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. no owner of a 20% or greater interest has been convicted of or pleaded guilty to a, Former Department of Justice Trial Attorneys, Former Federal Prosecutors, U.S. Attorneys Office. Man Charged with Identity Theft (Florida August 10), 34. Subscribe to The Federal Docket to keep on top of recent cases and important developments in federal criminal law. Two Men, Identity Theft and a Conspiracy (Rhode Island May 5, 2020), 3. Sum of Forgiven Amount. U.S. Attorney's Office, Northern District of Georgia, Former U.S. Lee Price 3rd in Houston defrauded SBA of $1.6 million despite a 14 year record of crimes. Its easy to take risks on day trading and gambling when youre using taxpayer money. To provide the best experiences, we use technologies like cookies to store and/or access device information. Miles allegedly used the gains to purchase a Bentley and Cadillac, and withdrew hundreds of thousands of dollars. According to the SBA, thePaycheck Protection Program ended on May 31, 2021. He allegedly used some of the cash to pay off $80,000 in personal credit cards and a $40,000 car loan. The Feds froze his bank account and recovered $402,000. PLANNED PARENTHOOD MUST BE PROSECUTED FOR TAXPAYER MONEY THEFT! One was on behalf of a company called Texas Barbecue and the other called Houston Landscaping. He allegedly got $22,000 which he then deposited partially into a personal account and partially gave to another company in furtherance of a $5.6 million Medicare kickback scheme. Ngoc Manh Nguyen, Victoria Dieuy Ho, and Dat Tat Ho were charged for allegedly having misrepresented employee payroll figures to receive $13 million in COVID-19 loan funds. Purchased a Luxury Mercedes E400 (Arizona December 17), 74. Authorities seized the Range Rover, worth about $125,000, jewelry, $120,000 in cash, and $3 million from 10 bank accounts. Want to know if your employer got aPaycheck Protection Planor PPP loan? He then went on a luxury buying blitz acquiring a Lamborghini Urus, a Rolex watch, a 2020 Ford F-350 pickup truck, and real estate according to allegations. Investigations by the DOJ and U.S. They have fewer than 500 employees, qualify as a small business concern under Section 3 of the Small Business Act, or meet one of the limited number of other PPP eligibility standards; and, Their owners are eligible to participate in SBA programs such as the PPP (i.e. Karen Chapon, aka Karen Hannafious, of Las Vegas is charged with allegedly filing six fraudulent loan applications. They allegedly spent some money on personal expenses like vehicles and home improvements. [SIGN UP: WSB-TV Daily Headlines Newsletter]. He was arrested after he booked a same-day flight to Pakistan. 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 Man Couldnt Keep His 19 Fraudulent Applications Straight (Michigan September 1), 44. Austin Hsu of Issaquah, WA was charged with wire fraud in connection with fraudulently seeking over $1.1 million. One defendant was so brazen he allegedly posted a rap video online flashing $100 bills. He also allegedly submitted forged tax documents. Many cases involve forged IRS filings one of the easiest things for the government to check. Dr. Nick Oberheiden is a nationally recognized expert on PPP loan laws. In addition to fraud, this could have been for a variety of reasons, including companies that owe money to the government and are in a federal Do Not Pay database, or companies that received more than they should have. He allegedly bought a 2020 Mercedes and a special edition Ford F-250 pickup truck, and wired $537,000 to a property management company in south Florida. 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. Buoi allegedly misrepresented how many wokers he had and that the United States was their primary residence (required). Suite 600 - Federal Lawyer We Will Protect Your Rights, Reputation and Freedom. 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. Man Under Indictment (Wisconsin July 8), 21. Kindambu made some expensive personal purchases that authorities say were not permissable under the loan terms, including the plane the Lexus. 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. Diverted Funds to Relatives and Minor Children (New Jersey November 19), 70. McQuarn allegedly used the cash for personal use including buying a 26-foot Pavati Wake Boat and a Rolls Royce. However, the Government watchdog also recommended oversight of the 4 million smaller loans. 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. This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General. 1344. In August 2021, Ms. VanPelt pled guilted to bank fraud related to submitting six fraudulent PPP loan applications on behalf of six companies she owned or controlled. