In July, the Feds seized $866,019 from his bank accounts. Encompassing multiple states, authorities said the individuals took advantage of the Paycheck Protection Program and the Economic Injury Disaster Laon, using made-up businesses to file fraudulent loan applications for upwards of $10,000 for that did not have to be repaid under some circumstances. David T. Hines of Miami is charged with fraudulently seeking $13.5 million in PPP funds using false statements about various companies payroll expenses. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. SBA partner banks initially approved 11 of the fraudulent PPP loans Lawson submitted and ultimately paid . The Department suggests that "criminal rings" are orchestrating this fraud, without providing any real details. Goldstein allegedly transferred $355,000 in his personal bank account. Bank Fraud (18 U.S.C. Miles allegedly used the gains to purchase a Bentley and Cadillac, and withdrew hundreds of thousands of dollars. Andre Gainess sentencing is set for October 6, 2021 before Judge J.P. Boulee. He then allegedly transferred $47,000 to his personal checking account. He allegedly created fake technology companies to obtain $1.5 million in funds. Attorneys office, the companies didnt exist or didnt have the employees he claimed. I did too!! The pair allegedly received $97,800 and $125,900 respectively. This comes as federal prosecutors in Georgia continue to make new arrests for PPP fraud. Fewer than 150 defendants out of of over 5.2 million loans is a minuscule percentage. Firm's engagement letter and Firm's website disclaimers provide additional details. Agriculture, Forestry, Fishing and Hunting. In August 2021, Ms. VanPelt pled guilted to bank fraud related to submitting six fraudulent PPP loan applications on behalf of six companies she owned or controlled. Fugitive defendant who fled during trial convicted by federal jury for laundering millions of dollars stolen from fraud victims throughout the U.S. Twenty Two Defendants Charged In Connection With Alleged $11.1 Million Paycheck Protection Program Fraud Scheme. Hopefully someone will find this. How to apply for a loan on your ownhttps://bench.co/blog/operations/how-to-apply-first-ppp-loan/ Through August 8, 2020, when the first Paycheck Protection Program PPP program closed, the SBA approved 5,212,128 loans. It is free MONEY no one will repay one single dollar. Recording Artist Buys Ferrari with PPP Money (Florida October 6), 57. In reality, however, none of the businesses had employees or payroll expenses. Co-Leader of COVID-19 Loan Fraud Ring Extradited from Montenegro to Begin Serving Prison Sentence . You can also check to see how many workers companies receiving the assistance said they kept on the payroll. US Attorney's Office for Middle District of Ga. investigates high volume of PPP loan fraud By Jessie Gibson Published : Jun. Miami Wannabe Farmers (Florida August 26), 40. To request removal of your name from an arrest report, submit these required items to arrestreports@patch.com. Under the CARES Act, companies are only eligible to receive one PPP loan from one lender at a time. Dr. Nick Oberheiden is a nationally recognized expert on PPP loan laws. 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. (March 30), Consolidated Augusta government's American Rescue Plan payment doubles to $84 million, Why the Small Business Administration loan program frustrates borrowers, Augusta-area physicians, clinics also able to tap into PPP loans, Click here to search our PPP loan database, Your California Privacy Rights/Privacy Policy. Have we seen the last of Paycheck Protection Program PPP loan fraud prosecutions? Nine EIDL and PPP Loan Applications (Washington October 27), 62. Cherry was on supervised release in an unrelated federal case when he applied to the Small Business Administration program. But of course, the government has to prove the allegations. All visitors to this Website are informed that Oberheiden P.C. So youre really that miserable that you would call and report someone ? Ex-Felon Charged With PPP Loan Fraud (Rhode Island September 22), 53. Ngoc Manh Nguyen, Victoria Dieuy Ho, and Dat Tat Ho were charged for allegedly having misrepresented employee payroll figures to receive $13 million in COVID-19 loan funds. They allegedly discussed their fraud in email and one assumed the identity of his own brother. Diamond Blue Smith, a recording artist, is charged with being part of the nationwide $24 million scam ring mentioned above. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. Antonio George of Michigan was charged in a criminal complaint with trying to obtain $3.1 million in PPP loans on behalf of 19 different companies. Authorities seized the Range Rover, worth about $125,000, jewelry, $120,000 in cash, and $3 million from 10 bank accounts. In that same time frame, Lawson allegedly submitted 11 fraudulent PPP loan applications on behalf of many of the same individuals in an attempt to obtain at least $224,000. I appreciate your consideration/guidance/help/time. Search our database that is tracking this information. They do not appear to be honest mistakes. 