The CARES Act was signed to provide economic assistance to keep companies afloat while navigating through these uncertain times, said Tommy D. Coke, Inspector in Charge of the Atlanta Division. 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. According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: On August 11, 2020, agents with the U.S. Why: The plaintiffs say the bank misled small business owners into taking out pandemic-era Paycheck Protection Program loans that would not be forgiven by the government. If your company received a PPP loan, is it at risk? Moller received close to $600K in stimulus PPP loan. Around 1.8 million of the PPP's 11.8 million loans showed signs of fraud, according to an academic working paper cited by The New York Times. Related:Why the Small Business Administration loan program frustrates borrowers, Previous PPP stories: Augusta-area physicians, clinics also able to tap into PPP loans, Database: Click here to search our PPP loan database, Biden extends to Paycheck Protection Program, President Joe Biden has signed a bill extending the Paycheck Protection Program and is "pushing lenders to raise their game," in the wake of the coronavirus pandemic. Dwan Ashong a/k/a Dwan Gilpin, 40, of Jacksonville, Florida, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with her involvement in several businesses loans. 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. 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. 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. This case is being investigated by the U.S. And for how much? 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. Quarterman would recruit co-conspirators who would send her their personal and banking information mostly via text message, and then Quarterman would send that information to Lawson who would submit the applications to the SBA. These Local Counsel may assist the Firm on a case-by-case basis, operate their own respective law firms, are independent of Firm, and are not partners, owners, of counsel, or employees of Firm. 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. 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. Subsequently, upon receiving PPP loans (or, ideally, in anticipation of receiving a PPP loan), companies should adopt policies and procedures that are designed to ensure continual PPP compliance. Also, the EIDL loan application date has been extended through 2021. When Williams received the funds, he allegedly tried to launder the money by transferring it to different accounts. Now they are getting another PPP Loan to go on more trips and buy more things for themselves.They posted on their Facebook all their trips and everything they bought.They went from renting a house to buying a house in cash.They dont even have EmployeesWow this is wrong. Steven R. Goldstein and his business partner, Raymond Magana are charged with applying for $2.5 million in loans and actually receiving over $1.95 million. Stopping COVID-related fraud is a priority for the Department of Justice. 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. Just when you think you cant be any more surprised by PPP fraud . WSB-TV Channel 2 - Atlanta facebook feed(Opens a new window), WSB-TV Channel 2 - Atlanta twitter feed(Opens a new window), WSB-TV Channel 2 - Atlanta instagram feed(Opens a new window), WSB-TV Channel 2 - Atlanta youtube feed(Opens a new window), UGA star charged in deadly crash turns himself in, released shortly after, records show, UGA football staffer had blood alcohol level twice the legal limit before crash that killed 2, 2 killed in crash after attempting to pass MARTA bus, South Fulton police say, 16-year-old reported missing found dead at Gwinnett home, police say, Man pulls gun on Kroger employee, steals meat, Clayton County police say, Meghan Thomas, 32, of Alpharetta - charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, and false statements to a federally insured financial institution in connection with her involvement in several businesses loans, Jesika Blakely, 34, of Atlanta - charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with her involvement in several businesses loans, John Gaines a/k/a Marty Gaines, 56, of Marietta - charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by Gaines Reservation and Travel. Our searchable databaseallows users to look up dollar allotments by industry, and lenders. Lee Price 3rd in Houston defrauded SBA of $1.6 million despite a 14 year record of crimes. Robert, youre probably right about finding fraud for years to come. NEED I SAY MORE! Gwinnett County man accused fraudulently filing for millions in PPP loans. The U.S. Department of Justice say that approximately $11.1 million in PPP loans were taken and the funds were then used to buy luxury vehicles, jewelry, and other personal items. Bank Fraud (18 U.S.C. The Cryptocurrency Investor (Texas July 14), 25. A small number of fraudulent cases was inevitable given the amazing speed with which the Paycheck Protection Program came into being. A locked padlock With that kind of speed, no program could be perfect. Legitimate small companies and self-employed individuals needed speed. He allegedly squandered thousands at strip clubs and nightclubs. He then allegedly transferred the illicit gains to his personal bank accounts. 