud networks; and two False Claims Act matters involving four businesses, resulting in approximately $7.2 million in recovery to the SBA, both still under seal.
Among the criminal cases, Kenneth Burns was arrested on October 15 after failing to appear for a July 7 sentencing in a PPP bank fraud case causing more than $373,000 in losses; Afe Bey pleaded guilty on October 7 to wire fraud over EIDL applications totaling more than $308,000, with sentencing set for February 4, 2027; Papa Diallo was indicted on September 3 over more than $150,000 and was arrested and appeared in court on October 19; four others were indicted on October 21 over PPP applications using fabricated tax documents, and one additional individual was indicted under seal on October 15. An indictment is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
The District of Oregon's Government Fraud Task Force brings together investigators and Assistant U.S. Attorneys from multiple agencies to combat fraud involving federal pandemic relief programs, focusing on SBA programs including the PPP, EIDL and the Restaurant Revitalization Fund (RRF). The offices said the Criminal Division continues to identify new fraud targets, while the Civil Division pursues qui tam and other civil matters to secure settlements and recover taxpayer dollars.
Source: GSM · USA (original Chinese edition)
Photo: 图：位于 Portland 的俄勒冈区联邦法院 Mark O. Hatfield United States Courthouse。M.O. Stevens 摄，公共领域，经 Wikimedia Commons。Photo: The Mark O. Hatfield United States Courthouse in Portland, home to the U.S. District Court for the District of Oregon. Photo by M.O. Stevens, public domain, via Wikimedia Commons.