1343) and making false statements to the SBA and FDIC-insured banks (18 U.S.C. Bern Benoit, 45, of Burbank, California, pleaded guilty on March 11, 2021 to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Transportation Management Services Inc. Benoits sentencing is set for September 8, 2021 before Judge J.P. Boulee. 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. Have a question about Government Services? Tristan Bishop Pan was charged for allegedly seeking $6 million in Paycheck Protection Program loan. Heres a list of the PPP loan prosecutions to date: 1. Some of Quarterman and Lawsons co-conspirators also allegedly recruited additional participants to the scheme and then sent their information to Quarterman for fraudulent loan applications. U.S. Attorney Brian T. Moran said in a statement, I am pleased that the systems designed to detect and deny fraudulent payments caught his scheme before federal funds went out the door.. The total approved was over $525 billion, demonstrating its success. Fugitive defendant who fled during trial convicted by federal jury for laundering millions of dollars stolen from fraud victims throughout the U.S. 10 Defendants Indicted In Multi State, Fraudulent COVID 19 Related Business Loan Scheme. 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. On average, companies that received a loan got $101,000 according to SBA data. Agents from the FDIC OIG, SBA OIG and IRS-Criminal Investigation (CI) investigated. Walmart Project Manager (Oklahoma June 4), 10. Handmade Entrepreneur (Arkansas July 16), 27. Ricky Dixon, 52, of Warren, Michigan, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, aggravated identity theft, and money laundering in connection with his involvement in the loan obtained by his business, RK Painting Co., and several other businesses loans. Justice Department announces charges brought against 57 people for PPP fraud, representing $175 million in alleged fraud. ATLANTA - Seventeen more individuals have been charged in connection with a fraudulent scheme to obtain approximately $11.1 million in Paycheck Protection Program (PPP) loans and to use those funds to purchase luxury vehicles, jewelry, and other personal items. Former Police Officer Sentenced For Money Laundering. James McFarland, 56, of Atlanta, Georgia. The defendants are charged with various counts of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering. Our focus is on fraud.. For a quick overview, this infographic tells the story of what happens when the funds are misused in a PPP loan fraud. According to Federal authorities, Crowther submitted an application on behalf of his roofing company that contained false and misleading statements. Trucking Company Owner (Utah July 8), 22. Under the terms of the PPP, utilizing loan funds for personal expenses is expressly prohibited. NINETY-NINE (99%) percent will NOT need to worry and lose sleep and that is because, The U.S. Small Business Administration is a United States government agency. Authorities seized the yacht, car, and various bank and investment accounts. Both are fraud. Sum of Forgiven Amount. Anecdotally, however, courts are routinely handing down . Defunct Chicago Restaurateur (Illinois August 28), 42. I was not hired back. The PPP loan applications reported that each business had between 59 and 69 employees and approximately $295,000 to $342,000 in average monthly payroll expenses. IRS-CI will continue to help illuminate these criminal deeds with our financial expertise., The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act, said J. Russell George, the Treasury Inspector General for Tax Administration. The Vegas High Roller (California July 16), 26. Teldrin Foster, 39, of Decatur, Georgia, is charged with conspiracy to commit wire fraud in connection with the loan obtained by Bellator Phront Group Inc. Denesseria Slaton, 52, of Stockbridge, Georgia, is charged with conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc. Charmaine Redding, 27, of Macomb, Michigan, is charged with conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc. Another defendant, Carla Jackson, 53, of Tucker, Georgia, was previously charged by indictment on August 4, 2020 with money laundering in connection with laundering the proceeds of Gaines Reservation and Travels PPP loan. Law enforcement assisting in the investigation included the Small Business Administration OIG office, the FBI, FDIC and others. Its intended to offer news and peer perspective on an important issue that affects us as business owners. Geoffrey M. Palermo of Novato faces charges of wire fraud and making false statements. Claims of employees who didnt exist. They allegedly discussed their fraud in email and one assumed the identity of his own brother. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. 18, 2021 at 1:24 PM EDT Feel free to share this infographic (attribution required) on your own site by copying and pasting the code below: Could these prosecutions involve nothing more than paperwork mistakes? A few individuals will be arrested stripped of their material things. Other red flags for PPP loan fraud include atypical business activities such as forming new business entities and entering into new debt obligations. Postal Inspection Services and the Drug Enforcement Administration of methamphetamine hidden in dog food and shipped to one of the defendants led to the discovery of details of people in Houston, the Washington, D.C.-Metro area, and Metro Atlanta involved in a scheme to defraud the government of money through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. And you wont believe how rotten they are. 75 Ted Turner Dr. SW
