Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justices National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. A .gov website belongs to an official government organization in the United States. 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. Dr. Nick Oberheiden, founder of Oberheiden P.C., focuses his litigation practice on white-collar criminal defense, government investigations, SEC & FCPA enforcement, and commercial litigation. Thomas is from Duluth. Antonio George of Michigan was charged in a criminal complaint with trying to obtain $3.1 million in PPP loans on behalf of 19 different companies. Then turns around and starts writing checks to Lamborghini dealerships. So far, six. Casey David Crowther was charged with receiving more than $2 million in PPP funds. Millions of dollars of coronavirus relief funds meant to keep employees on the payroll were instead blown on extravagant personal spending sprees all by a relatively small handful of people. Rahul Shah of Evanston is charged with bank fraud and making false statements to a financial institution. Great Article! The federal Paycheck Protection Program (PPP) is subject to a whole host of rules and restrictions. Under the terms of the PPP, utilizing loan funds for personal expenses is expressly prohibited. 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. Lock Reality TV Personality (Georgia May 13), 4. 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. 1349, individuals and companies charged with attempt can face the same penalties that apply to the successful completion of a criminal offense (i.e. High-Living Florida Man (Florida July 27), 29. 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. And you wont believe how rotten they are. While the government is helping those in need, law enforcement is swiftly addressing these vulnerabilities. One defendant was so brazen he allegedly posted a rap video online flashing $100 bills. However, the Government watchdog also recommended oversight of the 4 million smaller loans. 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. The overwhelming majority of owners who received PPP loans legitimately used the money to retain employees and stay operational. During the investigation, the U.S. seized nearly $4 million in PPP loan proceeds, four luxury vehicles, and several jewelry items. Applied for PPP Loan While out on Bail (Tennessee November 9), 64. Attorneys, including the Fraud Section, have resulted in a variety of charges, including wire fraud (18 U.S.C. 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. For federal authorities such as the SBA-OIG and the DOJ, this includes suspect activity from any and all company personnel who are involved in responding to the governments inquiry; and, for companies, this includes evasiveness from employees during internal PPP compliance investigations. 2023 Oberheiden P.C. Federal authorities claim they used some of the coronavirus pandemic funds to buy luxury automobiles. Former Police Officer Sentenced For Money Laundering. After two banks declined, Rowberry allegedly said she would help him re-apply through a friend. The case was brought in Los Angeles, California. 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. I did too!! We Will Protect Your Rights, Reputation and Freedom. Wads of cash, casino runs and strip club visits also figured in the mix in the PPP loan fraud spree. Chanchikyan has pleaded not guilty, and his trial is scheduled for October 4, 2022. 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. If you got funding after June 5, you have five years to repay. Las Vegas Man Hits 7 Different Lenders (Nevada January 28, 2021), 79. He was arrested after he booked a same-day flight to Pakistan. Manhattan Businessman (New York May 21), 6. Keeping it All in the Family (Arkansas December 16), 73. A pair of Georgia businesses are in hot water over fraud allegations related to their PPP loans. Claimed to Have Paid 100 Employees (Florida September 17), 52. The complaint alleges he ultimately received a loan for over $1 million. Rafael Maturino and Winston James were charged separately but allegedly worked together to carry out their scheme. IT Company Owner (Illinois June 16), 13. payments for travel, vehicles, and home office expenses) can also create risk. 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 PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. 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. 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. Lock On average, companies that received a loan got $101,000 according to SBA data. The attempted fraud is staggering: $341,000,000 through January 2021. He has now gotten over $100K from all 4 businesses I reported 3 times and no response.. nothing! Our focus is on fraud.. 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. In the loan applications, the defendants certified that each applicant business was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors; that the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents and forms was true and accurate in all material respects. Five Charged in Connection With PPP Loans Scheme (Wisconsin/Illinois October 22), 60. 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. The defendants allegedly took advantage of emergency financial assistance intended for business owners suffering the economic effects caused by the COVID-19 pandemic, said Acting U.S. Attorney Kurt R. Erskine. 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.. He allegedly submitted false documentation on behalf of multiple companies purporting to register emotional support animals. The case was investigated by the FBI and SBA-OIG. The overwhelming majority of small businesses have no allegations of Paycheck Protection Program fraud. After the PPP loan proceeds were deposited into the businesses accounts, the businesses transferred more than $5.5 million of the PPP loan proceeds into accounts controlled by Darrell Thomas, purportedly for rental payments and payroll. Here's a list of the PPP loan prosecutions to date: 1. Related coverage:Treasury names 650K small businesses receiving govt loans. The allegations say he submitted fake IRS documentation. But according to the criminal complaint, Palermo used company funds for lavish personal expenses including a Ferrari racing car, leaving the business in financial distress. The complaint states he applied on behalf of fake companies with names like White Walker, Khaleesi, and The Nights Watch. The government issued a seizure warrant for a Mercedes Benz SUV and more than $500,000 from a bank account. "Small Business Trends" is a registered trademark. As part of their crimes, the defendants not only submitted false information for the business loans, but for the PPP, they also allegedly created fake Internal Revenue Service documentation to support the applications. Postal Inspection Service (USPIS) and the Drug Enforcement Administration executed a search warrant at the home of Alicia Quarterman in connection with an ongoing narcotics trafficking investigation. 