Have we seen the last of Paycheck Protection Program PPP loan fraud prosecutions? The defendants allegedly abused both programs by submitting fraudulent applications and obtaining thousands of dollars that should have gone to support struggling businesses. 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. Tonye Johnson was also charged with getting a PPP loan of $389,627and paying a portion of the loan proceeds to his co-conspirators. Sum of Current Approval Amount. The overwhelming majority of small businesses have no allegations of Paycheck Protection Program fraud. While egregious and clear misuse of PPP loan funds presents a clear risk, expenditures that blend business and personal purposes (i.e. The COVID-19 pandemic has caused financial hardships for many hardworking business owners across the nation. 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. Larry Jordan and Sutukh El, two brothers, are charged with fraudulent PPP loan applications to the tune of $7 million, and actually receiving over $600,000. More than 15% of PPP loans had at least one indication of potential fraud. 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.. The case was brought in Los Angeles, California. Walmart Project Manager (Oklahoma June 4), 10. Ex-Felon Charged With PPP Loan Fraud (Rhode Island September 22), 53. Main Office: 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? Nor, will we seek out applicants who made technical mistakes in processing paperwork or honestly misunderstood regulatory or certification requirements. He also allegedly was involved in a scheme claiming to represent the New York State Government in procuring COVID-19 test kits. The loan applicants forgiveness process is bound to trigger another round of scrutiny. All rights reserved. Inadequate or questionable documentation submitted in support of a request for PPP loan forgiveness is another huge red flag, and companies accused of submitting fraudulent forgiveness requests can face a variety of federal charges.. The impact of COVID-19 on small businesses around the country has been devastating, said Acting U.S. Attorney Kurt R. Erskine. $1,659,747. Justice Department representatives say honest owners acting in good faith shouldnt worry. Below are some red flags that could trigger an investigation. Acting U.S. Attorney Kurt Erskine issued an update on his office's efforts to combat fraud related to schemes targeting the Paycheck Protection Program (PPP), a loan program created by Congress to help small businesses pay payroll, interest on mortgages, rent, and utilities during the COVID-19 pandemic. Surely the government does a personal credit check on the owner unless he falsified his identity. Fahad Shah got $1.5 million in funds. Meghan Thomas, 32, of Alpharetta, Georgia, 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 several businesses loans. We can use our experience to help reduce your companys risk (and your personal risk) to the fullest extent possible, and we encourage you to contact us for a free and confidential assessment of your companys legal needs. Didier Kindambu is facing charges that he falsified payroll documentation to $2.5 million. Lyft Software Engineer (Washington May 22), 9. That didnt stop him from allegedly applying for two PPP loans using different company names. Oberheiden P.C. Court documents identify 3 confidential human sources, i.e., informants. 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. The banks internal auditors will then report it to the SBA faster than you can say oops, bad move.. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. A former Georgia mayoral candidate in charge of a nonprofit claiming to assist low-income families spent $323,000 in loans she received from the Paycheck Protection Program (PPP) on an in-ground . I was not hired back. 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. How does the government miss a well know con artist? 95% Success Rate. Through August 8, 2020, when the first Paycheck Protection Program PPP program closed, the SBA approved 5,212,128 loans. 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. The complaint alleges George provided false and misleading documents and apparently couldnt keep his fake employees straight. 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. Chinese Man Found Guilty Of $20 Million Dollar PPP Fraud Scheme Chinese national who lived in New York pled guilty in connection with a fraudulent scheme to obtain over $20 million. Small Business Trends is an award-winning online publication for small business owners, entrepreneurs and the people who interact with them. Buoi allegedly misrepresented how many wokers he had and that the United States was their primary residence (required). 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. According to the SBA, thePaycheck Protection Program ended on May 31, 2021. Terry was sentenced to 65 months in federal prison for other cases. 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. 1349, individuals and companies charged with attempt can face the same penalties that apply to the successful completion of a criminal offense (i.e. Suite 600 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. Phillip J. Augustin of Coral Springs, Florida, is accused of using his talent management agency and connections with professional athletes to engage in an alleged fraud of breathtaking scale, involving 90 PPP loan applications and $17.4 million. 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. 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. Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBAs vital economic programs. Again, thorough documentation is imperative, and companies must ensure that all relevant internal personnel are clear about the types of activities that can increase the companys risk of liability in the event of a PPP loan fraud audit or investigation. 