Manhattan Businessman (New York May 21), 6. Abramovs allegedly got nearly $2 million from seven lenders. However, the Government watchdog also recommended oversight of the 4 million smaller loans. Someone we know got 4 PPP loans, all under diff businesses, but almost certain he submitted all the same ppwk for each business. Researchers estimate that $76 billion in PPP loan money was taken illicitly. The FBI apprehended Monica Jaworska and her husband Tarik Jaafar at JFK Airport allegedly attempting to flee to Poland. Ophthalmologist Already Under Indictment (New York June 24), 19. Tranesha Quarterman, 33, of Atlanta, Georgia. Main Office: 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. I was put on furlough for almost 2 months from mid April to end of June. She is alleged to have obtained nearly $600,000. Members of the public are reminded that the indictment only contains charges. U.S. Attorney's Office, Northern District of Georgia, Former U.S. Assistant U.S. Authorities say he went on a personal spending spree with taxpayer money. 18, 2021 at 12:18 PM EDT | Updated : Jun. Search our database that is tracking this information. 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. At Oberheiden P.C., our attorneys and former federal agents are intimately familiar with the federal auditing and investigative processes. 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. A few individuals will be arrested stripped of their material things. Along with its application requirements, the CARES Act also establishes requirements for how companies use, and account for the use of, PPP loan funds. Cherry was on supervised release in an unrelated federal case when he applied to the Small Business Administration program. Deon D. Levy and Abdul-Azeem Levy of Ohio also are charged. 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. Lavanture allegedly went on a spending spree and bought a motel and also an 8.54-acre estate with a Tuscan-style mansion on it. When arrested, he had almost $80,000 in cash at his home and $9,400 in his pocket, authorities claim. 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. She deposited the proceeds into four bank accounts, but that didnt hide it from authorities who seized her ill-gotten gains. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts, For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. 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. 95% Success Rate. Arman Manukyan, a San Fernando Valley man, is charged with fraudulently obtaining an $867,000 loan for a shell sewing company, Argo Global. Stephen J. Cox, the U.S. Attorney for the Eastern District of Texas, wrote in an op-ed in Texas Lawyer: Rest assured that we will be careful not to discourage legitimate businesses from accessing the important financial resources that Congress made available through the CARES Act. I was not hired back. He allegedly obtained $200,000 in Paycheck Protection Program and Economic Injury Disaster loans and used the cash for personal expenses. The pair are charged with submitting 18 fraudulent Paycheck Protection applications with false payroll tax returns, and receiving $1.4 million. He is charged with false statements to a financial institution, bank fraud and engaging in unlawful monetary transactions. To support these payroll figures, each businesss loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report payroll taxes, for each quarter of 2019 and by a bank statement or a spreadsheet reflecting payroll expenses. ) or https:// means youve safely connected to the .gov website. The technical storage or access that is used exclusively for anonymous statistical purposes. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. A pair of Georgia businesses are in hot water over fraud allegations related to their PPP loans. The government issued a seizure warrant for a Mercedes Benz SUV and more than $500,000 from a bank account. They allegedly spent some money on personal expenses like vehicles and home improvements. Fewer than 150 defendants out of of over 5.2 million loans is a minuscule percentage. Using an online tool, I discovered that the small medical lab I had worked at for 4 years had, in fact, been approved for a PPP loan end of April. - Federal Lawyer We Will Protect Your Rights, Reputation and Freedom. Small Business Trends is an award-winning online publication for small business owners, entrepreneurs and the people who interact with them. 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. When the SBA-OIG or DOJ launches an investigation, executing an effective and timely defense is imperative. We Will Protect Your Rights, Reputation and Freedom. US Attorney's Office for Middle District of Ga. investigates high volume of PPP loan fraud By Jessie Gibson Published : Jun. Construction Company Owner (Washington D.C. July 13), 24. 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. Firm's lawyers are only licensed to practice state law in the states mentioned in their respective biographies. Lastly, along with all of the red flags for PPP loan fraud discussed above, there are various other issues that can tip off federal authorities during audits and investigations as well. Sum of Current Approval Amount. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Sum of Undisburse Amount. Every case is different, any prior result described or referred to herein cannot guarantee similar outcomes in the future. 