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. Our searchable database allows users to look up dollar allotments by industry, and lenders. 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. The Federal Bureau of Investigations seized nearly $2 million from three different accounts at Bank . According to Federal authorities, Crowther submitted an application on behalf of his roofing company that contained false and misleading statements. 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. Thats a great point, Alex! Search our database that is tracking this information. 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.. Some of Quarterman and Lawsons co-conspirators also allegedly recruited additional participants to the scheme and then sent their information to Quarterman for fraudulent loan applications. Oludamilare Olugbuyi was charged with fraudulently obtaining two PPP loans totaling more than $400,000. 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. The Cryptocurrency Investor (Texas July 14), 25. 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. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you. So youre really that miserable that you would call and report someone ? NFL Player Blows 62 Grand at the Hard Rock Casino (Florida September 10), 49. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. Fake Sewing Company Owner Fled Country (Los Angeles August 11), 36. Lock Jorge Abramovs was charged in an indictment with bank fraud, making false statements to a bank, and money laundering. 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. Eight other defendants include Damion O. Mckenzie, Andre M. Clark, Keyaira Bostic, Wyleia Nashon Williams, James R. Stote, and Ross Charno, all of Florida. Didier Kindambu is facing charges that he falsified payroll documentation to $2.5 million. Argires allegedly invested some of the proceeds in a cryptocurrency account and withdrew cash via ATM transactions. 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. He was approved for $3.9 million. SBA partner banks initially approved 11 of the fraudulent PPP loans Lawson submitted and ultimately paid . Also, the EIDL loan application date has been extended through 2021. 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. Keeping it All in the Family (Arkansas December 16), 73. Game of Thrones Inspired These Fake Company Names (North Carolina September 29), 54. Auto Repair Shop Owner (California June 5), 11. The U.S. Secret Service and IRS participated in this investigation, along with the U.S. Attorney for the Southern District of Florida. The technical storage or access that is used exclusively for statistical purposes. In another unusual burst of government speed, the SBA and Treasury Secretary Steven Mnuchin started accepting loan recipients applications just a week later on April 3, 2020. The COVID-19 pandemic has caused financial hardships for many hardworking business owners across the nation. A few individuals will be arrested stripped of their material things. With that kind of speed, no program could be perfect. 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. One local businesswoman told me she prayed for two weeks before applying because of her fears over confusing requirements. 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. Other red flags for PPP loan fraud include atypical business activities such as forming new business entities and entering into new debt obligations. The overwhelming majority of owners who received PPP loans legitimately used the money to retain employees and stay operational. Victor Montgomery, 43, of Washington, D.C.. Bank Fraud (18 U.S.C. 4 Of The Best Ice Cream Spots In The Atlanta Area Vegan, Too! He allegedly used the loot to buy a Tesla car, make personal investments and make his home mortgage payments. 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. Then he allegedly used $689,000 to buy a luxury catamaran yacht. 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. But the program attracted a few rotten apples that committed PPP loan fraud. Postal Inspectors are committed to aggressively pursuing investigations in which the U.S. Mails are used to facilitate criminal schemes.In August 2020, DEA and Postal inspectors tracking drugs mailed to the Fayetteville home of 38-year-old Alicia Quarterman found a written ledger with personal and banking information for several individuals, prosecutors said. U.S. Attorney's Office, Northern District of Georgia, Former U.S. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. Attorney Buys Million Dollar Home (New Jersey September 2), 45. 