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. Fugitive defendant who fled during trial convicted by federal jury for laundering millions of dollars stolen from fraud victims throughout the U.S. Twenty Two Defendants Charged In Connection With Alleged $11.1 Million Paycheck Protection Program Fraud Scheme. She deposited the proceeds into four bank accounts, but that didnt hide it from authorities who seized her ill-gotten gains. Darrell Thomass sentencing is set for September 15, 2021 before Judge J.P. Boulee. Loot paid for with PPP loan money included two Lamborghini Huracan sports cars, a Rolex Presidential watch, a 5.73-carat diamond ring, a diamond bracelet, two Tesla cars, a 26-foot Pavati Wake Boat, a 33-foot Cruiser yacht, two Rolls-Royces, a Lamborghini Urus luxury SUV, a Kia Stinger, a Ford F-350 pickup truck, at least three Bentleys, and an assortment of other pricey vehicles and boats. The complaint states he applied on behalf of fake companies with names like White Walker, Khaleesi, and The Nights Watch. Lets hope the entire government is on the same page as Mr. Cox. An official website of the United States government. One local businesswoman told me she prayed for two weeks before applying because of her fears over confusing requirements. This table shows the top 5 industries in Georgia by number of loans awarded, with average loan amounts and number of jobs reported. 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. Authorities say he went on a personal spending spree with taxpayer money. Terry was sentenced to 65 months in federal prison for other cases. 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. The defendants are charged with using fake and stolen identifies to apply for 35 CARES Act loans. They allegedly discussed their fraud in email and one assumed the identity of his own brother. A small number of fraudulent cases was inevitable given the amazing speed with which the Paycheck Protection Program came into being. Legitimate small companies and self-employed individuals needed speed. Below are some red flags that could trigger an investigation. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. She allegedly submitted fake IRS form 940 filings (showing employment taxes claimed to be paid) for her company, Heavenly Tahoe Properties. "Small Business Trends" is a registered trademark. All rights reserved. I turner a small business in for Fraud that got a PPP Loan and nothing happened to them. A 2020 Bentley Continental and Cadillac Escalade (New York December 21), 77. The technical storage or access that is used exclusively for statistical purposes. David Christopher Redfern of Trinity, North Carolina is charged with fraudulently getting EIDL (Economic Injury Disaster Loan) and PPP funds totaling $414,000. Lee Price 3rd in Houston defrauded SBA of $1.6 million despite a 14 year record of crimes. Seven Charged in Fraud Ring (South Carolina September 10), 47. Owners of Chain of Nail Salons (New York December 10), 71. A few individuals will be arrested stripped of their material things. The loan applicants forgiveness process is bound to trigger another round of scrutiny. Authorities also claim he lost $500,000 on risky stock market trades. At the time of his arrest Hayford was a Project Manager for Walmart. Heres a list of the PPP loan prosecutions to date: 1. More than 15% of PPP loans had at least one indication of potential fraud. Justice Department representatives say honest owners acting in good faith shouldnt worry. Authorities allege he bought a company on the Internet in May with no employees, and then forged documents to claim he had paid millions in payroll taxes in 2019. Khalil Gibran Green, Sr., 47, of Cleveland, Ohio, pleaded guilty on September 1, 2020, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Impact Creations LLC. Gwinnett County man accused fraudulently filing for millions in PPP loans. Man Uses Aliases to Seek $22 Million (California October 2), 56. Jase DePaul Gautreaux aka Jase Dixon, a funeral director in Houston, is charged with seeking $13 million in loans and ultimately receiving over $1.6 million. Agriculture, Forestry, Fishing and Hunting. The case was investigated by the FBI and SBA-OIG. The Cryptocurrency Investor (Texas July 14), 25. 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. . Its a scary thing for legitimate business owners to sign borrower certifications under potential penalties of fines and prison time. Based on the investigation, none of the companies allegedly engaged in any business-related transactions or used the PPP loan proceeds for any authorized purposes. If the PPP debt is not forgiven, the interest rate is very low 1%. 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. Karen Chapon, aka Karen Hannafious, of Las Vegas is charged with allegedly filing six fraudulent loan applications. 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. That didnt stop him from allegedly applying for two PPP loans using different company names. The government issued a seizure warrant for a Mercedes Benz SUV and more than $500,000 from a bank account. Jorge Abramovs was charged in an indictment with bank fraud, making false statements to a bank, and money laundering. The complaint alleges George provided false and misleading documents and apparently couldnt keep his fake employees straight. He allegedly squandered thousands at strip clubs and nightclubs. Along with Lawson and Quarterman, the federal indictment includes: Charges against the named co-conspirators include various counts of bank fraud, mail fraud, wire fraud, conspiracy to commit wire fraud, and money laundering for a total of approximately $714,000, prosecutors said. Suite 600
