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Mount Vernon internal investigation finds 17 city employees received federal coronavirus grants, loans

Mount Vernon has completed an internal investigation into an alleged paycheck protection program scam involving city employees.

News 12 Staff

Nov 1, 2020, 1:27 PM

Updated 1,325 days ago

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Mount Vernon has completed an internal investigation into an alleged paycheck protection program scam involving city employees.
The city found that 17 employees did receive federal coronavirus grants or loans.
The list of employees being accused are 10 firefighters, five workers at the Water Department, a Department of Public Works staffer and a civilian employee in the police department.
News 12 first broke the story last week. The FBI is investigating a possible kickpack scheme involving Mount Vernon employees, according to law enforcement sources.
News 12 is told a ringleader recruited colleagues for PPP loans, which are intended to help small businesses during the pandemic.
The leader allegedly received a kickback when the loans were granted.
Mayor Shawn Patterson-Howards tells News 12 that all city employees identified are still employed.
She says some do own individual businesses, and federal officials are working to see if the loans or grants were legally obtained.


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