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. The complaint alleges Smith bought a $96K Ferrari and other luxury items and withdrew $271,805 in loan proceeds. Call 888-680-1745 for Central Intake with Dr. Nick Oberheiden Criminal Law & Process, PPP fraud What are the Red Flags for 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. Millions of Americans eventually will apply for forgiveness. US Attorney's Office for Middle District of Ga. investigates high volume of PPP loan fraud By Jessie Gibson Published : Jun. A .gov website belongs to an official government organization in the United States. In some cases, pursuant to Rule 7.04 of the Texas Disciplinary Rules of Professional Conduct and the equivalent in other jurisdictions, a case is referred to a Local Counsel, the Firm will not participate in the representation. Ugarte allegedly used it for past due truck payments to Kenworth instead of required payroll. Special Agent in Charge Joseph R. Bonavolonta of the FBIs Boston Field Office said in a statement, Thankfully we were able to stop them before taxpayers were defrauded.. I was not hired back. Six people were charged by indictment in this ring spanning two states. Katie Quarterman, 28, of Atlanta, Georgia, Nikia Wakefield, 42, of Rockville, Maryland, and. Members of the public are reminded that the indictment only contains charges. 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. Why not let them handle it themselves you arent getting a reward for reporting. Kyle William Brenizer of St. Paul is charged with wire fraud and money laundering. Brenizer was out on other criminal charges at the time, but he allegedly applied under another persons name. For a quick overview, this infographic tells the story of what happens when the funds are misused in a PPP loan fraud. Attorney Buys Million Dollar Home (New Jersey September 2), 45. To this end, all companies that received PPP loans would be well-advised to proactively conduct an internal PPP compliance investigation. If you dont know, those are characters from the Game of Thrones TV series. Copyright 2003 - 2023, Small Business Trends LLC. 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. And for how much? 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. The defendants are presumed innocent of the charges, and it will be the governments burden to prove the defendants guilt beyond a reasonable doubt at trial. He also agreed to forfeit various assets, including more than $2.1 million in seized funds, three luxury vehicles a 2018 Mercedes-Benz S-Class S65AMG, a 2018 Land Rover Range Rover, and a 2017 Acura NSX and several items of jewelry, including a gold Rolex. 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. 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. 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. Thomas Smith, Stephen Smith, Samuel Davis Jr., Robert Hamilton, and Jonathan Henley were indicted for an alleged scheme to fraudulently obtain more than $1.1 million in PPP loans. Austin Hsu of Issaquah, WA was charged with wire fraud in connection with fraudulently seeking over $1.1 million. Nurse Charged for Defrauding COVID-19 Relief Programs (Florida January 8, 2021), 78. This means you have to be just as scrupulous when applying for forgiveness as when you applied for the loan initially. Didier Kindambu is facing charges that he falsified payroll documentation to $2.5 million. Providing false statements to gain access to SBAs programs will be aggressively investigated by our office, said Hannibal Ware, Inspector General of the U.S. Small Business Administration, in a statement. The government wisely decided to move fast and let the justice system track down any miscreants. Abramovs allegedly got nearly $2 million from seven lenders. Joshua Thomas Argires of Houston was arrested on various fraud charges. The banks internal auditors will then report it to the SBA faster than you can say oops, bad move.. Two-Man Fraud Ring for PPP Loans (Oklahoma December 18), 76. They allegedly discussed their fraud in email and one assumed the identity of his own brother. (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. 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. 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. Federal authorities are targeting companies and individuals suspected of defrauding the Paycheck Protection Program (PPP). The loan applicants forgiveness process is bound to trigger another round of scrutiny. After leaving the hotel he opened GMP Cars. Darrell Thomass sentencing is set for September 15, 2021 before Judge J.P. Boulee. At Oberheiden P.C., our attorneys and former federal agents are intimately familiar with the federal auditing and investigative processes. IRS-CI will continue to help illuminate these criminal deeds with our financial expertise., The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act, said J. Russell George, the Treasury Inspector General for Tax Administration. The 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. A package containing methamphetamine hidden in dog food containers had been mailed to Quartermans home. 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. Hopefully someone will find this. Are you or your company at risk for facing allegations of PPP loan fraud? Terry was sentenced to 65 months in federal prison for other cases. Its going to raise a red flag. 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. 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