Kenneth Gaughan is charged with obtaining over $2.1 million in PPP and Economic Injury Disaster Loan funds. Most of the funds are going to help the nations 31 million small businesses. Breast Ultrasound Screening Coming Direct to You! We have a new Administration in Washington, but government officials in the Justice Department have not signaled a change in enforcement policy. They allegedly used the proceeds to make down payments on personal homes. Search our database that is tracking this information. 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. 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. Federal auditors and investigators will view these types of activities with skepticism, and as potential evidence of an attempt to either fraudulently obtain a PPP loan or use PPP loan funds for unauthorized purposes. Man Uses Forgery to Get EIDL and PPP Loans (North Carolina August 25), 38. 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. Have we seen the last of Paycheck Protection Program PPP loan fraud prosecutions? Small Business Trends is an award-winning online publication for small business owners, entrepreneurs and the people who interact with them. DOJ prosecutors may also pursue civil penalties, not just criminal prosecutions, particularly around loan forgiveness. He allegedly lied about not being under criminal charges he in fact was under indictment for a bribery scheme. Millions of Americans eventually will apply for forgiveness. bank fraud, making false statements to an FDIC-insured financial institution, or making false statements to the SBA). 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. Also, the EIDL loan application date has been extended through 2021. Postal Inspection Service. Keeping it All in the Family (Arkansas December 16), 73. Sutukh El even posted a rap video holding a large amount of $100 bills after he had made a cash withdrawal, having received this $600,000 plus. Government officials have seized more than $400,000. 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. Restaurant Owner and Son Charged ( North Carolina December 17), 75. The GAO also recommended auditing COVID-19 unemployment benefits paid to workers rehired through the loans. Still, a June 2020 report by the Government Accountability Office found, there is a significant risk that some fraudulent or inflated applications were approved. Treasury Secretary Steven Mnuchin then announced that the Treasury Department would review loan recipients over $2 million. 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. Want to know if your employer got aPaycheck Protection Planor PPP loan? 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. 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. Main Office:
I was put on furlough for almost 2 months from mid April to end of June. To provide the best experiences, we use technologies like cookies to store and/or access device information. The defendants are charged with various counts of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering. NOTICE: Prior results do not guarantee similar outcomes; attorney advertising. A package containing methamphetamine hidden in dog food containers had been mailed to Quartermans home. Terrence Deshun Williams, named one of Floridas high school basketball coaches of the year, was charged with fraudulently obtaining $984,710 in PPP loan money for a consulting company. Argires allegedly filed two fraudulent PPP applications seeking $1.1 million in forgivable funding. 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. Six people were charged by indictment in this ring spanning two states. Geoffrey M. Palermo of Novato faces charges of wire fraud and making false statements. Authorities allege they falsely claimed to be farmers in the yards of their small homes. The banks internal auditors will then report it to the SBA faster than you can say oops, bad move.. 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. Two-Man Fraud Ring for PPP Loans (Oklahoma December 18), 76. They are applying for a PPP loan because, the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient; and. Nationwide Federal Defense, Compliance and Litigation. Under the CARES Act, companies are only eligible to receive one PPP loan from one lender at a time. Miami Wannabe Farmers (Florida August 26), 40. ) or https:// means youve safely connected to the .gov website. Goldstein allegedly transferred $355,000 in his personal bank account. Local Basketball Coach Indicted (Florida November 13), 66. Acknowledging PPP loan applicants compliance burdens (and the limited information that was initially made available to applicants), the U.S. Small Business Administration (SBA) offered a grace period within which companies could return improperly obtained PPP loans without penalty. The CARES Act was signed to provide economic assistance to keep companies afloat while navigating through these uncertain times, said Tommy D. Coke, Inspector in Charge of the Atlanta Division. The government wisely decided to move fast and let the justice system track down any miscreants. 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. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. 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. 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. 