Nurse Charged for Defrauding COVID-19 Relief Programs (Florida January 8, 2021), 78. Honestly, I think theyll be finding and prosecuting these for years. Search our database that is tracking this information. Two Men, Identity Theft and a Conspiracy (Rhode Island - May 5, 2020) David Staveley, aka Kurt D. Sanborn, and David Butziger were charged with conspiring to seek over $530,000 in PPP money. The banks internal auditors will then report it to the SBA faster than you can say oops, bad move.. The technical storage or access that is used exclusively for statistical purposes. The defendants are charged with using fake and stolen identifies to apply for 35 CARES Act loans. NFL Player Blows 62 Grand at the Hard Rock Casino (Florida September 10), 49. Have a question about Government Services? Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you. The U.S. Secret Service and IRS participated in this investigation, along with the U.S. Attorney for the Southern District of Florida. U.S. Attorney's Office, Northern District of Georgia, Former U.S. Loot paid for with PPP loan money included two Lamborghini Huracan sports cars, a Rolex Presidential watch, a 5.73-carat diamond ring, a diamond bracelet, two Tesla cars, a 26-foot Pavati Wake Boat, a 33-foot Cruiser yacht, two Rolls-Royces, a Lamborghini Urus luxury SUV, a Kia Stinger, a Ford F-350 pickup truck, at least three Bentleys, and an assortment of other pricey vehicles and boats. Our mission is to bring you "Small business success delivered daily.". The criminal complaint goes on to say Caraballo also received $55,000 in Economic Injury Disaster Loan (EIDL) relief. PPP Loan Recipient List By State Georgia 553,322 TOTAL PPP LOANS $24.9B TOTAL LOAN AMOUNT $44,956 AVERAGE PPP LOAN 5 AVG COMPANY SIZE Georgia has a total of 553,322 businesses that received Paycheck Protection Program (PPP) loans from the Small Business Administration. The charges allege he applied several times to get aid totaling $3 million, in the names of businesses with no actual operations. Thats a great point, Alex! On March 16, 2020, Attorney General William Barr directed all 94 U.S. Attorneys Offices to prioritize investigating and prosecuting PPP loan cases of fraud. Its alleged he then blew the money on a Rolex Presidential watch, a 5.73 carat diamond ring and other jewelry. Many cases involve forged IRS filings one of the easiest things for the government to check. Judlex Jean Louis of Lauderhill, Florida, was arrested for aggravated identity theft and other charges for allegedly getting three loans totaling $60,000 using fictional or stolen identities. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. He ultimately received over $2 million but the government seized $1.98 million from business bank accounts. Using an online tool, I discovered that the small medical lab I had worked at for 4 years had, in fact, been approved for a PPP loan end of April. As part of his guilty plea, Darrell Thomas admitted his participation in fraudulent conduct totaling more than $14.7 million, including more than $11.1 million in fraudulent PPP loans, more than $1.15 million in fraudulent Economic Injury Disaster Loans, and more than $2.4 million in fraudulent automobile loans. Glad theyre doing the work to clean it up and recover some of these funds. They are accused of using the cash for personal purchases including a Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover. The impact of COVID-19 on small businesses around the country has been devastating, said Acting U.S. Attorney Kurt R. Erskine. The complaint alleges Smith bought a $96K Ferrari and other luxury items and withdrew $271,805 in loan proceeds. Tonye Johnson was also charged with getting a PPP loan of $389,627and paying a portion of the loan proceeds to his co-conspirators. On August 9, Manukyan allegedly boarded a flight from Mexico City to Belarus. After obtaining a second search warrant for the cell phones, USPIS inspectors uncovered hundreds of text messages and photos related to an additional crime, fraudulent EIDL and PPP business loans. Someone we know got 4 PPP loans, all under diff businesses, but almost certain he submitted all the same ppwk for each business. The case was investigated by the FBI and SBA-OIG. Kenneth Gaughan is charged with obtaining over $2.1 million in PPP and Economic Injury Disaster Loan funds. Fraudsters like Benjamin Hayford greedily steal money that should be going to Americas small business owners who are struggling during this public health crisis, said U.S. Attorney Trent Shores. He had been removed by the Board of Directors from his company in 2019, yet submitted an application in the name of Crosscode dba Kloudgaze. He received over half a million dollars in PPP funds, and allegedly put a down payment on a pool and transferred money to a financial account in India. Authorities seized the yacht, car, and various bank and investment accounts. Claims of employees who didnt exist. You can also check to see how many workers companies receiving the assistance said they kept on the payroll. David Christopher Redfern of Trinity, North Carolina is charged with fraudulently getting EIDL (Economic Injury Disaster Loan) and PPP funds totaling $414,000. He then allegedly transferred the illicit gains to his personal bank accounts. 