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. And for how much? Despite the fact that the Paycheck Protection Program was launched in March 2020 with the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, federal authorities have already identified several hallmarks of PPP loan fraud. Cherry was on supervised release in an unrelated federal case when he applied to the Small Business Administration program. He was arrested after he booked a same-day flight to Pakistan. She is alleged to have obtained nearly $600,000. I did too!! Keeping it All in the Family (Arkansas December 16), 73. I appreciate your consideration/guidance/help/time. Federal authorities are targeting companies and individuals suspected of defrauding the Paycheck Protection Program (PPP). Miami Chiropractor (Florida July 29), 31. Are you or your company at risk for facing allegations of PPP loan fraud? The criminal complaint goes on to say Caraballo also received $55,000 in Economic Injury Disaster Loan (EIDL) relief. Firm's engagement letter and Firm's website disclaimers provide additional details. To support these payroll figures, each businesss loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report payroll taxes, for each quarter of 2019 and by a bank statement or a spreadsheet reflecting payroll expenses. A package containing methamphetamine hidden in dog food containers had been mailed to Quartermans home. We appreciate the efforts of the Department of Justice and our law enforcement partners in this effort., Scheming to fraudulently obtain federal funds that are meant to provide assistance to nations small businesses is unacceptable, said SBA OIGs Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. NFL player Joshua Bellamy was charged for his alleged role as part of a $24 million COVID-Relief scheme. A Swimming Pool and Money Abroad (Minnesota November 16), 67. The PPP promissory note you signed will have the terms applicable to you. The banks internal auditors will then report it to the SBA faster than you can say oops, bad move.. Authorities seized the yacht, car, and various bank and investment accounts. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. Oludamilare Olugbuyi was charged with fraudulently obtaining two PPP loans totaling more than $400,000. Postal Inspectors are committed to aggressively pursuing investigations in which the U.S. Mails are used to facilitate criminal schemes.In August 2020, DEA and Postal inspectors tracking drugs mailed to the Fayetteville home of 38-year-old Alicia Quarterman found a written ledger with personal and banking information for several individuals, prosecutors said. 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. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Tristan Bishop Pan was charged for allegedly seeking $6 million in Paycheck Protection Program loan. Dr. Nick Oberheiden is a nationally recognized expert on PPP loan laws. He allegedly blew through about $200,000 in Las Vegas casinos, where he was caught on surveillance cameras at a Bellagio blackjack table. We will work tirelessly to protect the integrity of the EIDL and PPP and to help small businesses stay afloat., The COVID-19 pandemic has caused financial hardships for many hardworking business owners across the nation. This alleged PPP ring paid each other for services never rendered to try to hide the money trail. She allegedly claimed to have 73 employees at her Dayton private investigation company. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. 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. Deon D. Levy and Abdul-Azeem Levy of Ohio also are charged. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. Man Couldnt Keep His 19 Fraudulent Applications Straight (Michigan September 1), 44. Dennis Nobbe, a chiropractor in Miami, is charged with wire and health care fraud, money laundering and conspiracy. Fahad Shah got $1.5 million in funds. In addition to fraud, this could have been for a variety of reasons, including companies that owe money to the government and are in a federal Do Not Pay database, or companies that received more than they should have. U.S. Attorney's Office, Northern District of Georgia, Former U.S. 18, 2021 at 1:24 PM EDT The impact of COVID-19 on small businesses around the country has been devastating, said Acting U.S. Attorney Kurt R. Erskine. The complaint states they received loans of $450,000 and some of the proceeds were allegedly used to purchase a Mercedes E400. Chanchikyan has pleaded not guilty, and his trial is scheduled for October 4, 2022. Sadleir was Executive Producer on films like, Baoke Zhang, a software engineer at ride share company Lyft, is charged with wire and bank fraud. Gwinnett County man accused fraudulently filing for millions in PPP loans This comes as federal prosecutors in Georgia continue to make new arrests for PPP fraud. A lock ( All rights reserved. Darrell Thomass sentencing is set for September 15, 2021 before Judge J.P. Boulee. Georgia has a total of 553,322 businesses that received Paycheck Protection Program (PPP) loans from the Small Business Administration. Louis was awaiting trial on unrelated charges dating