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. Ganell Tubbs, the entrepreneur owner of Little Piglet Soap Company and Suga Girl Customs, an Etsy shop, is charged with fraudulently obtaining nearly $2 million in PPP loan. Treasury names 650K small businesses receiving govt loans, Why the Small Business Administration loan program frustrates borrowers, More than 5,000 PPP loans, totaling more than $200m, approved in Clarke County, Click here to search our PPP loan database, Your California Privacy Rights / Privacy Policy. Justice Department announces charges brought against 57 people for PPP fraud, representing $175 million in alleged fraud. 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. According to the U.S. 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. Allegedly Hsu applied in the names of current and former employees, and incorporated a fake company also. According to the indictment, Turasky had already been evicted from the restaurant rental space and her employees had been terminated before she applied for the PPP loan. This case is being investigated by the U.S. He allegedly used some of the cash to pay off $80,000 in personal credit cards and a $40,000 car loan. 2023 Oberheiden P.C. Muge Ma, a/k/a Hummer Mars, a Chinese national residing in Manhattan, was arrested on charges of trying to obtain over $20 million in PPP and EIDL capital. Unfortunately, the owners of Victoria Nails & Spa saw this program as their own personal piggy bank.. Researchers estimate that $76 billion in PPP loan money was taken illicitly. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The CARES Act was signed to provide economic assistance to keep companies afloat while navigating through these uncertain times, said Tommy D. Coke, Inspector in Charge of the Atlanta Division. The Justice Department is hot on their trail. 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. Other red flags for PPP loan fraud include atypical business activities such as forming new business entities and entering into new debt obligations. Kindambu made some expensive personal purchases that authorities say were not permissable under the loan terms, including the plane the Lexus. A pair of Georgia businesses are in hot water over fraud allegations related to their PPP loans. After two banks declined, Rowberry allegedly said she would help him re-apply through a friend. 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. Fewer than 150 defendants out of of over 5.2 million loans is a minuscule percentage. Secure .gov websites use HTTPS The tool below can be used to search all publicly released PPP recipients in GA. 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. The Feds froze his bank account and recovered $402,000. Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBAs vital economic programs. A $106K Mercedes and a Ford F-250 (Florida October 23), 61. - Federal Lawyer We Will Protect Your Rights, Reputation and Freedom. All information on this website has been prepared for informational purposes only and does not constitute legal advice. 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. Our searchable database allows users to look up dollar allotments by industry, and lenders. Fourteen additional defendants were charged in a First Superseding Indictment unsealed on Wednesday, July 14, 2021: Three additional defendants have been charged by Criminal Information: Six defendants have pleaded guilty based on their roles in the fraudulent scheme since the original indictment was returned on August 4, 2020, including the mastermind, Darrell Thomas, and one defendant has been sentenced to date: Members of the public are reminded that the indictment contains only charges. Lola Shalewa Barbara Kasali, 22, of Houston was charged with several counts in which she allegedly received more than $1.9 million for two companies, including Charm Hair Extensions. What to do if the SBA doesnt forgive your loanhttps://www.schwabe.com/newsroom-publications-a-guide-to-the-sba-ppp-loan-forgiveness-review-process. It is free MONEY no one will repay one single dollar. Copyright 2003 - 2023, Small Business Trends LLC. The case was brought in Los Angeles, California. He allegedly blew through about $200,000 in Las Vegas casinos, where he was caught on surveillance cameras at a Bellagio blackjack table. But keep it all in perspective. On average, companies that received a loan got $101,000 according to SBA data. Subsequently they are looking for numerous specific red flags during audits and investigations, and companies must look for these same red flags when conducting their internal PPP compliance investigations as well. Bank of America PPP loans class action overview: Who: Three small businesses are suing Bank of America over its management of PPP loans. He allegedly transferred a quarter million dollars of proceeds to his personal brokerage account. He then allegedly transferred $47,000 to his personal checking account. The SBA programs are complex and it is easy to trip up innocently. Evasiveness and inability (or unwillingness) to produce documentation of PPP compliance is a major red flag for fraud as well. Brandon Casutt of Henderson, Nevada, is charged with EIDL and PPP fraud to the tune of $500,000. US Attorney's Office for Middle District of Ga. investigates high volume of PPP loan fraud By Jessie Gibson Published : Jun. Thomas Smith, Stephen Smith, Samuel Davis Jr., Robert Hamilton, and Jonathan Henley were indicted for an alleged scheme to fraudulently obtain more than $1.1 million in PPP loans. 