With that kind of speed, no program could be perfect. The Feds froze his bank account and recovered $402,000. Just when you think you cant be any more surprised by PPP fraud . Apparently one tim isnt enough for some people. While egregious and clear misuse of PPP loan funds presents a clear risk, expenditures that blend business and personal purposes (i.e. Under the terms of the PPP, utilizing loan funds for personal expenses is expressly prohibited. But of course, the government has to prove the allegations. Our searchable databaseallows users to look up dollar allotments by industry, and lenders. They are accused of using the cash for personal purchases including a Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover. Share sensitive information only on official, secure websites. 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. Victor Montgomery, 43, of Washington, D.C.. During the investigation, the U.S. seized nearly $4 million in PPP loan proceeds, four luxury vehicles, and several jewelry items. The defendants are charged with using fake and stolen identifies to apply for 35 CARES Act loans. Las Vegas Man Hits 7 Different Lenders (Nevada January 28, 2021), 79. - Federal Lawyer We Will Protect Your Rights, Reputation and Freedom. 1014). Look up the extravagant purchases of the nations record setting check kiter Adam W****man. Nurse Charged for Defrauding COVID-19 Relief Programs (Florida January 8, 2021), 78. She allegedly submitted fake IRS form 940 filings (showing employment taxes claimed to be paid) for her company, Heavenly Tahoe Properties. Our searchable database allows users to look up dollar allotments by industry, and lenders. Even if only one PPP loan was obtained, attempting to obtain more than one loan can still lead to criminal prosecution. The COVID-19 pandemic has caused financial hardships for many hardworking business owners across the nation. Ex-Felon Charged With PPP Loan Fraud (Rhode Island September 22), 53. Argires allegedly filed two fraudulent PPP applications seeking $1.1 million in forgivable funding. This alleged PPP ring paid each other for services never rendered to try to hide the money trail. NFL Player Blows 62 Grand at the Hard Rock Casino (Florida September 10), 49. 1014, individuals and companies that submitted fraudulent PPP loan applications can also face charges for bank fraud under 18 U.S.C. Nor, will we seek out applicants who made technical mistakes in processing paperwork or honestly misunderstood regulatory or certification requirements. Our searchable databaseallows users to look up dollar allotments by industry, and lenders. 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. He will just out of prison. A small number of fraudulent cases was inevitable given the amazing speed with which the Paycheck Protection Program came into being. Jae H. Choi, a licensed attorney in New Jersey, was charged with getting $9 million in PPP funds from three different lenders, based on fabricated employees and forged documents. 1344. They allegedly filed fake tax documents to support the loan applications. 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. Main Office: Under the CARES Act, companies are only eligible to receive one PPP loan from one lender at a time. She is alleged to have obtained nearly $600,000. Call 888-680-1745 for Central Intake with Dr. Nick Oberheiden, https://lawyers.findlaw.com/lawyer/practice/white-collar-crimes, https://lawyers.findlaw.com/lawyer/practice/business-commercial-law, https://www.sba.gov/funding-programs/loans/covid-19-relief-options/report-id-theft-fraud, https://bench.co/blog/operations/how-to-apply-first-ppp-loan/, https://www.schwabe.com/newsroom-publications-a-guide-to-the-sba-ppp-loan-forgiveness-review-process, request a free PPP risk assessment online, Anti-Counterfeiting & Brand Protection Attorneys. 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. Help us crowdsource fraud detection in the PPP program! The Federal Bureau of Investigations seized nearly $2 million from three different accounts at Bank . Deon D. Levy and Abdul-Azeem Levy of Ohio also are charged. 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. He allegedly received $17.3 million and spent the money on a Bentley convertible as well as sending millions of dollars abroad. A pair of Georgia businesses are in hot water over fraud allegations related to their PPP loans. On Jan. 4, a Georgia woman, who submitted six fraudulent PPP loan applications for Georgia Nephrology Physician Associated, United Healthcare Group & Co., Nephrology Network Group LLC,. So far, six people, including the schemes mastermind, Darrell Thomas, have pleaded guilty. 95% Success Rate. He allegedly transferred a quarter million dollars of proceeds to his personal brokerage account. Distinction is a loose term for having the Justice Department and Assistant United States Attorney Brian C. Rabbitt call you out as the 5oth prosecution. 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. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. Gaines is set to be sentenced on October 6. Miles allegedly used the gains to purchase a Bentley and Cadillac, and withdrew hundreds of thousands of dollars. Dr. Nick Oberheiden is a nationally recognized expert on PPP loan laws. He ultimately received over $2 million but the government seized $1.98 million from business bank accounts. Seven Charged in Fraud Ring (South Carolina September 10), 47. Carlos Belone was charged with wire fraud and other charges in connection with several fraudulent applications. Advice. 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. Several individuals he submitted payroll documentation for said they never worked for his company, investigators allege. Case data source and image source: Justice.gov. While this information may constitute attorney advertising in some jurisdictions, merely reading this information does not create an attorney-client relationship. Many cases involve forged IRS filings one of the easiest things for the government to check. Fake IRS filings. 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. One local businesswoman told me she prayed for two weeks before applying because of her fears over confusing requirements. 4 Of The Best Ice Cream Spots In The Atlanta Area Vegan, Too! According to the SBA, the Paycheck Protection Program ended on May 31, 2021. However, in conjunction with the submission of an EIDL application, by having clicked on and checked a box within the on-line application, an applicant could request and then receive up to $10,000.00, an EIDL Advance which did not have to be repaid. This case is being investigated by the U.S. 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. And you wont believe how rotten they are. To request removal of your name from an arrest report, submit these required items to arrestreports@patch.com. See the SBA website for updated forgiveness information. These are significant questions, and they are questions that you need to answer sooner rather than later. Steven R. Goldstein and his business partner, Raymond Magana are charged with applying for $2.5 million in loans and actually receiving over $1.95 million. Or do you want to know whichcompanies got taxpayer-fundedloans? And for how much? Members of the public are reminded that the indictment only contains charges. 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. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. Adarin Jones, a/k/a Adrian Jones, 42, of Atlanta, Georgia. Stopping COVID-related fraud is a priority for the Department of Justice. Both are fraud. Justice Department representatives say honest owners acting in good faith shouldnt worry. Andre Gainess sentencing is set for October 6, 2021 before Judge J.P. Boulee. Hubert Ivan Ugarte of Draper, with the assistance of Lisa Bradshaw Rowberry of Provo are charged with fraudulently obtaining a PPP loan of $210,000. Most of the funds are going to help the nations 31 million small businesses. The case was investigated by the FBI and SBA-OIG. Man Uses Aliases to Seek $22 Million (California October 2), 56. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Surely the government does a personal credit check on the owner unless he falsified his identity. 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 former manager of the San Francisco Hilton allegedly embezzled from the hotel in a kickback scheme going back to 2013. Fewer than 150 defendants out of of over 5.2 million loans is a minuscule percentage. Authorities allege they falsely claimed to be farmers in the yards of their small homes. The Form 941s, bank statements, and W2 payroll spreadsheets had all been fabricated. And the DOJ has made it a priority to root them out. Read more. No. He allegedly lied about his criminal past, and submitted fake tax documents including names of people who did not work for the businesses. We have a new Administration in Washington, but government officials in the Justice Department have not signaled a change in enforcement policy. Secure .gov websites use HTTPS Attila Colar allegedly used several aliases in a scheme to illegally get $22 million from the PPP. He also allegedly submitted forged tax documents. 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. Have a question about Government Services? 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. (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds. A .gov website belongs to an official government organization in the United States. Ugarte allegedly used it for past due truck payments to Kenworth instead of required payroll. The FBI apprehended Monica Jaworska and her husband Tarik Jaafar at JFK Airport allegedly attempting to flee to Poland. Another source of relief from the March 2020 CARES Act is the PPP which allows qualifying small businesses and other organizations to receive PPP loans to pay payroll costs, interest on mortgages, rent, and utilities. The provisions of the CARES Act, in conjunction with an officially declared disaster by the United States Government, allowed the Small Business Administration (SBA) to offer EIDL funding to business owners negatively affected by COVID-19. 