LAS VEGAS (FOX5) -
Local FBI agents raided several businesses Wednesday suspected of involvement in a multi-million dollar fraud scheme.
The feds raided businesses all over the Valley. Those businesses may have extorted millions of dollars from small business owners across the country.
Entry was made to four local businesses simultaneously. A fifth business in Phoenix, AZ was raided as well. Agents were searching for evidence of grant fraud.
Authorities are calling this one of the worst cases of fraud in recent years. Agents pulled documents, hard drives and other materials.
It's alleged the companies would get licensed as business consultants and take on the role of middleman. Scammers would cold call small business owners – usually out-of-state – and tell them they are entitled to receive government grants in exchange for an upfront fee.
Those government checks never arrived.
Agents arrested two local men on unrelated warrants who are believed to be part of the scheme.
The Better Business Bureau told FOX5 grant fraud is a problem that Las Vegas hasn't been able to shake. Back in October of 2011, investigators searched another business believed to be involved in grant fraud.
The FBI believes many of the suspects have been operating in town for years, managing to stay off their radar.
The Better Business Bureau has received more than 51,000 inquires about businesses offering grants, 441 in southern Nevada alone.
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