Through January 2021, the DOJ and United States Attorneys have filed PPP loan fraud schemes cases charging over 140 defendants with attempting to bilk taxpayers. Why not let them handle it themselves you arent getting a reward for reporting. 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.. 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. Florida Man Buys 40-foot Catamaran (Florida September 1), 43. 18, 2021 at 12:18 PM EDT | Updated : Jun. The DOJ has already initiated multiple federal cases against individuals alleged to have converted PPP loan funds for personal use, and in these cases the defendants are facing hefty fines and years, if not decades, of federal imprisonment. 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. U.S. Attorney's Office, Northern District of Georgia, Former U.S. Legitimate small companies and self-employed individuals needed speed. Aditya Raj Sharma, the founder and former CEO of Crosscode Inc., a cloud-based software development company, was charged with misrepresenting facts to get a PPP loan. Researchers estimate that $76 billion in PPP loan money was taken illicitly. Hollywood Film Producer (California May 22), 7. These purposes include the payment of payroll and related expenses, the payment of insurance premiums, the payment of rent and mortgage interest under pre-existing obligations, and the payment of business utility bills. (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. Its a wild tale. A small number of fraudulent cases was inevitable given the amazing speed with which the Paycheck Protection Program came into being. 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. 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. Also, the EIDL loan application date has been extended through 2021. The defendants are charged with using fake and stolen identifies to apply for 35 CARES Act loans. The criminal complaints describe egregious CARES Act abuse, assuming the government ultimately proves the allegations. The Small Business Administration has released a list of businesses that have received emergency pandemic loans. 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. Sadleir was Executive Producer on films like, Baoke Zhang, a software engineer at ride share company Lyft, is charged with wire and bank fraud. Atlanta, GA 30303-3309. Related coverage:Treasury names 650K small businesses receiving govt loans. The overwhelming majority of owners who received PPP loans legitimately used the money to retain employees and stay operational. Lets hope the entire government is on the same page as Mr. Cox. 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. The FBI apprehended Monica Jaworska and her husband Tarik Jaafar at JFK Airport allegedly attempting to flee to Poland. 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. What to do if the SBA doesnt forgive your loanhttps://www.schwabe.com/newsroom-publications-a-guide-to-the-sba-ppp-loan-forgiveness-review-process. Former Senior Trial Attorney U.S. Department of Justice, Former U.S. Attorney & Former District Attorney. He got up to $5.7 million in loans. The False Claims Act can impose steep financial penalties, including treble damages. Authorities say he put the PPP loan proceeds in accounts under the control of his relatives and minor children. After receiving the loans, he bought a $480,000 , spent $50,000 to $200,000 on a lost gambling bet, bought a brand new speedboat worth about $150,000, he also bought Martina D****la a $900 pair of shoes for her 23rd birthday. 95% Success Rate. 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 two allegedly worked together on the scheme (mighty neighborly of them!). The charges allege he applied several times to get aid totaling $3 million, in the names of businesses with no actual operations. Stopping COVID-related fraud is a priority for the Department of Justice. Postal Inspectors are committed to aggressively pursuing investigations in which the U.S. Mails are used to facilitate criminal schemes.. NOTICE: Prior results do not guarantee similar outcomes; attorney advertising. Read more. The Feds froze his bank account and recovered $402,000. 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. Related coverage: Consolidated Augusta government's American Rescue Plan payment doubles to $84 million. Agents from the FDIC OIG, SBA OIG and IRS-Criminal Investigation (CI) investigated. In another unusual burst of government speed, the SBA and Treasury Secretary Steven Mnuchin started accepting loan recipients applications just a week later on April 3, 2020. Fourteen additional defendants were charged in a First Superseding Indictment unsealed on Wednesday, July 14, 2021: Three additional defendants have been charged by Criminal Information: Six defendants have pleaded guilty based on their roles in the fraudulent scheme since the original indictment was returned on August 4, 2020, including the mastermind, Darrell Thomas, and one defendant has been sentenced to date: Members of the public are reminded that the indictment contains only charges. ("Firm") works with affiliated lawyers (referred to as "Local Counsel") in various cities and states across the United States. Nationwide Federal Defense, Compliance and Litigation. 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. Man Uses Forgery to Get EIDL and PPP Loans (North Carolina August 25), 38. 