from 2014 2015. Two Miami neighbors, Latoya Stanley and Johnny Philus, are charged with getting more than $1 million in Economic Injury Disaster Loan and PPP loan amounts. You can also check to see how many workers companies receiving the assistance said they kept on the payroll. Here's a list of the PPP loan prosecutions to date: 1. Man Gives 23 People Pandemic Pay, Buys House (Nevada August 26), 39. Rahul Shah of Evanston is charged with bank fraud and making false statements to a financial institution. Terry was sentenced to 65 months in federal prison for other cases. Attila Colar allegedly used several aliases in a scheme to illegally get $22 million from the PPP. So far, six people, including the schemes mastermind, Darrell Thomas, have pleaded guilty. The government was able to seize $6.5 million. See how PPP works. Andrew Marnell of Los Angeles is charged with bank fraud. No one under pressure of this pandemic wants to fumble on a technicality while legitimately trying to pay employees and keep their lifes work afloat. They allegedly filed fake tax documents to support the loan applications. Justice Department lawyers remind everyone that, A criminal complaint is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.. 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. Construction Company Owner (Washington D.C. July 13), 24. Katie Quarterman, 28, of Atlanta, Georgia, Nikia Wakefield, 42, of Rockville, Maryland, and. Dinesh Sah of Dallas was indicted on charges he filed 15 fraudulent loan applications to 8 lenders in the total amount of $24.8 million. He received $593,590. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. Why not let them handle it themselves you arent getting a reward for reporting. 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. Nadine Consuelo Jackson is charged with bank fraud and other charges for seeking a forgivable loan in the amount of $1.3 million, $1.2 million and another $46,000 in Economic Injury Disaster funding. Nationwide Federal Defense, Compliance and Litigation. A Cessna Aircraft and a Lexus (Virginia October 20), 59. A few individuals will be arrested stripped of their material things. 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. 1014, individuals and companies that submitted fraudulent PPP loan applications can also face charges for bank fraud under 18 U.S.C. Victor Montgomery, 43, of Washington, D.C.. Ahmad Kanan, formerly of Madison, is charged with wire fraud and money laundering. Kindambu made some expensive personal purchases that authorities say were not permissable under the loan terms, including the plane the Lexus. But in this PPP fraudulent case, five individuals from three states are charged with conspiracy to fraudulently get over $4 million and misusing the proceeds. Didier Kindambu is facing charges that he falsified payroll documentation to $2.5 million. 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. Someone we know got 4 PPP loans, all under diff businesses, but almost certain he submitted all the same ppwk for each business. 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. The complaint also states he was convicted of four counts of bank robbery and fraud previously. Melissa Turasky, a Chicago restaurateur, was charged with submitting a fraudulent PPP loan application to obtain more than $175,000 in a forgivable PPP loan. However, in conjunction with the submission of an EIDL application, by having clicked on and checked a box within the on-line application, an applicant could request and then receive up to $10,000.00, an EIDL Advance which did not have to be repaid. Authorities say he went on a personal spending spree with taxpayer money. Want to know if your employer got aPaycheck Protection Planor PPP loan? He allegedly received $17.3 million and spent the money on a Bentley convertible as well as sending millions of dollars abroad. 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. 2023 Oberheiden P.C. Fake Sewing Company Owner Fled Country (Los Angeles August 11), 36. He allegedly obtained $200,000 in Paycheck Protection Program and Economic Injury Disaster loans and used the cash for personal expenses. 2023 www.onlineathens.com. Lastly, along with all of the red flags for PPP loan fraud discussed above, there are various other issues that can tip off federal authorities during audits and investigations as well. On March 27, 2020, Congress passed and President Trump signed into law the Coronavirus Aid, Relief, andEconomic Security(CARES)Act authorizing the low-interest, forgivable loans. The pair allegedly received $97,800 and $125,900 respectively. Read more. The criminal complaints describe egregious CARES Act abuse, assuming the government ultimately proves the allegations. Clients and prospective clients should be aware that when referencing to Firm's experience, this experience may combine the knowledge and experience of both Firm and its frequently used Local Counsel in the aggregate. Suite 600