He allegedly submitted false documentation on behalf of multiple companies purporting to register emotional support animals. Millions of dollars of coronavirus relief funds meant to keep employees on the payroll were instead blown on extravagant personal spending sprees all by a relatively small handful of people. Nationwide Federal Defense, Compliance and Litigation. William Sadleir, the ousted head of Aviron Pictures, was charged with wire and bank fraud in connection with a $1.7 million PPP loan. Fahad Shah got $1.5 million in funds. Paycheck Protection Program (PPP) loans have aided more than 5.2 million small business owners, providing a much-needed lifeline during the Coronavirus outbreak crisis. But keep it all in perspective. No. A .gov website belongs to an official government organization in the United States. 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. 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. At Oberheiden P.C., we are actively representing companies with regard to PPP compliance during the coronavirus pandemic, and we are representing companies in PPP loan fraud audits and investigations as well. Legitimate small companies and self-employed individuals needed speed. Obtaining more than one PPP loan (or stacking PPP loans) is prohibited, and companies that applied with multiple lenders could face allegations for attempting to stack PPP loans. He allegedly certified that his business was operating as of February 15, 2020 (a requirement of the law) and had 247 employees, but didnt even set up a company entity until a few days before applying for the PPP loan. 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. Katie Quarterman, 28, of Atlanta, Georgia, Nikia Wakefield, 42, of Rockville, Maryland, and. Share sensitive information only on official, secure websites. The two allegedly worked together on the scheme (mighty neighborly of them!). With that kind of speed, no program could be perfect. Thomas sentencing is set for September 15. He then went on a luxury buying blitz acquiring a Lamborghini Urus, a Rolex watch, a 2020 Ford F-350 pickup truck, and real estate according to allegations. Game of Thrones Inspired These Fake Company Names (North Carolina September 29), 54. The banks internal auditors will then report it to the SBA faster than you can say oops, bad move.. Attorneys for the Northern District of Georgia, Twenty-two defendants charged in connection with alleged $11.1 million Paycheck Protection Program fraud scheme, https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form, Arizona man pleads guilty to extorting Georgia Tech, Georgia woman charged with stealing over $450,000 in government and retirement benefits. Allegations also claim he perpetrated a credit card scam on low-income patients by getting them to pay for medical expenses for services he did not fully render. Suite 600
References to a particular city or state other than Dallas, Houston, and Texas in any article or anywhere on this website does NOT mean that Firm maintains an office in that location, and it does NOT mean that Firm has attorneys physically located in that city or state. Brenizer was out on other criminal charges at the time, but he allegedly applied under another persons name. 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. no owner of a 20% or greater interest has been convicted of or pleaded guilty to a, Former Department of Justice Trial Attorneys, Former Federal Prosecutors, U.S. Attorneys Office. I appreciate your consideration/guidance/help/time. He allegedly laundered funds he received by writing checks for $8,330 each to 23 people. The only way to get more money than that is to either 1) claim to have employees that you didn't really have, or 2) inflate your earnings amount on the application. He is charged with false statements to a financial institution, bank fraud and engaging in unlawful monetary transactions. He allegedly obtained $200,000 in Paycheck Protection Program and Economic Injury Disaster loans and used the cash for personal expenses. The government wisely decided to move fast and let the justice system track down any miscreants. Darrell Thomas, 35, of Duluth, Georgia, pleaded guilty on June 16, 2021 to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering. - Federal Lawyer We Will Protect Your Rights, Reputation and Freedom. 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