On July 11, 2014, the OIG issued a memorandum to the SBA Director of Policy and Evaluation.  The memorandum provided information regarding potential fraud and improper payments that were identified during the survey phase of OIG Project 14801 – Targeted Review of Hurricane Sandy Loans.  During the review, the OIG performed detailed testing of sixteen charged-off loans focusing on loan approval, disbursement, servicing, and liquidation, which revealed potential fraud by one borrower, and loan processing deficiencies that led to $88,400 in improper payments. The OIG notified the program office of this potential fraud and the improper payments so that it could take appropriate action to identify these types of improper payments in future reviews and to implement appropriate controls to detect fraud and prevent improper payments from recurring.