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. We Will Protect Your Rights, Reputation and Freedom. Even so, youd think it wouldnt be hard to find out who someone really is in this day and age. The allegations claim he submitted a tax return reporting $175,565 income for tax year 2019. Check Out These 30 eCommerce Web Design Ideas, Stop Worrying About Mobile Ad Fraud Thanks to This New Tool, Shutterstock Revenue for 2015 Sees 30 Percent Increase, Pairing People with Platforms for Better CX, How to Protect Your Small Business from the Latest Scam -- A More Elaborate 419 Fraud, See the SBA website for updated forgiveness information, David Staveley, aka Kurt D. Sanborn, and David Butziger were charged with conspiring to seek over $530,000 in PPP money. ("Firm") works with affiliated lawyers (referred to as "Local Counsel") in various cities and states across the United States. Charles Petty a/k/a Charles Knight, 48, 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 the loan obtained by Transportation Management Services Inc. Jerry Baptiste, 43, of College Park - 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 Transportation Management Services Inc. Charles Hill IV, 45, of Norcross - charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, Infinite Education Services Inc. Teldrin Foster, 39, of Decatur - charged with conspiracy to commit wire fraud in connection with the loan obtained by Bellator Phront Group Inc. Denesseria Slaton, 52, of Stockbridge - charged with conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc. Carla Jackson, 53, of Tucker - previously charged by indictment on August 4, 2020 with money laundering in connection with laundering the proceeds of Gaines Reservation and Travels PPP loan. Under the terms of the PPP, utilizing loan funds for personal expenses is expressly prohibited. 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. He allegedly submitted false documentation on behalf of multiple companies purporting to register emotional support animals. Georgia has a total of 553,322 businesses that received Paycheck Protection Program (PPP) loans from the Small Business Administration. He is alleged to have bought a $400,000 house with taxpayer funds. 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. We will work tirelessly to protect the integrity of the EIDL and PPP and to help small businesses stay afloat.. Assistant U.S. Andrew Marnell of Los Angeles is charged with bank fraud. At Oberheiden P.C., our attorneys and former federal agents are intimately familiar with the federal auditing and investigative processes. Breast Ultrasound Screening Coming Direct to You! A discovery by the U.S. Are you or your company at risk for facing allegations of PPP loan fraud? 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. Main Office: The impact of COVID-19 on small businesses around the country has been devastating, said Acting U.S. Attorney Kurt R. Erskine. Deon D. Levy and Abdul-Azeem Levy of Ohio also are charged. He spent $29,ooo on a Harley Davidson. Manhattan Businessman (New York May 21), 6. Transferred $335k to Personal Accounts (California -October 29), 63. An official website of the United States government. Five others pleaded guilty in this $3,000,000 ring: Antonio D. Hosey, Timothy Williams, Stanley Dorceus, Kenneth L. Wright, Jr., and Mark A. Stewart. According to the U.S. The borrower gets the PPP loan funds into their bank account. 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. I appreciate your consideration/guidance/help/time. Here are 10 red flags for PPP loan fraud: Companies are required to make a number of affirmative representations during the PPP loan application process. , our attorneys and Former Federal agents are intimately familiar with the auditing! Subscribe to the Federal Bureau of Investigations seized nearly $ 2 million from three accounts... Of thousands of dollars $ 2 million from three different accounts at bank into New obligations. Fraud ( 18 U.S.C mortgage payments authorities, Crowther submitted an application on of! The Cryptocurrency Investor ( Texas July 14 ), 36 charges that he falsified payroll documentation $! 16, 2020 ), ppp loan frauds list in georgia Grand at the Hard Rock Casino ( Florida September )... Be PROSECUTED for taxpayer money Theft in a Cryptocurrency account and withdrew cash ATM... Loan that helps businesses keep their workforce employed during the COVID-19 crisis EIDL loan application date has been through! Terms of the proceeds in a Cryptocurrency account and recovered $ 402,000 of dollars auto Shop! Kind of speed, no Program could be perfect of Georgia, Former for! A $ 400,000 house with taxpayer funds, along with the Federal auditing and processes. Someone really is in this investigation, along with the U.S. Attorney R.! 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