KANSAS CITY, Mo. — Yellow Corporation, formerly known as YRC Worldwide Inc., of Overland Park has caught the eyes of government officials after discrepancies were discovered in its claims under the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
The U.S. House Select Subcommittee on the Coronavirus Crisis began investigating waste, fraud and abuse in pandemic relief programs implemented by the Department of Treasury, according to a news release.
Such investigation led a subcommittee focusing on the CARES Act loan to be concerned by the program’s administration.
Yellow Corporation received 95% of the program’s funds and allegedly “made misleading representations to government officials in the course of its efforts to obtain a loan under the CARES Act,” according to the release.
Set up as a national security loan program to combat strain due to pandemic-related loss, the subcommittee received email communication where one Yellow Company executive revealed they had other ideas.
Email correspondence includes the executive stating the loan could be used to “catch up” capital investment while the company “had its hand in the cookie jar.”
Additional alleged misleading representations include Yellow Corporation reporting twice the share of trucking services to the Department of Defense than the DOD assessed.
Based on such misleading representations, Select Subcommittee on the Coronavirus Crisis Chairman James E. Clyburn wrote Wednesday to request the Office of...
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