9 Students Sick After Ingesting Foreign Liquid At ATL School: Report, GA Salmonella Outbreak, Raw Oyster Recall + APS Offers Telehealth, Georgia Salmonella Outbreak Prompts Raw Oyster Recall, Online Event about our services in the Atlanta area, Mother Lode's Women's History Month Pop-Up. An 18-Room Tuscan Mansion on the Taxpayer Dime (New York September 17), 51. Luckily, the Feds have recovered a large part of the loan proceeds already, although millions is forever gone. Another report by the SBA OIG found tens of thousands of examples of companies that received PPP loans ineligibly. Principal Deputy Assistant Attorney General Ethan P. Davis noted in a June 26th speech: When the borrower is ready to seek forgiveness of the loan, it has to certify that the funds were in fact used to pay costs that are eligible for forgiveness. NEWNAN, Ga. - Ten defendants, who operated as part of a larger group, have been indicted for participating in a wide ranging, multi-state scheme to submit fraudulent loan applications on behalf of non-existent businesses as part of the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). Six people were charged by indictment in this ring spanning two states. Michael Bischoff, the CEO and co-founder of a Michigan chain called Passport Pizza, allegedly falsified documents and employees to obtain $931,000 in PPP money. Under the terms of the program, for example, companies must represent that: During a federal PPP loan fraud audit or investigation, federal agents will not just be looking to assess loan recipients eligibility, but they will also be looking to determine whether companies have documentation on hand to qualify the representations they made in their PPP loan applications. 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. Instead, the businesses used the funds for various personal expenses. 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. Report fraud/thefthttps://www.sba.gov/funding-programs/loans/covid-19-relief-options/report-id-theft-fraud A package containing methamphetamine hidden in dog food containers had been mailed to Quartermans home. In connection with the investigation, the United States seized nearly $4 million in PPP loan proceeds, four luxury vehicles, and several jewelry items. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. Lauren Marcel Duhart, Joshua Bernard Smith, Steve Ronald Lewis, Christopher J. Agard, Henry Duffield, Jeremy Brandon Latourneau, Derick Keane were charged in an indictment with laundering $750,000 obtained fraudulently, including over $390,000 from a PPP loan. 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. Agriculture, Forestry, Fishing and Hunting. Moller received close to $600K in stimulus PPP loan. 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. Glad theyre doing the work to clean it up and recover some of these funds. The pair are charged with submitting 18 fraudulent Paycheck Protection applications with false payroll tax returns, and receiving $1.4 million. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. 18, 2021 at 1:24 PM EDT [SIGN UP: WSB-TV Daily Headlines Newsletter]. Secure .gov websites use HTTPS Goldstein allegedly transferred $355,000 in his personal bank account. The borrower gets the PPP loan funds into their bank account. Abramovs allegedly got nearly $2 million from seven lenders. The government was able to seize $6.5 million. 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. Authorities claims Yates used a name generator on the Internet to create names of fake staff. Which goes to show that most of the defendants arent very smart. Sum of Initial Approval Amount. Ultimately Ugarte received funds from Transportation Alliance Bank. The complaint alleges Smith bought a $96K Ferrari and other luxury items and withdrew $271,805 in loan proceeds. India Middleton, 34, of Accokeek, Maryland. The charges allege he applied several times to get aid totaling $3 million, in the names of businesses with no actual operations. How to apply for a loan on your ownhttps://bench.co/blog/operations/how-to-apply-first-ppp-loan/ Law enforcement assisting in the investigation included the Small Business Administration OIG office, the FBI, FDIC and others. On August 9, Manukyan allegedly boarded a flight from Mexico City to Belarus. 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. Charmaine Redding, pleaded guilty on July 14, 2021 to one count of conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc. Reddings sentencing is set for October 21, 2021 before Judge J.P. Boulee. He got $5.6 million and sent hundreds of thousands of dollars to Pakistan accounts, and paid for luxury items. Six individuals, including the schemes mastermind, Darrell Thomas, have pleaded guilty. A $106K Mercedes and a Ford F-250 (Florida October 23), 61. Claimed to Have Paid 100 Employees (Florida September 17), 52. 17 Mtskheta str . With few case-by-case exceptions, Firm's practice is limited to matters and questions of federal law and federal procedure. Tiara Walker was charged with conspiracy and fraud charges involving a crime ring that prepared at least 90 fraudulent applications and attempted to get $24 million, ultimately receiving $17.4 million dollars. Besides Alicia Quarterman, 38, of Fayetteville, Georgia, and Katrina Lawson, 41, of Houston, Texas, the following individuals also participated in the scheme and are charged in the indictment: Overall, between July 1, 2020 and August 11, 2020, Quarterman sent Lawson the information for about 48 different individuals, and she allegedly completed approximately 58 fraudulent EIDL applications, seeking $490,000. He then went on a buying extravaganza, spending on a Tesla, a Bentley, two condominiums, and paying his home mortgage. Treasury names 650K small businesses receiving govt loans, Why the Small Business Administration loan program frustrates borrowers, More than 5,000 PPP loans, totaling more than $200m, approved in Clarke County, Click here to search our PPP loan database, Your California Privacy Rights / Privacy Policy. Joshua Thomas Argires of Houston was arrested on various fraud charges. Have a question about Government Services? He allegedly used some of the cash to pay off $80,000 in personal credit cards and a $40,000 car loan. He was arrested after he booked a same-day flight to Pakistan. The attempted fraud is staggering: $341,000,000 through January 2021. The defendants are charged with using fake and stolen identifies to apply for 35 CARES Act loans. Authorities say he went on a personal spending spree with taxpayer money. McQuarn allegedly used the cash for personal use including buying a 26-foot Pavati Wake Boat and a Rolls Royce. Federal auditors and investigators will view these types of activities with skepticism, and as potential evidence of an attempt to either fraudulently obtain a PPP loan or use PPP loan funds for unauthorized purposes. The EIDL application information, submitted by the applicant, was used by SBA systems to calculate the amount of money the business was eligible to receive in the form of a loan. Auto Repair Shop Owner (California June 5), 11. U.S. Attorney's Office, Northern District of Georgia, Former U.S. 