Firm's engagement letter and Firm's website disclaimers provide additional details. ) or https:// means youve safely connected to the .gov website. Due to a high volume of calls, we are unable to take on more PPP clients at this time. No. The complaint alleges George provided false and misleading documents and apparently couldnt keep his fake employees straight. 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? Want to know if your employer got aPaycheck Protection Planor PPP loan? Elijah Majak Buoi, president of Sosuda Tech LLC, is charged with fraudulently applying for over $13 million in PPP aid. Report fraud/thefthttps://www.sba.gov/funding-programs/loans/covid-19-relief-options/report-id-theft-fraud This alleged PPP ring paid each other for services never rendered to try to hide the money trail. Authorities claims Yates used a name generator on the Internet to create names of fake staff. 2023 www.onlineathens.com. When arrested, he had almost $80,000 in cash at his home and $9,400 in his pocket, authorities claim. 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. 1014). Michael George McQuarn, 51, of Austin, is charged with with fraudulently receiving over $2 million in Small Business Administration loans for two fictitious companies, Vantastic Voyages, LLC and Happy Days Movers, LLC. He allegedly used those funds to buy a 33-foot Cruisers Yacht for $300,000, a $1.13 million rowhouse, and a $46,000 luxury Kia Stinger. Tristan Bishop Pan was charged for allegedly seeking $6 million in Paycheck Protection Program loan. Prominent CEO of Hawaii Government Contractor (Hawaii -September 30), 55. You can also check to see how many workers companies receiving the assistance said they kept on the payroll. 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.. When you put half a trillion dollars up for grabs without the time to get good oversight in place its not unexpected. Man Uses Forgery to Get EIDL and PPP Loans (North Carolina August 25), 38. He also allegedly submitted forged tax documents. Another report by the SBA OIG found tens of thousands of examples of companies that received PPP loans ineligibly. Luckily, the Feds have recovered a large part of the loan proceeds already, although millions is forever gone. Former Senior Trial Attorney U.S. Department of Justice, Former U.S. Attorney & Former District Attorney. A crucial aspect of the PPP is that companies are only allowed to use the funds they receive for specific authorized purposes. Georgia and South Carolina Fraud Ring with 11 People (Georgia, January 28, 2021). SBA partner banks initially approved 11 of the fraudulent PPP loans Lawson submitted and ultimately paid . 90 PPP Applications in This Fraud Ring (Ohio and Florida August 6), 33. Claims of employees who didnt exist. Terry was sentenced to 65 months in federal prison for other cases. It is free MONEY no one will repay one single dollar. Search our database that is tracking this information. He allegedly lied about not being under criminal charges he in fact was under indictment for a bribery scheme. She allegedly submitted fake IRS form 940 filings (showing employment taxes claimed to be paid) for her company, Heavenly Tahoe Properties. On March 16, 2020, Attorney General William Barr directed all 94 U.S. Attorneys Offices to prioritize investigating and prosecuting PPP loan cases of fraud. They allegedly spent some money on personal expenses like vehicles and home improvements. If an applicant knowingly answers any of these questions falsely, it may face False Claims Act liability.. That didnt stop him from allegedly applying for two PPP loans using different company names. This means you have to be just as scrupulous when applying for forgiveness as when you applied for the loan initially. The borrower gets the PPP loan funds into their bank account. PPP Loan Fraud List | Who Got a PPP Loan? Leon Miles was charged with obtaining funds intended for business owners harmed by the coronavirus pandemic. Fahad Shah got $1.5 million in funds. Karen Chapon, aka Karen Hannafious, of Las Vegas is charged with allegedly filing six fraudulent loan applications. 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. Rahul Shah of Evanston is charged with bank fraud and making false statements to a financial institution. Three people she allegedly claimed as staff told investigators they never heard of her company. A lock ( 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. Court documents allege that handwritten notes recovered from his trash describe how he planned to use $3 million of it for personal investments. 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. 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. Under the CARES Act, companies are only eligible to receive one PPP loan from one lender at a time. Its alleged they falsely claimed to have dozens of workers at 4 different businesses, including a restaurant neither owned. Or do you want to know whichcompanies got taxpayer-fundedloans? Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. IT Services Company Owner (Massachusetts June 22), 15. PPP2 started accepting applications on January 11, 2021. Justice Department representatives say honest owners acting in good faith shouldnt worry. According to the SBA, thePaycheck Protection Program ended on May 31, 2021. Former Police Officer Sentenced For Money Laundering. At Oberheiden P.C., our attorneys and former federal agents are intimately familiar with the federal auditing and investigative processes. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. Days later he allegedly bought a 2020 Lamborghini Huracan sports car for $318,000. Authorities seized the yacht, car, and various bank and investment accounts. Businesses that have to repay the loan get 2 years to repay if funding was issued before June 5. 