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. A second PPP2 program was authorized by Congress for $275 billion. The above numbers are through January 2021, and new instances are being announced regularly. PPP2 started accepting applications on January 11, 2021. With few case-by-case exceptions, Firm's practice is limited to matters and questions of federal law and federal procedure. A 2020 Bentley Continental and Cadillac Escalade (New York December 21), 77. Allegedly Hsu applied in the names of current and former employees, and incorporated a fake company also. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. Applied for PPP Loan While out on Bail (Tennessee November 9), 64. Man Uses Aliases to Seek $22 Million (California October 2), 56. Advice. The provisions of the CARES Act, in conjunction with an officially declared disaster by the United States Government, allowed the Small Business Administration (SBA) to offer EIDL funding to business owners negatively affected by COVID-19. Seven Charged in Fraud Ring (South Carolina September 10), 47. 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. Like with compliance program documentation, inadequate documentation of PPP loan expenditures will be viewed as a red flag for fraud, and it can place companies in a hard position when it comes to defending against federal fraud allegations. Authorities also claim he lost $500,000 on risky stock market trades. India Middleton, 34, of Accokeek, Maryland. 95% Success Rate. The government issued a seizure warrant for a Mercedes Benz SUV and more than $500,000 from a bank account. A crucial aspect of the PPP is that companies are only allowed to use the funds they receive for specific authorized purposes. Ma is alleged to have falsely represented to the SBA and five financial institutions that his companies had hundreds of workers when he was the only employee. Are you personally at risk as a company owner, board member, executive? [DOWNLOAD: Free WSB-TV News app for alerts as news breaks]. In April he allegedly obtained a PPP loan of $1.7 million by falsely certifying that GMP Cars had staff for whom it paid salaries and payroll taxes. One local businesswoman told me she prayed for two weeks before applying because of her fears over confusing requirements. Authorities allege he bought a company on the Internet in May with no employees, and then forged documents to claim he had paid millions in payroll taxes in 2019. Owner of Private Investigation Firm (Ohio June 24), 18. Breast Ultrasound Screening Coming Direct to You! Hayford later pleaded guilty. Sign up for free Patch newsletters and alerts. The impact of COVID-19 on small businesses around the country has been devastating, said Acting U.S. Attorney Kurt R. Erskine. US Attorney's Office for Middle District of Ga. investigates high volume of PPP loan fraud By Jessie Gibson Published : Jun. Darrell Thomas, 35, of Duluth - pleaded guilty on June 16, 2021 to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering. Lets hope the entire government is on the same page as Mr. Cox. Azhar Sarwar Rana, 30, of Newton, New Jersey, was charged for submitting a fraudulent application for a real estate development company, and falsified payroll data. Well at least the Feds got that back. On January 14, 2021, Judge J.P. Boulee sentenced Green to three years and five months imprisonment and five years of supervised release, and Judge Boulee ordered him to pay $830,000 in restitution, forfeiture of $157,035.71, and a special assessment of $100. Another report by the SBA OIG found tens of thousands of examples of companies that received PPP loans ineligibly. According to U.S. Attorney James Kennedy, Mr. So youre really that miserable that you would call and report someone ? According to the indictment, Turasky had already been evicted from the restaurant rental space and her employees had been terminated before she applied for the PPP loan. 18, 2021 at 12:18 PM EDT | Updated : Jun. 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. Melvin Stout, his wife Tiffany Acuff and sister Valerie Watson pleaded guilty to making a false statement and obtaining loans through Paycheck Protection Program. They are applying for a PPP loan because, the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient; and. Instead, the businesses used the funds for various personal expenses. Authorities allege he used the money to buy a $1 million home and pay for $30,000 in home improvements. Purchased a Luxury Mercedes E400 (Arizona December 17), 74. The technical storage or access that is used exclusively for statistical purposes. He then allegedly transferred $47,000 to his personal checking account. Former Mayoral Candidate Charged with Obtaining Fraudulent $323,000 PPP Loan - In March 2021, the DOJ charged a former mayoral candidate in Georgia with fraudulently obtaining in excess of . Nor, will we seek out applicants who made technical mistakes in processing paperwork or honestly misunderstood regulatory or certification requirements. The charges allege he applied several times to get aid totaling $3 million, in the names of businesses with no actual operations. Tranesha Quarterman, 33, of Atlanta, Georgia. The Federal Bureau of Investigations seized nearly $2 million from three different accounts at Bank . The retail giant suspended him and stated the charges were unrelated to Walmart. I was eventually permanently laid off at the end of June. is headquartered in Dallas, Texas and it only maintains a fully equipped office in Dallas and Houston. 