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. Share sensitive information only on official, secure websites. Along with its application requirements, the CARES Act also establishes requirements for how companies use, and account for the use of, PPP loan funds. Sum of Current Approval Amount. To speak with one of our senior federal compliance and defense attorneys in confidence, call 888-680-1745 or request a free PPP risk assessment online now. Six individuals, including the schemes mastermind, Darrell Thomas, have pleaded guilty. Heres a list of the PPP loan prosecutions to date: 1. 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. Sum of Undisburse Amount. If your company received a PPP loan, is it at risk? 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. Our searchable databaseallows users to look up dollar allotments by industry, and lenders. PPP Loan Fraud List | Who Got a PPP Loan? To this end, all companies that received PPP loans would be well-advised to proactively conduct an internal PPP compliance investigation. This case is being investigated by the U.S. 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. Authorities say he went on a personal spending spree with taxpayer money. If there is evidence of fraud, people can go to jail for a $20,000 PPP loan, just like someone whose PPP loan was $100,000 or $1 million. Some of the law enforcement agencies involved in investigating are: The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; Small Business Administration Office of Inspector General (SBA-OIG); Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), and the FBI. The case was brought in Los Angeles, California. He allegedly obtained $841,000 in PPP funds for a defunct contracting company with no employees, called True-Cut. If the PPP debt is not forgiven, the interest rate is very low 1%. They allegedly filed fake tax documents to support the loan applications. Rahul Shah of Evanston is charged with bank fraud and making false statements to a financial institution. All information on this website has been prepared for informational purposes only and does not constitute legal advice. Owners of Chain of Nail Salons (New York December 10), 71. Use our searchable database to see who in Georgia received funds. Surely the government does a personal credit check on the owner unless he falsified his identity. Authorities claim he also invested millions in the stock market in the name of his spouse. The applications stated that each business had between 59 and 69 employees in February 2020 and averaged approximately $295,000 to $342,000 in monthly payroll expenses. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Have a question about Government Services? Following a nine-day trial, Ahamefule Aso Odus has been convicted by a federal jury on 12 counts of money laundering stemming from his role in a massive money laundering operation Northern District of Georgia Benjamin Hayford is charged with fraud for seeking $4.4 million in PPP financing. 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. Thissearchable website looks at which companies got money from last year's federal program to help businesses retain their workers amid the pandemic economic shutdown. Then turns around and starts writing checks to Lamborghini dealerships. While the government is helping those in need, law enforcement is swiftly addressing these vulnerabilities. Ex-Microsoft Executive (Washington July 23), 28. Apparently one tim isnt enough for some people. Through August 8, 2020, when the first Paycheck Protection Program PPP program closed, the SBA approved 5,212,128 loans. When the SBA-OIG or DOJ launches an investigation, executing an effective and timely defense is imperative. Investigations by the DOJ and U.S. Attorneys for the Northern District of Georgia, 10 defendants indicted in multi-state, fraudulent COVID-19 related business loan scheme, Arizona man pleads guilty to extorting Georgia Tech, Georgia woman charged with stealing over $450,000 in government and retirement benefits. With that kind of speed, no program could be perfect. The Department suggests that "criminal rings" are orchestrating this fraud, without providing any real details. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts, For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. 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. Share sensitive information only on official, secure websites. The defendants are charged with various counts of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering. Kao allegedly transferred $2 million to personal accounts. 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. I appreciate your consideration/guidance/help/time. A $106K Mercedes and a Ford F-250 (Florida October 23), 61. Several individuals he submitted payroll documentation for said they never worked for his company, investigators allege. Luckily, the Feds have recovered a large part of the loan proceeds already, although millions is forever gone. It is alleged he got over $190,000 in proceeds and managed to withdraw cash or cashiers checks for $140,000. Ophthalmologist Already Under Indictment (New York June 24), 19. 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. Oberheiden P.C. Auto Repair Shop Owner (California June 5), 11. Its easy to take risks on day trading and gambling when youre using taxpayer money. The borrower gets the PPP loan funds into their bank account. U.S. Attorney's Office, Northern District of Georgia, Former U.S. Nationwide Federal Defense, Compliance and Litigation. Elijah Majak Buoi, president of Sosuda Tech LLC, is charged with fraudulently applying for over $13 million in PPP aid. 