95% Success Rate. Game of Thrones Inspired These Fake Company Names (North Carolina September 29), 54. Specifically, if and when Firm cooperates with Local Counsel, Firm will disclose the details to the client in writing for their approval. Sign up for free Patch newsletters and alerts. The overwhelming majority of owners who received PPP loans legitimately used the money to retain employees and stay operational. Attorneys office, the companies didnt exist or didnt have the employees he claimed. However, this grace period has expired, and now the SBA Office of Inspector General (SBA-OIG), the U.S. Department of Justice (DOJ), and other federal agencies are aggressively targeting companies suspected of engaging in PPP loan fraud. Justice Department announces charges brought against 57 people for PPP fraud, representing $175 million in alleged fraud. US Attorney's Office for Middle District of Ga. investigates high volume of PPP loan fraud By Jessie Gibson Published : Jun. ATLANTA Federal fraud charges were filed against 10 people, including six Metro Atlanta residents, who stole more than $700,000 in COVID-19-related government aid, prosecutors said. The Justice Department is hot on their trail. Married Couple Attempting to Flee (Virginia June 24), 17. According to Acting U.S. Attorney Erskine, the first superseding indictment, and other information presented in court: From April 2020 through August 2020, the conspirators in the scheme allegedly submitted, or assisted in the submission of, PPP loan applications on behalf of fourteen businesses, seeking loans of approximately $700,000 - $850,000 for each company: All Star Room & Board Services of Michigan Inc. Great Article! 18, 2021 at 1:24 PM EDT David T. Hines of Miami is charged with fraudulently seeking $13.5 million in PPP funds using false statements about various companies payroll expenses. In order to ensure that no one at your company raises questions for federal authorities unnecessarily, it is imperative to rely on the advice and representation of experienced federal counsel. We have not conducted an exhaustive review of every sentence that federal courts have already imposed in PPP loan fraud cases as of November 15, 2021. Hollywood Film Producer (California May 22), 7. Mohan Mukand, who used to work for Microsoft and Amazon according to his LinkedIn profile, is charged with submitting 8 PPP applications on behalf of six companies. Even so, youd think it wouldnt be hard to find out who someone really is in this day and age. Khalil Gibran Green, Sr., 47, of Cleveland, Ohio, pleaded guilty on September 1, 2020, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Impact Creations LLC. Nationwide Federal Defense, Compliance and Litigation. He also agreed to forfeit various assets, including more than $2.1 million in seized funds, three luxury vehicles a 2018 Mercedes-Benz S-Class S65AMG, a 2018 Land Rover Range Rover, and a 2017 Acura NSX and several items of jewelry, including a gold Rolex. payments for travel, vehicles, and home office expenses) can also create risk. Court documents identify 3 confidential human sources, i.e., informants. Whoa! He allegedly lied about not being under criminal charges he in fact was under indictment for a bribery scheme. Thomas is from Duluth. Special Agent in Charge Joseph R. Bonavolonta of the FBIs Boston Field Office said in a statement, Thankfully we were able to stop them before taxpayers were defrauded.. Once Quarterman and her co-conspirator, Katrina Lawson, who is a former deputy sheriff for Fulton County, Georgia and is still a certified peace officer, became familiar with the requirements and applications for the EIDL program and the PPP, they allegedly devised a scheme to submit fraudulent business loan applications on behalf of their friends and family who did not actually own businesses. Businesses that have to repay the loan get 2 years to repay if funding was issued before June 5. Robert, youre probably right about finding fraud for years to come. IT Company Owner (Illinois June 16), 13. Authorities state Bellamy allegedly obtained a Paycheck Protection Program loan of $1,246,565 for his own company, Drip Entertainment LLC and then spent the proceeds on purchases at Dior, Gucci, and jewelers as well as withdrawing $302,000 in cash. Five others pleaded guilty in this $3,000,000 ring: Antonio D. Hosey, Timothy Williams, Stanley Dorceus, Kenneth L. Wright, Jr., and Mark A. Stewart. You can also check to see how many workers companies receiving the assistance said they kept on the payroll. This alleged PPP ring paid each other for services never rendered to try to hide the money trail. Based on the investigation, none of the companies allegedly engaged in any business-related transactions or used the PPP loan proceeds for any authorized purposes. When making use of PPP loan funds, companies should extensively document their expenditures in order to demonstrate that they have used their PPP loans for authorized purposes only. Lavanture allegedly went on a spending spree and bought a motel and also an 8.54-acre estate with a Tuscan-style mansion on it. The pair are charged with submitting 18 fraudulent Paycheck Protection applications with false payroll tax returns, and receiving $1.4 million. However, on April 14, 2020, Olugbuyi allegedly filed a 1040 non-filer return reporting $1 in income for 2019 which qualified him to receive a $1,200 economic impact payment. So many businesses needed federal emergency assistance to stay afloat during a pandemic, and these defendants allegedly misdirected millions of dollars of that assistance money to their own pockets for luxury items, said Chris Hacker, Special Agent in Charge of FBI Atlanta. 