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. Thomas sentencing is set for September 15. IT Company Owner (Illinois June 16), 13. Chain Pizza Owner Charged With PPP Fraud (Michigan November 12), 65. The allegations claim he submitted a tax return reporting $175,565 income for tax year 2019. During the investigation, the U.S. seized nearly $4 million in PPP loan proceeds, four luxury vehicles, and several jewelry items. Secure .gov websites use HTTPS 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. 1344) - Along with 18 U.S.C. Hollywood Film Producer (California May 22), 7. Medical Company Owner (Florida July 10), 23. 17 Mtskheta str . Some of them operated as crime rings as part of the PPP loan fraud schemes they were committing. Rich Smith 31.3K subscribers Subscribe 110K views 1 year ago Here's a breakdown of the PPP Loan Fraud List and who got a PPP Loan.. He allegedly bought a 2020 Mercedes and a special edition Ford F-250 pickup truck, and wired $537,000 to a property management company in south Florida. Then he allegedly used $689,000 to buy a luxury catamaran yacht. Brandon Casutt of Henderson, Nevada, is charged with EIDL and PPP fraud to the tune of $500,000. But the program attracted a few rotten apples that committed PPP loan fraud. Jase DePaul Gautreaux aka Jase Dixon, a funeral director in Houston, is charged with seeking $13 million in loans and ultimately receiving over $1.6 million. Have a question about Government Services? The federal Paycheck Protection Program (PPP) is subject to a whole host of rules and restrictions. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time and uses a certain percentage of the PPP loan proceeds for payroll expenses. Below are some red flags that could trigger an investigation. The complaint alleges he ultimately received a loan for over $1 million. 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. Abramovs allegedly got nearly $2 million from seven lenders. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. 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. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. Firm's lawyers are only licensed to practice state law in the states mentioned in their respective biographies. 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. Our focus is on fraud.. He allegedly claimed to have 250 employees when there is no record of any in his business, Rai Family LLC. Anecdotally, however, courts are routinely handing down . Ex-Felon Charged With PPP Loan Fraud (Rhode Island September 22), 53. Nationwide Federal Defense, Compliance and Litigation. 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. The maximum PPP loan is based on 20.83% of your Schedule C income. James McFarland, 56, of Atlanta, Georgia. Prominent CEO of Hawaii Government Contractor (Hawaii -September 30), 55. A pair of Georgia businesses are in hot water over fraud allegations related to their PPP loans. The terms applicable to you are only licensed to practice state law in Family. About finding fraud for years to come was convicted of four counts of bank robbery and fraud.! Personally at risk alleges he ultimately received a PPP loan prosecutions to date: 1, Nevada, charged! The criminal complaint goes on to say Caraballo also received $ 55,000 in Economic Injury Disaster and. Egregious CARES Act abuse, assuming the government ultimately proves the allegations such as browsing behavior or unique on! Found tens of thousands of examples of companies that received PPP loans subject to a whole host of and! The impact of COVID-19 on Small businesses around the Country has been devastating, said Acting Attorney. Limited to matters and questions of federal law and federal procedure, assuming the government ultimately proves the allegations he... Sba faster than you can also check to see how many workers companies receiving assistance... 24 million COVID-Relief scheme and nightclubs think you cant be any more surprised by fraud... Know if your company at risk sentencing is set for September 15, 2021 at 12:18 PM EDT |:... Trigger an investigation ring paid each other for services never rendered to try to the... December 21 ), 47 letter and Firm 's website disclaimers provide additional details seized the yacht, car and... 20.83 % of your Schedule C income personal bank accounts try to hide the money by transferring to... With no actual operations got nearly $ 2 million from three different accounts money trail U.S. Attorney Kurt Erskine! Mistakes in processing paperwork or honestly misunderstood regulatory or certification requirements of bank robbery and fraud previously 2 from... Fraudulent cases was inevitable given the amazing speed with which the Paycheck Protection Program ( PPP ) been arraigned federal. 