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. 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. Are you at risk? 18, 2021 at 12:18 PM EDT | Updated : Jun. bank fraud, making false statements to an FDIC-insured financial institution, or making false statements to the SBA). Through August 8, 2020, when the first Paycheck Protection Program PPP program closed, the SBA approved 5,212,128 loans. We have a new Administration in Washington, but government officials in the Justice Department have not signaled a change in enforcement policy. 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. Suite 600 He allegedly was caught on camera withdrawing cash. An official website of the United States government. Transferred $335k to Personal Accounts (California -October 29), 63. If you dont know, those are characters from the Game of Thrones TV series. 4 Of The Best Ice Cream Spots In The Atlanta Area Vegan, Too! Members of the public are reminded that the indictment only contains charges. I did too!! 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. In reality, however, none of the businesses had employees or payroll expenses. 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. Atlanta, GA 30303-3309. Advice. To provide the best experiences, we use technologies like cookies to store and/or access device information. In order to get Paycheck Protection loans forgiven and not have to repay the loan, owners have to show proof that at least 60% was used for payroll and the rest for other permitted expenses. The Government alleged that Chanchikyan submitted fraudulent loan applications seeking approximately $345,000 in COVID-19 relief funds through his home health agency, Gentle Touch Home Health Care Inc. 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. Search. However, the alternative of waiting would not have served the country well. Are you or your company at risk for facing allegations of PPP loan fraud? Wells Fargo previously fired him for embezzlement, according to news reports. Legitimate small companies and self-employed individuals needed speed. Kindambu made some expensive personal purchases that authorities say were not permissable under the loan terms, including the plane the Lexus. 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. Can I, and should I, report this. Brenizer was out on other criminal charges at the time, but he allegedly applied under another persons name. I was put on furlough for almost 2 months from mid April to end of June. Richard B. Russell Federal Building Evasiveness and inability (or unwillingness) to produce documentation of PPP compliance is a major red flag for fraud as well. This is based on the adage that where there is smoke, there is fire if someone seems concerned about what might be found, there is usually a reason why. "Along with our federal, state and local law enforcement [] 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. 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. Sum of Current Approval Amount. I appreciate your consideration/guidance/help/time. Ricky Dixon, 52, of Warren, Michigan, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, aggravated identity theft, and money laundering in connection with his involvement in the loan obtained by his business, RK Painting Co., and several other businesses loans. One local businesswoman told me she prayed for two weeks before applying because of her fears over confusing requirements. Azhar Sarwar Rana, 30, of Newton, New Jersey, was charged for submitting a fraudulent application for a real estate development company, and falsified payroll data. Man Under Indictment (Wisconsin July 8), 21. The Federal Bureau of Investigations seized nearly $2 million from three different accounts at Bank . He allegedly received $17.3 million and spent the money on a Bentley convertible as well as sending millions of dollars abroad. Tranesha Quarterman, 33, of Atlanta, Georgia. 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. (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. According to U.S. Attorney James Kennedy, Mr. 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. Claimed to Have Paid 100 Employees (Florida September 17), 52. 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. 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. You can search and filter the list, but only flagged loans will be shown. Share sensitive information only on official, secure websites. 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. Assistant U.S. is headquartered in Dallas, Texas and it only maintains a fully equipped office in Dallas and Houston. 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. 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. 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. The complaint also states he was convicted of four counts of bank robbery and fraud previously. Five Charged in Connection With PPP Loans Scheme (Wisconsin/Illinois October 22), 60. Seattle Doctor (Washington June 30), 20. Wads of cash, casino runs and strip club visits also figured in the mix in the PPP loan fraud spree. Restaurant Owner and Son Charged ( North Carolina December 17), 75. Arman Manukyan, a San Fernando Valley man, is charged with fraudulently obtaining an $867,000 loan for a shell sewing company, Argo Global. He allegedly obtained $841,000 in PPP funds for a defunct contracting company with no employees, called True-Cut. The retail giant suspended him and stated the charges were unrelated to Walmart. Investigations by the DOJ and U.S. Seven Charged in Fraud Ring (South Carolina September 10), 47. 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