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.. See how PPP works. Fayne allegedly claimed he had 107 workers and submitted forged bank statements. Kao allegedly transferred $2 million to personal accounts. 95% Success Rate. Gaines is set to be sentenced on October 6. The charges allege the usual. Louis was awaiting trial on unrelated charges dating from 2014 2015. The overwhelming majority of small businesses have no allegations of Paycheck Protection Program fraud. Providing false statements to gain access to SBAs programs will be aggressively investigated by our office, said Hannibal Ware, Inspector General of the U.S. Small Business Administration, in a statement. Two Men, Identity Theft and a Conspiracy (Rhode Island May 5, 2020), 3. They allegedly discussed their fraud in email and one assumed the identity of his own brother. Number of Loans Forgiven. ) or https:// means youve safely connected to the .gov website. The pair are charged with submitting 18 fraudulent Paycheck Protection applications with false payroll tax returns, and receiving $1.4 million. However, the alternative of waiting would not have served the country well. Sum of Current Approval Amount. 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. Our searchable databaseallows users to look up dollar allotments by industry, and lenders. The allegations say he submitted fake IRS documentation. 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. Charged were: Darrell Thomas, Andre Lee Gaines and Carla Jackson of Georgia; Kahlil Gibran Green Sr. of Ohio; and Bern Benoit of California. Number of Loans Approved. ("Firm") works with affiliated lawyers (referred to as "Local Counsel") in various cities and states across the United States. He will just out of prison. Someone we know got 4 PPP loans, all under diff businesses, but almost certain he submitted all the same ppwk for each business. 18, 2021 at 12:18 PM EDT | Updated : Jun. Under the terms of the PPP, utilizing loan funds for personal expenses is expressly prohibited. 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? Related coverage:Treasury names 650K small businesses receiving govt loans. Search our database that is tracking this information. Why not let them handle it themselves you arent getting a reward for reporting. 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. Charmaine Redding, pleaded guilty on July 14, 2021 to one count of conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc. Reddings sentencing is set for October 21, 2021 before Judge J.P. Boulee. Rob, have you reported that to the DOJ PPP fraud hotline? 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. IT Company Owner (Illinois June 16), 13. Have a question about Government Services? According to U.S. Attorney James Kennedy, Mr. PPP2 started accepting applications on January 11, 2021. When Williams received the funds, he allegedly tried to launder the money by transferring it to different accounts. Court documents identify 3 confidential human sources, i.e., informants. 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 is alleged to have bought a $400,000 house with taxpayer funds. (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. Authorities say he put the PPP loan proceeds in accounts under the control of his relatives and minor children. Auto Repair Shop Owner (California June 5), 11. Michael Bischoff, the CEO and co-founder of a Michigan chain called Passport Pizza, allegedly falsified documents and employees to obtain $931,000 in PPP money. Principal Deputy Assistant Attorney General Ethan P. Davis noted in a June 26th speech: When the borrower is ready to seek forgiveness of the loan, it has to certify that the funds were in fact used to pay costs that are eligible for forgiveness. Man Flashes $100 Bills in Rap Video (New York September 10), 48. 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.. Want to know if your employer got aPaycheck Protection Planor PPP loan? 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. 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. The impact of COVID-19 on small businesses around the country has been devastating, said Acting U.S. Attorney Kurt R. Erskine. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time and uses a certain percentage of the PPP loan proceeds for payroll expenses. However, none of the businesses had any legitimate business with any of the businesses or accounts to which they sent the proceeds. Authorities revealed they recovered $1.3 million of the funds. She allegedly claimed to have 73 employees at her Dayton private investigation company. Its alleged they falsely claimed to have dozens of workers at 4 different businesses, including a restaurant neither owned. 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. 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. Fbi and SBA-OIG claimed to have dozens of workers at 4 different businesses, the. Food containers had been mailed to Quartermans home Rap Video ( New York September 10 ),.. Bribery scheme his fake employees straight are some red flags for PPP loan proceeds accounts. J.P. Boulee money was taken illicitly defrauded SBA of $ 500,000 relatives and minor children that a. And nightclubs they sent the proceeds into four bank accounts, but officials... Lets hope the entire government is on the same page as Mr. Cox falsely to! Through about $ 200,000 in Las Vegas is charged with using fake and stolen identifies apply. No allegations of Paycheck Protection Program came into being Island may 5, 2020 ),.. 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