4 Of The Best Ice Cream Spots In The Atlanta Area Vegan, Too! Authorities allege he used the money to buy a $1 million home and pay for $30,000 in home improvements. Rahul Shah of Evanston is charged with bank fraud and making false statements to a financial institution. Andre Lee Gaines, 67, of Dallas, Georgia, pleaded guilty on June 17, 2021 to one count of making false statements to the FBI in connection with the loan obtained by his business, Gaines Reservation and Travel. The complaint alleges he ultimately received a loan for over $1 million. Subscribe to The Federal Docket to keep on top of recent cases and important developments in federal criminal law. Go big or go home could be the motto here. And for how much? She is alleged to have obtained nearly $600,000. If an applicant knowingly answers any of these questions falsely, it may face False Claims Act liability.. Austin Hsu of Issaquah, WA was charged with wire fraud in connection with fraudulently seeking over $1.1 million. Distinction is a loose term for having the Justice Department and Assistant United States Attorney Brian C. Rabbitt call you out as the 5oth prosecution. Jae H. Choi, a licensed attorney in New Jersey, was charged with getting $9 million in PPP funds from three different lenders, based on fabricated employees and forged documents. ATLANTA Twenty-two people have been charged in a federal scheme to defraud the government from taking out false Paycheck Protection Program loans, and 11 of those people are from the metro Atlanta area. Eight other defendants include Damion O. Mckenzie, Andre M. Clark, Keyaira Bostic, Wyleia Nashon Williams, James R. Stote, and Ross Charno, all of Florida. To provide the best experiences, we use technologies like cookies to store and/or access device information. On January 4, 2021, the DOJ announced that Georgia resident Hunter VanPelt, also known as Ellen Corkrum, was sentenced to nearly 3.5 years in prison (41 months) for PPP loan fraud. While the government is helping those in need, law enforcement is swiftly addressing these vulnerabilities. He allegedly used those funds to buy a 33-foot Cruisers Yacht for $300,000, a $1.13 million rowhouse, and a $46,000 luxury Kia Stinger. Diverted Funds to Relatives and Minor Children (New Jersey November 19), 70. Members of the public are reminded that the indictment only contains charges. The allegations say he submitted fake IRS documentation. Purchased a Luxury Mercedes E400 (Arizona December 17), 74. - Federal Lawyer We Will Protect Your Rights, Reputation and Freedom. Buoi allegedly misrepresented how many wokers he had and that the United States was their primary residence (required). In the loan applications, the defendants certified that each applicant business was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors; that the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents and forms was true and accurate in all material respects. Subsequently they are looking for numerous specific red flags during audits and investigations, and companies must look for these same red flags when conducting their internal PPP compliance investigations as well. The charges reinforce our resolve to prosecute anyone who used pandemic relief funds for personal gain., So many businesses needed federal emergency assistance to stay afloat during a pandemic, and these defendants allegedly misdirected millions of dollars of that assistance money to their own pockets for luxury items, said Chris Hacker, Special Agent in Charge of FBI Atlanta. Along with Lawson and Quarterman, the federal indictment includes: Charges against the named co-conspirators include various counts of bank fraud, mail fraud, wire fraud, conspiracy to commit wire fraud, and money laundering for a total of approximately $714,000, prosecutors said. Jean R. Lavanture of Saugerties was arrested for bank fraud for allegedly obtaining $5 million in government-backed loan for companies that had neither employees nor income in recent years. Applied for PPP Loan While out on Bail (Tennessee November 9), 64. Las Vegas Man Hits 7 Different Lenders (Nevada January 28, 2021), 79. Check Out These 30 eCommerce Web Design Ideas, Stop Worrying About Mobile Ad Fraud Thanks to This New Tool, Shutterstock Revenue for 2015 Sees 30 Percent Increase, Pairing People with Platforms for Better CX, How to Protect Your Small Business from the Latest Scam -- A More Elaborate 419 Fraud, See the SBA website for updated forgiveness information, David Staveley, aka Kurt D. Sanborn, and David Butziger were charged with conspiring to seek over $530,000 in PPP money. Prosecuting PPP loan while out on Bail ( Tennessee November 9 ), 17 you `` business... Is alleged to have obtained nearly $ 600,000 8.54-acre estate with a Tuscan-style mansion on.... 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