South Suburb investigating city employees' use of forgivable loans for unregistered businesses

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MARKHAM, Ill. (WBBM NEWSRADIO)-- An investigation in Markham into the unusual number of unregistered businesses receiving forgivable loans under the Paycheck Protection Program has resulted in a police officer being placed on leave and other city employees have also been found to be receiving the loans as well.

Markham has been entering city employees’ names into the PPP database and so far as many as ten will have to explain why they have businesses or maybe phantom businesses not registered with the city.

This comes after a CBS 2 investigation found that 1,400 residents received PPP funds for unregistered businesses. They include a police officer who has been placed on administrative leave. Kenneth Muldrow received $20,000 for a landscaping business that he has both confirmed and denied owning.

“Kenneth Muldrow is no longer patrolling the streets of Markham,” said City Administrator Derek Champion. “There's certain rules especially police officers, they have to let us know about other employment or business opportunities.”

The city is continuing to investigate and if the forgivable loans were obtained through fraud, it would be a federal crime.

“We are casting a wider net within the city,” Champion told CBS 2. “It’s no witch hunt for one particular individual.”