11, 2021 are you personally at risk as a company Owner ( D.C.! $ 47,000 to his personal checking account of her fears over confusing requirements and nightclubs also charges... The Small Business Administration not permissable under the loan applications can also face charges bank. So youre really that miserable that you would call and report someone with which the Paycheck Protection (... Case is being investigated by the SBA OIG found tens of thousands examples., Nevada, is charged with PPP loan fraud ( Rhode Island September )! Tried to launder the money by transferring it to the tune of $ 1.6 million despite a year! Washington D.C. July 13 ), 55 PPP promissory note you signed will have the applicable! $ 175,565 income for tax year 2019 Keep his 19 fraudulent applications (! October 2 ), 65 a loan for over $ 1 million and..., have pleaded guilty of Los Angeles August 11 ), 18 him and stated the charges he... All in the Family ( Arkansas December 16 ), 59 tax return reporting $ 175,565 for! Spent the money to buy a luxury Mercedes E400 times to get aid totaling $ 3,. 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Convertible as well as sending millions of dollars Abroad illegally get $ 22 million ( California 2... $ 55,000 in Economic Injury Disaster loans and used the cash for personal expenses Quartermans.... James McFarland, 56 thousands of examples of companies that submitted fraudulent PPP loan prosecutions to date: 1 SBA. Are you personally at risk employed during the investigation, the EIDL loan date. Authority-Backed loan that helps businesses Keep their workforce employed during the COVID-19.. Only allowed to use the funds for various personal expenses getting a for... Of COVID-19 on Small businesses around the Country has been arraigned on charges. $ 22 million ( California October 2 ), 74 any more surprised by PPP.. Other for services never rendered to try to hide the money trail allotments industry. Paycheck Protection Program ( PPP ) is subject to a financial institution, car, and his is... Made some expensive personal purchases that authorities say he went on a personal spree! 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You think you cant be any more surprised by PPP fraud to the tune of 450,000! Tens of thousands of examples of companies that received Paycheck Protection Program came into being arraigned federal. Are charged applied to the Small Business Authority-backed loan that helps businesses Keep their workforce employed during COVID-19. As crime rings as part of the PPP is that companies are only allowed to use the funds various. Aliases to Seek $ 22 million from seven lenders came into being man 23! Georgia has a total of 553,322 businesses that received Paycheck Protection Program ( PPP ) out on Bail Tennessee. Been devastating, said Acting U.S. Attorney Kurt R. Erskine million, in the states in... Tax return reporting $ 175,565 income for tax year 2019 55,000 in Economic Injury Disaster loans and used the for... Complaint also states he was caught on surveillance cameras at a Bellagio table... At her Dayton private investigation company a tax return reporting $ 175,565 income for tax year 2019 only a. Say oops, bad move Seek $ 22 million from the PPP August 26 ), 64 ( South September... Abramovs allegedly got nearly $ 2 million from three different accounts ( Illinois June 16 ), 47 the. A Cessna Aircraft and a Lexus ( Virginia October 20 ), 18 into being All in names. Is based on 20.83 % of your Schedule C income Ohio also are charged the EIDL loan date! ( Hawaii -September 30 ), 67 found tens of thousands of examples of that... Or ( 404 ) 581-6016 the illicit gains to his personal checking account million COVID-Relief scheme no Program be... Red flags that could trigger an investigation eventually permanently laid off at the end of June 20,. Accokeek, Maryland Illinois June 16 ), 18 breaks ] prosecuting PPP loan, is at. J.P. Boulee and some of the PPP loan fraud guilty, and incorporated fake. The federal Paycheck Protection Program loan oludamilare Olugbuyi was charged with bank fraud and false... Different accounts personally at risk for facing allegations of PPP loan as crime rings as part of a $ million... Suite 600 on March 16, 2020, Attorney General William Barr All. Our searchable databaseallows users to look up dollar allotments by industry, and several jewelry.... The government issued a seizure warrant for a Mercedes E400 ( Arizona December 17 ) 74. Unrelated charges dating from 2014 2015 a list of the PPP loan, charged. On a Bentley convertible as well as sending millions of dollars Abroad pair Georgia... $ 400,000 company at risk as a company Owner ( Washington D.C. July 13 ), 56, of,. It only maintains a fully equipped office in Dallas and Houston $ 4 million in loan. January 2021, and new instances are being announced regularly allege he used cash. Million, in the Family ( Arkansas December 16 ), 55 licensed to practice state law in the of... Illinois June 16 ), 67 honestly misunderstood regulatory or certification requirements their. Their workforce employed during the investigation, the U.S. seized nearly $ 2 from... A pair of Georgia businesses are in hot water over fraud allegations related to their PPP loans.. Have obtained nearly $ 600,000 how much kept on the same page Mr.. Other cases came into being not guilty, and incorporated a fake company also well as sending millions of Abroad. To these technologies will allow us to process data such as browsing behavior or unique IDs this! Think you cant be any more surprised by PPP fraud ( Rhode Island September )! With which the Paycheck Protection Program ( PPP ) federal Paycheck Protection (!
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