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 also allegedly was involved in a scheme claiming to represent the New York State Government in procuring COVID-19 test kits. In July, the Feds seized $866,019 from his bank accounts. He also allegedly submitted forged tax documents. The charges allege the usual. 75 Ted Turner Dr. SW Diamond Blue Smith, a recording artist, is charged with being part of the nationwide $24 million scam ring mentioned above. Amanda Christian, 33, of Blythewood, South Carolina, is 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 the loan obtained by her business, Advertising and Then Some Inc., and several other businesses loans. Louis was awaiting trial on unrelated charges dating from 2014 2015. 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. 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. Married Couple Attempting to Flee (Virginia June 24), 17. 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. Most of the funds are going to help the nations 31 million small businesses. Main Office: On average, companies that received a loan got $101,000 according to SBA data. Have we seen the last of Paycheck Protection Program PPP loan fraud prosecutions? 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. After two banks declined, Rowberry allegedly said she would help him re-apply through a friend. Millions of Americans eventually will apply for forgiveness. Depending on the charges, penalties could include up to $1 million in fines and up to 30 years in prison, legal experts say. And the DOJ has made it a priority to root them out. However, we have created a list of PPP resources that should help you with any challenges that you might have. She is alleged to have obtained nearly $600,000. Darrell Thomass sentencing is set for September 15, 2021 before Judge J.P. Boulee. Someone we know got 4 PPP loans, all under diff businesses, but almost certain he submitted all the same ppwk for each business. The government wisely decided to move fast and let the justice system track down any miscreants. Rodericque Thompson allegedly recruited Micah Baisden, Travis Crosby, Keith Maloney, Tabronx Smith, and Thomas Wilson to apply for PPP loans on behalf of their respective business, per law enforcement. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. 4 Of The Best Ice Cream Spots In The Atlanta Area Vegan, Too! Acting U.S. Attorney Audrey Strauss said, Goyal allegedly looted over $630,000 in federal funds earmarked for legitimate small businesses in dire financial straits.. Honestly, I think theyll be finding and prosecuting these for years. Celebrities, entertainers and business leaders are among 19 people recently indicted in Georgia on charges that they defrauded the Paycheck Protection Program for a total of more than $3 million. 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. 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. Karen Chapon, aka Karen Hannafious, of Las Vegas is charged with allegedly filing six fraudulent loan applications. Former Police Officer Sentenced For Money Laundering. He allegedly applied for $441,000 under the Federal Paycheck Protection program. A Bentley Convertible and a Jaw Dropping Scheme (Texas October 9), 58. Even if only one PPP loan was obtained, attempting to obtain more than one loan can still lead to criminal prosecution. An official website of the United States government. Ganell Tubbs, the entrepreneur owner of Little Piglet Soap Company and Suga Girl Customs, an Etsy shop, is charged with fraudulently obtaining nearly $2 million in PPP loan. Hopefully someone will find this. Uzoamaka Leonard Ohaebosim was charged for allegedly falsifying payroll documents to obtain $1.2 million for his movie company, Spite the Movie. Law enforcement recovered all the proceeds. Look up the extravagant purchases of the nations record setting check kiter Adam W****man. 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. 1344) - Along with 18 U.S.C. The criminal complaint goes on to say Caraballo also received $55,000 in Economic Injury Disaster Loan (EIDL) relief. All rights reserved. Check with your attorney and/or accountant with questions. According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: On August 11, 2020, agents with the U.S. Authorities seized the yacht, car, and various bank and investment accounts. He got $5.6 million and sent hundreds of thousands of dollars to Pakistan accounts, and paid for luxury items. [DOWNLOAD: Free WSB-TV News app for alerts as news breaks]. To provide the best experiences, we use technologies like cookies to store and/or access device information. John Gaines a/k/a Marty Gaines, 56, of Marietta, Georgia, is 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. Michael C. Moller was charged with fraudulently seeking $4.7 million in PPP forgivable loan that he applied for in the name of various people including his father, girlfriends brother and girlfriends son. A Cessna Aircraft and a Lexus (Virginia October 20), 59. Its bad enough when one person tries to defraud taxpayers. Court documents identify 3 confidential human sources, i.e., informants. She allegedly claimed to have 73 employees at her Dayton private investigation company. Federal authorities are targeting companies and individuals suspected of defrauding the Paycheck Protection Program (PPP). 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. 2023 Oberheiden P.C. Richard Ayvazyan, Marietta Terabelian, Artur Ayvazyan, Tamara Dadyan were charged in a complaint claiming they conspired together as part of a disaster relief loan fraud ring based in Los Angeles.