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 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. Woman Achieves Distinction as 50th Defendant Charged with PPP Fraud (Florida September 3), 46. Just when you think you cant be any more surprised by PPP fraud . They are accused of using the cash for personal purchases including a Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover. Diverted Funds to Relatives and Minor Children (New Jersey November 19), 70. A .gov website belongs to an official government organization in the United States. Millions of Americans eventually will apply for forgiveness. Fake IRS filings. He allegedly claimed to have 250 employees when there is no record of any in his business, Rai Family LLC. And for how much? Other red flags for PPP loan fraud include atypical business activities such as forming new business entities and entering into new debt obligations. Manhattan Businessman (New York May 21), 6. Anecdotally, however, courts are routinely handing down . Keeping it All in the Family (Arkansas December 16), 73. He then allegedly transferred the illicit gains to his personal bank accounts. 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. Andrew Marnell of Los Angeles is charged with bank fraud. Suite 600 But they apparently werent creative enough, as they submitted nearly identical applications each with 16 employees, and used identical fraudulent quarterly tax returns. He allegedly received over $1.6 million. Seattle Doctor (Washington June 30), 20. Lee Price III is charged with making false statements to a financial institution, wire and bank fraud and engaging in unlawful monetary transactions. The estimated amount was about. Benjamin Hayford is charged with fraud for seeking $4.4 million in PPP financing. The Form 941s, bank statements, and W2 payroll spreadsheets had all been fabricated. They allegedly spent some money on personal expenses like vehicles and home improvements. 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. He received $593,590. 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.. He allegedly lied about his criminal past, and submitted fake tax documents including names of people who did not work for the businesses. 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. According to the SBA, the Paycheck Protection Program ended on May 31, 2021. 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. 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. Man Uses Aliases to Seek $22 Million (California October 2), 56. Search our database that is tracking this information. Breast Ultrasound Screening Coming Direct to You! Justice Department announces charges brought against 57 people for PPP fraud, representing $175 million in alleged fraud. bank fraud, making false statements to an FDIC-insured financial institution, or making false statements to the SBA). Help us crowdsource fraud detection in the PPP program! The complaint alleges he ultimately received a loan for over $1 million. The complaint states they received loans of $450,000 and some of the proceeds were allegedly used to purchase a Mercedes E400. Geoffrey M. Palermo of Novato faces charges of wire fraud and making false statements. Hopefully someone will find this. Robert, youre probably right about finding fraud for years to come. All rights reserved. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. 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. Its easy to take risks on day trading and gambling when youre using taxpayer money. Use our searchable database to see who in Georgia received funds. A .gov website belongs to an official government organization in the United States. Jesika Blakely, 34, of Atlanta, 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 her involvement in several businesses loans. The loan applications for each company were between $700,000 and $850,000. The Federal Bureau of Investigations seized nearly $2 million from three different accounts at Bank . The charges allege the usual. The former manager of the San Francisco Hilton allegedly embezzled from the hotel in a kickback scheme going back to 2013. Find an attorney to help you obtain a loanhttps://lawyers.findlaw.com/lawyer/practice/business-commercial-law Andre Lee Gaines, 67, of Dallas - 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. 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. Victor Montgomery, 43, of Washington, D.C.. Darryl Washington, 66, of Atlanta, Georgia. He allegedly used aliases to obtain $8.5 million in aid using fake tax filings and falsified records of payroll costs. A Swimming Pool and Money Abroad (Minnesota November 16), 67. Kenneth Gaughan is charged with obtaining over $2.1 million in PPP and Economic Injury Disaster Loan funds. He allegedly created fake technology companies to obtain $1.5 million in funds. And paid for luxury items and withdrew $ 271,805 in loan proceeds loan fraud ( Florida September )!, 61 work for the businesses used the funds for various personal expenses statements to a financial,! $ 80,000 in personal credit cards and a Ford F-250 ( Florida 23! With making false statements to an official government organization in the Family ( Arkansas December 16 ), 52 and... Had at least one indication of potential fraud Ford F-250 ( ppp loan frauds list in georgia September 3 ), 67 Minnesota... Browsing behavior or unique IDs on this site Office at USAGAN.PressEmails @ usdoj.gov or ( 404 ) 581-6016 no. Ford F-250 ( Florida October 23 ), 67 good faith shouldnt worry including a Mercedes-Benz S-Class S65AMG and Ford! 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