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. No. Ten people indicted in Metro Atlanta, Houston and D.C.-Maryland area on federal fraud charges for false CARES Act applications. Search our database that is tracking this information. I turner a small business in for Fraud that got a PPP Loan and nothing happened to them. Owner of Private Investigation Firm (Ohio June 24), 18. 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. I did too!! Tranesha Quarterman, 33, of Atlanta, Georgia. Its going to raise a red flag. Benjamin Hayford is charged with fraud for seeking $4.4 million in PPP financing. Justice Department representatives say honest owners acting in good faith shouldnt worry. To date, a total of 22 individuals have been charged in connection with the fraudulent scheme. Auto Repair Shop Owner (California June 5), 11. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. [SIGN UP: WSB-TV Daily Headlines Newsletter]. Here's a list of the PPP loan prosecutions to date: 1. This alleged PPP ring paid each other for services never rendered to try to hide the money trail. Also, the seizure warrant revealed multiple California unemployment benefits debit cards. A locked padlock 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. Woman Achieves Distinction as 50th Defendant Charged with PPP Fraud (Florida September 3), 46. Court documents allege that handwritten notes recovered from his trash describe how he planned to use $3 million of it for personal investments. However, none of the businesses had any legitimate business with any of the businesses or accounts to which they sent the proceeds. In another case, a married couple was apprehended at JFK Airport allegedly attempting to flee the country after submitting 18 fraudulent PPP loan fraud applications. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Reality TV Personality (Georgia May 13), 4. The case was brought in Los Angeles, California. If your company received a PPP loan, is it at risk? This comes as federal prosecutors in Georgia continue to make new arrests for PPP fraud. Former Police Officer Sentenced For Money Laundering. Brenizer was out on other criminal charges at the time, but he allegedly applied under another persons name. 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. While the government is helping those in need, law enforcement is swiftly addressing these vulnerabilities. India Middleton, 34, of Accokeek, Maryland. Andrew Marnell of Los Angeles is charged with bank fraud. Abramovs allegedly got nearly $2 million from seven lenders. Thomas is from Duluth. He was arrested after he booked a same-day flight to Pakistan. Gaughan is also charged separately with allegedly embezzling $472,000 from the Catholic Archdiocese of Washington, D.C. where he previously worked. 1344) - Along with 18 U.S.C. "Small Business Trends" is a registered trademark. On August 9, Manukyan allegedly boarded a flight from Mexico City to Belarus. Even if only one PPP loan was obtained, attempting to obtain more than one loan can still lead to criminal prosecution. Former Senior Trial Attorney U.S. Department of Justice, Former U.S. Attorney & Former District Attorney. 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.. The government issued a seizure warrant for a Mercedes Benz SUV and more than $500,000 from a bank account. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. How to apply for a loan on your ownhttps://bench.co/blog/operations/how-to-apply-first-ppp-loan/ Gaines is set to be sentenced on October 6. Have we seen the last of Paycheck Protection Program PPP loan fraud prosecutions? PPP2 started accepting applications on January 11, 2021. Nine EIDL and PPP Loan Applications (Washington October 27), 62. She is alleged to have obtained nearly $600,000. 5 Places To Swim In Atlanta A Swimming Activity Of Every Kind, The 5 Best Atlanta Facebook Groups To Follow ASAP, Adarin Jones, a/k/a Adrian Jones, 42, of Atlanta, GA. Victor Montgomery, 43, of Washington, D.C. And for how much? 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. See how PPP works. Look up the extravagant purchases of the nations record setting check kiter Adam W****man. Or do you want to know whichcompanies got taxpayer-fundedloans? Celestine Coletta Strong, Jawuan Polk, Patrick Earl Lewis, and Tyzhaun Marqui Lewis were charged in connection with a scheme to fraudulently obtain PPP funds. 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). Man Out on Charges Buys Harley (Nevada August 21), 37. 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. Find an attorney to help you obtain a loanhttps://lawyers.findlaw.com/lawyer/practice/business-commercial-law I appreciate your consideration/guidance/help/time. Surely the government does a personal credit check on the owner unless he falsified his identity. 1014). Its easy to take risks on day trading and gambling when youre using taxpayer money. 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. Nationwide Federal Defense, Compliance and Litigation. We will not punish companies that accessed stimulus funds in good faith compliance with the rules. Allegedly Hsu applied in the names of current and former employees, and incorporated a fake company also. And for how much? 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. The OMelveny law firm noted: if history is a guide, DOJ will use its leverage over institutions that processed the loans to do the governments initial work of identifying potential irregularities in loan applications. One defendant was so brazen he allegedly posted a rap video online flashing $100 bills. Want to know if your employer got aPaycheck Protection Planor PPP loan? Businesses that have to repay the loan get 2 years to repay if funding was issued before June 5. During the investigation, the U.S. seized nearly $4 million in PPP loan proceeds, four luxury vehicles, and several jewelry items. Ex-Felon Charged With PPP Loan Fraud (Rhode Island September 22), 53. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Last Updated: 2023-02-05 Lock (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. Oludamilare Olugbuyi was charged with fraudulently obtaining two PPP loans totaling more than $400,000. The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. How does the government miss a well know con artist? 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. Someone we know got 4 PPP loans, all under diff businesses, but almost certain he submitted all the same ppwk for each business. Members of the public are reminded that the indictment only contains charges. He also allegedly used the money to pay $50,000 for restitution in a previous fraud case, $40,000 in back child support, $139,000 to lease a Rolls Royce Wraith and $230,000 to associates who helped him run a Ponzi scheme. Most of the funds are going to help the nations 31 million small businesses. He got up to $5.7 million in loans. 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. The PPP promissory note you signed will have the terms applicable to you. 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. He received $593,590. Can I, and should I, report this. 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. 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. Five Charged in Connection With PPP Loans Scheme (Wisconsin/Illinois October 22), 60. The loan applicants forgiveness process is bound to trigger another round of scrutiny. Izzat and Tarik Freitekh, a father-son duo, were charged with lying and forging IRS records to obtain $1.7 million in PPP funds for three different businesses. As part of the court-authorized search, law enforcement seized Quartermans cell phones and discovered a handwritten ledger with the personal and banking information of several individuals. 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. Report fraud/thefthttps://www.sba.gov/funding-programs/loans/covid-19-relief-options/report-id-theft-fraud 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. 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. After the fraudulent loans were paid out by the SBA or partner banks, the co-conspirators completed their scheme by allegedly paying Quarterman a fee from the proceeds of the fraudulent loans which she would split with Lawson. In many cases, this will require more than merely recording the transaction itself. If so, how do I go about it? 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. 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 spent $29,ooo on a Harley Davidson. Two Men, Identity Theft and a Conspiracy (Rhode Island May 5, 2020), 3. Fraudsters like Benjamin Hayford greedily steal money that should be going to Americas small business owners who are struggling during this public health crisis, said U.S. Attorney Trent Shores. Fraudulent Loans List :: PPP Detective Fraudulent Loans List These loans have been flagged by other users as potentially being fraudulent. Official websites use .gov ("Firm") works with affiliated lawyers (referred to as "Local Counsel") in various cities and states across the United States. 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? Authorities revealed they recovered $1.3 million of the funds. Our mission is to bring you "Small business success delivered daily.". Man Under Indictment (Wisconsin July 8), 21. 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 indictment alleges Kanan was under federal indictment on an unrelated matter at the time. He then went on a buying extravaganza, spending on a Tesla, a Bentley, two condominiums, and paying his home mortgage. Samuel Yates of Maud, Texas is charged with fraudulently applying for $5 million with two different lenders. A Bentley Convertible and a Jaw Dropping Scheme (Texas October 9), 58. 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. Have a question about Government Services? Keeping it All in the Family (Arkansas December 16), 73. The total approved was over $525 billion, demonstrating its success. Sadleir was Executive Producer on films like, Baoke Zhang, a software engineer at ride share company Lyft, is charged with wire and bank fraud. The bank recalled one loan and the Government seized funds for the other two. Married Couple Attempting to Flee (Virginia June 24), 17. 95% Success Rate. The complaint alleges he ultimately received a loan for over $1 million. At Oberheiden P.C., our attorneys and former federal agents are intimately familiar with the federal auditing and investigative processes. Geoffrey M. Palermo of Novato faces charges of wire fraud and making false statements. 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. He was approved for $3.9 million. It is alleged he got over $190,000 in proceeds and managed to withdraw cash or cashiers checks for $140,000. Atlanta, GA 30303-3309. The Federal Bureau of Investigations seized nearly $2 million from three different accounts at Bank . It will be viewed as a red flag for fraud in the event of an SBA audit or an SBA-OIG or DOJ investigation if a company does not have documented policies and procedures for PPP compliance. Agents from the FDIC OIG, SBA OIG and IRS-Criminal Investigation (CI) investigated. 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. Deon D. 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