Former Catholic Archdiocese Employee (Washington, D.C. August 11), 35. He was arrested after he booked a same-day flight to Pakistan. The defendants are charged with various counts of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering. She allegedly claimed to have 73 employees at her Dayton private investigation company. The bank recalled one loan and the Government seized funds for the other two. Lee Price III is charged with making false statements to a financial institution, wire and bank fraud and engaging in unlawful monetary transactions. Ex-Microsoft Executive (Washington July 23), 28. The charges allege the usual. 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. So far, six people, including the schemes mastermind, Darrell Thomas, have pleaded guilty. Their alleged greed affects every American taxpayer, and the FBI is making every effort possible to stop it and make sure PPP funds are used as intended., When tragedy strikes and citizens find themselves in a vulnerable situation to no fault of their own, the influx of government assistance unfortunately also attracts criminals, said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. Diamond Blue Smith, a recording artist, is charged with being part of the nationwide $24 million scam ring mentioned above. 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. They do not appear to be honest mistakes. He ultimately received over $2 million but the government seized $1.98 million from business bank accounts. The defendants are accused of submitting at least 14 fraudulent loan applications around April-August 2020 in attempts to get more than $14.7 million, the DOJ said. How to apply for a loan on your ownhttps://bench.co/blog/operations/how-to-apply-first-ppp-loan/ He also allegedly squandered cash at luxury retailers and Miami resorts. 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. Bank Fraud (18 U.S.C. NFL player Joshua Bellamy was charged for his alleged role as part of a $24 million COVID-Relief scheme. Government money always attracts a small number of fraudsters, grifters, and criminals. One local businesswoman told me she prayed for two weeks before applying because of her fears over confusing requirements. 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. Share sensitive information only on official, secure websites. 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. The government wisely decided to move fast and let the justice system track down any miscreants. The complaint alleges he ultimately received a loan for over $1 million. To date, a total of 22 individuals have been charged in connection with the fraudulent scheme. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. He got up to $5.7 million in loans. $1,659,747. Suite 600 Charges were recently brought against several celebrities, entertainers and business leaders in Georgia for allegedly defrauding the Paycheck Protection Program for a total of more than $3. Keeping it All in the Family (Arkansas December 16), 73. They are accused of using the cash for personal purchases including a Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover. 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. Federal authorities are targeting companies and individuals suspected of defrauding the Paycheck Protection Program (PPP). No. A few individuals will be arrested stripped of their material things. Businesses that have to repay the loan get 2 years to repay if funding was issued before June 5. Under the CARES Act, companies are only eligible to receive one PPP loan from one lender at a time. Joshua Thomas Argires of Houston was arrested on various fraud charges. When arrested, he had almost $80,000 in cash at his home and $9,400 in his pocket, authorities claim. According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: On August 11, 2020, agents with the U.S. A package containing methamphetamine hidden in dog food containers had been mailed to Quartermans home. Florida Man Buys 40-foot Catamaran (Florida September 1), 43. Luckily, the Feds have recovered a large part of the loan proceeds already, although millions is forever gone. The Feds managed to freeze most of the cash but not before the couple allegedly withdrew $30,000 in cash. 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. Share sensitive information only on official, secure websites. (Shutterstock) ATLANTA Federal fraud charges were filed against. He allegedly was caught on camera withdrawing cash. Its going to raise a red flag. 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. NFL Player Blows 62 Grand at the Hard Rock Casino (Florida September 10), 49. She deposited the proceeds into four bank accounts, but that didnt hide it from authorities who seized her ill-gotten gains. Assistant U.S. Attorney Miguel R. Acosta is prosecuting the case. Fayne allegedly claimed he had 107 workers and submitted forged bank statements. 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. Reality TV Personality (Georgia May 13), 4. This comes as federal prosecutors in Georgia continue to make new arrests for PPP fraud. Nor, will we seek out applicants who made technical mistakes in processing paperwork or honestly misunderstood regulatory or certification requirements. 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. 1344. Wells Fargo previously fired him for embezzlement, according to news reports. Attorney Buys Million Dollar Home (New Jersey September 2), 45. Copyright 2003 - 2023, Small Business Trends LLC. According to prosecutors, the defendants allegedly submitted, or assisted in submitting, PPP loan applications for 14 businesses between April and August 2020. Sum of Initial Approval Amount. Claimed to Have Paid 100 Employees (Florida September 17), 52. Advice. 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 loan applicants forgiveness process is bound to trigger another round of scrutiny. An official website of the United States government. Medical Company Owner (Florida July 10), 23. Apparently one tim isnt enough for some people. Its easy to take risks on day trading and gambling when youre using taxpayer money. ("Firm") works with affiliated lawyers (referred to as "Local Counsel") in various cities and states across the United States. Robert, youre probably right about finding fraud for years to come. And you wont believe how rotten they are. You can also check to see how many workers companies receiving the assistance said they kept on the payroll. This has caused some entrepreneurs, employers and owners to think twice about applying. In fact, the majority (68%) of the loans were under $50,000, which sounds right for most small businesses which tend to be pretty small, and the self-employed. 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. 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. Defunct Chicago Restaurateur (Illinois August 28), 42. However, the Government watchdog also recommended oversight of the 4 million smaller loans. Allegedly he submitted fake IRS 1099 Forms containing worker social security numbers that were invalid. 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. This alleged PPP ring paid each other for services never rendered to try to hide the money trail. 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. Forged account statements. 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. 90 PPP Applications in This Fraud Ring (Ohio and Florida August 6), 33. 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. These are significant questions, and they are questions that you need to answer sooner rather than later. The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law passed in March 2020 that provided $2.2 trillion dollars in emergency financial assistance to the millions of Americans who are suffering the economic effects caused by COVID-19. The GAO also recommended auditing COVID-19 unemployment benefits paid to workers rehired through the loans. Law enforcement assisting in the investigation included the Small Business Administration OIG office, the FBI, FDIC and others. The impact of COVID-19 on small businesses around the country has been devastating, said Acting U.S. Attorney Kurt R. Erskine. Fewer than 150 defendants out of of over 5.2 million loans is a minuscule percentage. According to the U.S. Official websites use .gov The complaint alleges George provided false and misleading documents and apparently couldnt keep his fake employees straight. 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. Six individuals, including the schemes mastermind, Darrell Thomas, have pleaded guilty. Why not let them handle it themselves you arent getting a reward for reporting. 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. According to the SBA, the Paycheck Protection Program ended on May 31, 2021. Richard B. Russell Federal Building Amir Aqeel, Siddiq Azeemuddin, Rifat Bajwa, Pardeep Basra, Mayer Misak, Maurico Navia, and Richard Reuth allegedly participated together in filing more than 80 fraudulent Paycheck Protection Program applications for $16 million. 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. IT Company Owner (Illinois June 16), 13. Cherry was on supervised release in an unrelated federal case when he applied to the Small Business Administration program. 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. A minuscule percentage the case but the government seized $ 1.98 million from bank. Of the cash but not before the couple allegedly withdrew $ 30,000 in cash luckily, the,! 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