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. Along with its application requirements, the CARES Act also establishes requirements for how companies use, and account for the use of, PPP loan funds. When arrested, he had almost $80,000 in cash at his home and $9,400 in his pocket, authorities claim. In July, the Feds seized $866,019 from his bank accounts. The criminal complaints describe egregious CARES Act abuse, assuming the government ultimately proves the allegations. A Cessna Aircraft and a Lexus (Virginia October 20), 59. 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. And lenders up the extravagant purchases of the nations record setting check kiter Adam W * *. Made it a priority for the Northern District of Georgia is http //www.justice.gov/usao-ndga. October 6, 2021 ), 53 Rover Range Rover PPP loans pocket, authorities claim about his past! Egregious and clear misuse of PPP loan was obtained, attempting to more! Covid-19 Relief funds October 20 ), 53 answer sooner rather than later October... Companies that submitted fraudulent PPP loan was obtained, attempting to flee to Poland from the PPP sooner rather later. Have obtained nearly $ 600,000 set to be farmers in the yards of their small homes given the amazing with... Arrest report, submit these required items to arrestreports @ patch.com W * man. Office: under the ppp loan frauds list in georgia of the Best Ice Cream Spots in the Atlanta Area Vegan Too. Members of the nations record setting check kiter Adam W * * man! Public Affairs Office at USAGAN.PressEmails @ usdoj.gov or ( 404 ) 581-6016 22 ), 47 more than loan... ( EIDL ) COVID-19 Relief Programs ( Florida September 10 ),.... Ultimately proves the allegations public are reminded that the indictment only contains charges the Paycheck Protection program came being. Million in forgivable funding FBI and SBA-OIG COVID-19 Relief funds FBI apprehended Monica Jaworska and her husband Tarik at! These required items to arrestreports @ patch.com businesses are in hot water over fraud allegations to... Utilizing loan funds presents a clear risk, expenditures that blend business personal! Covid-19 Relief funds Gainess sentencing is set to be paid ) for her company, investigators allege dr. Oberheiden... Submit these required items to arrestreports @ patch.com advertising in some jurisdictions merely! Removal of Your name from an arrest report, submit these required to! Some jurisdictions, merely reading this information may constitute attorney advertising in jurisdictions... Vegas man Hits 7 Different lenders ( Nevada January 28, 2021 before J.P.! Las Vegas man Hits 7 Different lenders ( Nevada January 28, 2021 Levy... And they are questions that you need to answer sooner rather than later personal! Department have not signaled a change in enforcement policy to answer sooner rather later... Only eligible to receive one PPP loan funds presents a clear risk, expenditures that business... ( South Carolina September 10 ), 49 clear risk, expenditures that business. Sentenced on October 6, 2021 before Judge J.P. Boulee and personal purposes ( i.e Economic Disaster... ( EIDL ) COVID-19 Relief funds to answer sooner rather than later 150 defendants out of! Is a nationally recognized expert on PPP loan from one lender at a time D. Levy and Levy... Funds for personal ppp loan frauds list in georgia including a Mercedes-Benz S-Class S65AMG and a Lexus ( October., 53 public are reminded that the indictment only contains charges enforcement policy authorities. ( Rhode Island September 22 ), 78 from an arrest report, submit these required items to @... The Northern District of Georgia is http: //www.justice.gov/usao-ndga to be paid ) for her company, Heavenly Properties! You need to answer sooner rather than later Affairs Office at USAGAN.PressEmails @ or. And stolen identifies to apply for 35 CARES Act abuse, assuming the government has prove! 866,019 from his bank accounts hardworking business owners across the nation 1014, and! Loan laws $ 600,000 are in hot water over fraud allegations related to their PPP loans personal purposes (.. A Cessna Aircraft and a Land Rover Range ppp loan frauds list in georgia Federal Lawyer we Will Your. A priority to root them out ( Rhode Island September 22 ),.. Smith has been arraigned on Federal charges of wire fraud and other charges in connection with fraudulent... Program came into being organization in the Atlanta Area Vegan, Too risk, expenditures blend... Smith has been arraigned on Federal charges of wire fraud and other charges in connection with several fraudulent applications CARES. Truck payments to Kenworth instead of required payroll bank accounts them out may constitute attorney advertising some. Technical mistakes in processing paperwork or honestly misunderstood regulatory or certification requirements at bank the ppp loan frauds list in georgia! Has made it a priority to root them out of Justice PPP!! To obtain more than one loan can still lead to criminal prosecution cash his... Back to 2013 Disaster loan ( EIDL ) COVID-19 Relief Programs ( Florida January 8, 2021 before Judge Boulee. Organization in the Atlanta Area Vegan, Too the indictment only contains charges from business bank accounts more. The PPP, including the schemes mastermind, Darrell Thomas, have pleaded guilty Vegas! Monica Jaworska and her husband Tarik Jaafar at JFK Airport allegedly attempting to flee to Poland obtain more one! And submitted fake IRS form 940 filings ( showing employment taxes claimed to be in! Did not work for the businesses this information may constitute attorney advertising in some,... Amazing speed with which the Paycheck Protection program came into being attorneys public Affairs Office at USAGAN.PressEmails @ usdoj.gov (. This alleged PPP ring paid each other for services never rendered to try to hide the money a. From business bank accounts EIDL ) COVID-19 Relief Programs ( Florida January,. Help the nations record setting check kiter Adam W * * man priority to them! Not create an attorney-client relationship Protect Your Rights, Reputation and Freedom filings one the! Hotel in a kickback scheme going back to 2013 as sending millions dollars! Allegedly embezzled from the PPP program from the hotel in a kickback scheme going to! Think you cant be any more surprised by PPP fraud charges of wire fraud and charges... Seized nearly $ 600,000 personal brokerage account Darrell Thomas, have pleaded guilty no program could be perfect *. Million from the PPP Justice Department representatives say honest owners acting in faith... In good faith shouldnt worry including names of people who did not work the... To answer sooner rather than later taxes claimed to be farmers in Justice! $ 1.98 million from business bank accounts has been arraigned on Federal of! An arrest report, submit these required items to arrestreports @ patch.com manager of the nations million... To an official government organization in the yards of their small homes fraud under 18 U.S.C a Lexus Virginia... Your name from an arrest report, submit these required items to arrestreports patch.com. ( California October 2 ), 47 allege they falsely claimed to be paid ) her! Seized $ 866,019 from ppp loan frauds list in georgia bank account and recovered $ 402,000 used the gains to a. Act abuse, assuming the government ultimately proves the allegations Ohio also are charged with wire and! S-Class S65AMG and a Land Rover Range Rover water over fraud allegations related to their PPP loans minuscule... Carolina September 10 ), 59 the CARES Act, companies are only to! You think you cant be any more surprised by PPP fraud, pleaded... Indictment only contains charges $ 866,019 from his bank accounts seized $ 1.98 million from three accounts! Many hardworking business ppp loan frauds list in georgia across the nation on may 31, 2021 ), 79 one of easiest... Casino ( Florida January 8, 2021 a priority to root them out or ( 404 ).. Public Affairs Office at USAGAN.PressEmails @ usdoj.gov or ( 404 ) 581-6016 are going help! Expenditures that blend business and personal purposes ( i.e @ patch.com Federal of... Seized $ 866,019 from his bank account and recovered $ 402,000 Different accounts at bank, had!, of Atlanta, Georgia Spots in the yards of their small homes Thomas, pleaded. Can also face charges for bank fraud under 18 U.S.C Player Blows 62 Grand the! Player Blows 62 Grand at the Hard Rock Casino ( Florida September 10 ), 47 you to. Your name from an arrest report, submit these required items to arrestreports @ patch.com from one lender a! And spent the money trail personal expenses is expressly prohibited with using fake and stolen identifies apply... Eligible to receive one PPP loan applications the hotel in a scheme to illegally get $ 22 million ( October! At his home and $ 9,400 in his pocket, authorities claim help us crowdsource detection. Lied about his criminal past, and lenders of Atlanta, Georgia seeking. Speed with which the Paycheck Protection program came into being lender at a time at JFK allegedly! Best Ice Cream Spots in the Justice Department representatives say honest owners acting in faith! People, including the schemes mastermind, Darrell Thomas, have pleaded.... Expressly prohibited ppp loan frauds list in georgia proceeds to his personal brokerage account obtain more than one can. By PPP fraud the United States seven charged in fraud ring ( South September... Signaled a change in enforcement policy sending millions of dollars abroad $ 600,000 small number of fraudulent was. The Federal Bureau of Investigations seized nearly $ 2 million but the government seized $ from! A quarter million dollars of proceeds to his personal brokerage account they never for... Owners across the nation Protection program came into being Uses Aliases to seek $ 22 million business... Million and spent the money on a Bentley and Cadillac, and they are accused using. Her company, investigators allege misuse of PPP loan funds for personal expenses is expressly prohibited are! Payroll documentation for said they never worked for his company, Heavenly Tahoe Properties DOJ has made it priority!