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. The charges allege he applied several times to get aid totaling $3 million, in the names of businesses with no actual operations. He has now gotten over $100K from all 4 businesses I reported 3 times and no response.. nothing! NOTICE: Prior results do not guarantee similar outcomes; attorney advertising. Samuel Yates of Maud, Texas is charged with fraudulently applying for $5 million with two different lenders. This station is part of Cox Media Group Television. "Along with our federal, state and local law enforcement [] 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. Man Uses Forgery to Get EIDL and PPP Loans (North Carolina August 25), 38. When seeking forgiveness, companies are required to provide documentation, and they must affirmatively certify as to the accuracy of this documentation and as to compliance itself. Local Basketball Coach Indicted (Florida November 13), 66. Under 18 U.S.C. He allegedly blew through about $200,000 in Las Vegas casinos, where he was caught on surveillance cameras at a Bellagio blackjack table. 43. The estimated amount was about. An 18-Room Tuscan Mansion on the Taxpayer Dime (New York September 17), 51. However, this grace period has expired, and now the SBA Office of Inspector General (SBA-OIG), the U.S. Department of Justice (DOJ), and other federal agencies are aggressively targeting companies suspected of engaging in PPP loan fraud. Nadine Consuelo Jackson is charged with bank fraud and other charges for seeking a forgivable loan in the amount of $1.3 million, $1.2 million and another $46,000 in Economic Injury Disaster funding. The above numbers are through January 2021, and new instances are being announced regularly. Ahmad Kanan, formerly of Madison, is charged with wire fraud and money laundering. The maximum that one person can get for a PPP loan is $20,833. 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. 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. On January 4, 2021, the DOJ announced that Georgia resident Hunter VanPelt, also known as Ellen Corkrum, was sentenced to nearly 3.5 years in prison (41 months) for PPP loan fraud. Walmart Project Manager (Oklahoma June 4), 10. After two banks declined, Rowberry allegedly said she would help him re-apply through a friend. He allegedly transferred a quarter million dollars of proceeds to his personal brokerage account. All rights reserved. Our searchable database allows users to look up dollar allotments by industry, and lenders. Former Mayoral Candidate Charged with Obtaining Fraudulent $323,000 PPP Loan - In March 2021, the DOJ charged a former mayoral candidate in Georgia with fraudulently obtaining in excess of . 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. Apparently one tim isnt enough for some people. Like with compliance program documentation, inadequate documentation of PPP loan expenditures will be viewed as a red flag for fraud, and it can place companies in a hard position when it comes to defending against federal fraud allegations. Official websites use .gov 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. FBI Assistant Director William F. Sweeney Jr said: The benefits offered by the CARES Act for PPP loans were established to help small business owners survive during the pandemic. Depending on the charges, penalties could include up to $1 million in fines and up to 30 years in prison, legal experts say. References to a particular city or state other than Dallas, Houston, and Texas in any article or anywhere on this website does NOT mean that Firm maintains an office in that location, and it does NOT mean that Firm has attorneys physically located in that city or state. 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.. The allegations say he submitted fake IRS documentation. Lyft Software Engineer (Washington May 22), 9. Search our database that is tracking this information. Nine EIDL and PPP Loan Applications (Washington October 27), 62. Man Gives 23 People Pandemic Pay, Buys House (Nevada August 26), 39. Our searchable databaseallows users to look up dollar allotments by industry, and lenders. However, the alternative of waiting would not have served the country well. This article is updated regularly. 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. Jean R. Lavanture of Saugerties was arrested for bank fraud for allegedly obtaining $5 million in government-backed loan for companies that had neither employees nor income in recent years. 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. Subsequently, upon receiving PPP loans (or, ideally, in anticipation of receiving a PPP loan), companies should adopt policies and procedures that are designed to ensure continual PPP compliance. According to the SBA, the Paycheck Protection Program ended on May 31, 2021. 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? Wells Fargo previously fired him for embezzlement, according to news reports. (Shutterstock) ATLANTA Federal fraud charges were filed against. 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. 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. 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. Report fraud/thefthttps://www.sba.gov/funding-programs/loans/covid-19-relief-options/report-id-theft-fraud All rights reserved. Richard B. Russell Federal Building A Bentley Convertible and a Jaw Dropping Scheme (Texas October 9), 58. It is alleged he got over $190,000 in proceeds and managed to withdraw cash or cashiers checks for $140,000. The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. 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 impact of COVID-19 on small businesses around the country has been devastating, said Acting U.S. Attorney Kurt R. Erskine. The retail giant suspended him and stated the charges were unrelated to Walmart. Its a wild tale. After receiving the loans, he bought a $480,000 , spent $50,000 to $200,000 on a lost gambling bet, bought a brand new speedboat worth about $150,000, he also bought Martina D****la a $900 pair of shoes for her 23rd birthday. 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