Latest news with #COVID19Relief
Yahoo
21-07-2025
- Business
- Yahoo
Delta Air Lines, Inc. (DAL) Agrees to $8.1 Million Settlement of Federal COVID-19 Fund Misuse Case
Trading at a low P/E multiple with potential upside for investors, Delta Air Lines, Inc. (NYSE:DAL) is among the . Pixabay/Public Domain On July 16, 2025, it was announced by the U.S. Justice Department that Delta Air Lines, Inc. (NYSE:DAL) misused federal COVID-19 relief funds, as a result of which the company will pay $8.1 million in a settlement. The Payroll Support Program was created under the 2020 CARES Act to support airlines with the retention of workers during the pandemic, ensuring that the airlines could resume operations once the pandemic eases. The state claims that Delta Air Lines, Inc. (NYSE:DAL) violated the program's terms by exceeding compensation limits for some executives in March 2020 and April 2023. However, Delta Air Lines, Inc. (NYSE:DAL) has denied the claims, labeling the whole issue as a 'technical disagreement.' Thus, to avoid costly litigation, the company has agreed to the $8.1 million settlement. Delta Air Lines, Inc. (NYSE:DAL), operating in the U.S. and internationally, offers scheduled air transportation services for passengers and cargo. It is on the list of cheap transportation stocks. While we acknowledge the potential of DAL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Billionaire Kerr Neilson's 10 Stock Picks with Huge Upside Potential and . Disclosure: None.
CBS News
26-06-2025
- Business
- CBS News
Minneapolis man becomes 47th person convicted in $250 million Feeding Our Future fraud scheme
A 35-year-old Minneapolis man pleaded guilty to his role in what federal prosecutors say is the largest pandemic fraud case in the country, Acting U.S. Attorney Joseph H. Thompson announced Thursday. Court documents state that Ahmed Ghedi pleaded guilty to wire fraud and money laundering. His sentencing will be scheduled at a later date. He is the 47th person convicted in the $250 million Feeding Our Future fraud scheme, according to the U.S. Attorney's Office in Minnesota. Prosecutors say Ghed, like many of those convicted in the case, fraudulently claimed to be running a child nutrition site, feeding thousands of children a day in St. Paul and took federal COVID-19 relief funds to do so. Over nearly one year, Ghedi deposited more than $2 million in Federal Child Nutrition Program funds into the bank account of a shell company he created, according to court documents. He used the funds to purchase more than $245,000 in motor vehicles and more than $200,000 in credit card spending. Additionally, Ghedi used approximately $560,000 in fraudulently obtained funds towards the purchase of a mansion-turned-office building and adjoining property in south Minneapolis. Both the property and a 2021 Jeep Grand Cherokee will be forfeited to the United States, prosecutors say. Ghedi reportedly paid a Feeding Our Future employee $5,000 in kickbacks in exchange for sponsoring his business's participation in the program. His company then paid the same employee an additional $49,000 in kickbacks. Court documents say Feeding Our Future received nearly $400,000 in administrative fees for sponsoring the participation of Ghedi's business in the program. The U.S. Attorney's Office in Minnesota says Ghedi received $7.2 million total from the Federal Child Nutrition Program through fraudulent claims. Earlier this year, Aimee Bock was found guilty on multiple criminal counts, including conspiracy to commit wire fraud and conspiracy to commit federal programs bribery. Bock, the founder and executive director of Feeding Our Future, was found in court to have orchestrated the defrauding of the Federal Child Nutrition Program out of a quarter of a billion dollars. Salim Said, a co-defendant in Bock's trial, was also convicted on multiple counts. Dozens of people were charged in connection with the scheme.
CBS News
22-06-2025
- CBS News
Pennsylvania man indicted in Colorado on variety of nationwide fraud schemes
A Pennsylvania man was recently indicted on a dozen federal charges related to using more than 1,000 stolen or fake identities to file for unemployment benefits and COVID-19 relief funds in more than 30 states, including Colorado. He led an effort that hauled in $5.6 million. Adepoju Babatunde Salako, a 33-year-old resident of Elkins Park, Pennsylvania, a suburb of Philadelphia, was indicted by a federal grand jury in Denver in May. He appeared in Denver federal court June 13. He faces six counts of wire fraud, one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and four counts of aggravated identity theft. Two of the four identity theft counts come from the stolen identities of Coloradans. Salako's alleged offenses began the same month (March 2020) the Coronavirus Aid, Relief, and Economic Security ("CARES") Act was signed by President Donald Trump and put in action, according to the grand jury indictment. Federal investigators claim Salako filed for expanded unemployment insurance benefits and applied for other funds provided by new Small Business Administration (SBA) programs - the Paycheck Protection Program ("PPP") and the Economic Injury Disaster Loan ("EIDL") - all enacted by the CARES Act. Salako worked with a resident of Nigerian to file and apply for the federal funds with stolen identities. They funneled much of the money to Salako's personal bank accounts or out of the country. The Nigerian resident, while known to the grand jury, was not named in the indictment. Salako, using names and addresses obtained through search websites like TruthFinder, submitted 15 fraudulent applications in two-and-a-half months for the unemployment insurance benefits. They used identities of Colorado, Maryland, Minnesota, New Hampshire, and New York residents. Salako's Nigerian counterpart turned in 54 applications in five months, per the indictment. Together, they asked for more than $700,000 in funds. They received just over $73,500. But the pair's work on the EIDL and PPP loans went deeper and proved much more fruitful, per the indictment. Working with a number of other unnamed people and using more than 1,000 stolen identities, Salako and the Nigerian co-conspirator filed fraudulent COVID-19 relief claims in 30 different states. They obtained $4,711,200 in EIDL funding alone. All the EIDL payments originated from an SBA finance center in Denver, and all the money went through Colorado bank accounts to other destinations. Additionally, the group hid money through romance scams. They allegedly used fake profiles on friendship or dating sites to lure victims into performing transfers of their ill-gotten funds. Salako deposed almost a half millions dollars in one such victim's bank account, then directed that person to make cash withdrawals, purchase money orders and send money via cashier's checks to Salako's personal cell phone business, according to the indictment. Salako forwarded much of that money to accounts in China, Nigeria and the United Arab Emirates. The case was (and still is being) investigated by the United States Postal Service Office of Inspector General, Internal Revenue Service Criminal Investigation, and Colorado Department of Labor and Employment. The Economic Crime Section of the United States Attorney's Office is prosecuting it.
