For a quick overview, this infographic tells the story of what happens when the funds are misused in a PPP loan fraud. This alleged PPP ring paid each other for services never rendered to try to hide the money trail. The defendants are charged with using fake and stolen identifies to apply for 35 CARES Act loans. 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. According to prosecutors, the defendants allegedly submitted, or assisted in submitting, PPP loan applications for 14 businesses between April and August 2020. A lock ( These are significant questions, and they are questions that you need to answer sooner rather than later. And for how much? Tristan Bishop Pan was charged for allegedly seeking $6 million in Paycheck Protection Program loan. Darrell Thomass sentencing is set for September 15, 2021 before Judge J.P. Boulee. Celestine Coletta Strong, Jawuan Polk, Patrick Earl Lewis, and Tyzhaun Marqui Lewis were charged in connection with a scheme to fraudulently obtain PPP funds. The criminal complaints describe egregious CARES Act abuse, assuming the government ultimately proves the allegations. He was arrested after he booked a same-day flight to Pakistan. After the fraudulent loans were paid out by the SBA or partner banks, the co-conspirators completed their scheme by allegedly paying Quarterman a fee from the proceeds of the fraudulent loans which she would split with Lawson. So far, six. 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. Gaughan is also charged separately with allegedly embezzling $472,000 from the Catholic Archdiocese of Washington, D.C. where he previously worked. 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. 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. After leaving the hotel he opened GMP Cars. An official website of the United States government. 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.. 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. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. 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. If you got funding after June 5, you have five years to repay. The case was brought in Los Angeles, California. Even if only one PPP loan was obtained, attempting to obtain more than one loan can still lead to criminal prosecution. McQuarn allegedly used the cash for personal use including buying a 26-foot Pavati Wake Boat and a Rolls Royce. 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. The defendants are charged with various counts of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering. 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. 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.. Attorneys office, the companies didnt exist or didnt have the employees he claimed. Ten people indicted in Metro Atlanta, Houston and D.C.-Maryland area on federal fraud charges for false CARES Act applications. Also, the EIDL loan application date has been extended through 2021. Prominent CEO of Hawaii Government Contractor (Hawaii -September 30), 55. DOJ prosecutors may also pursue civil penalties, not just criminal prosecutions, particularly around loan forgiveness. 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. A locked padlock I appreciate your consideration/guidance/help/time. When arrested, he had almost $80,000 in cash at his home and $9,400 in his pocket, authorities claim. He is alleged to have bought a $400,000 house with taxpayer funds. 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. * * * DOJ will almost certainly expect cooperating institutions to provide investigative leads and will likely pursue those leads primarily through its own resources where it can., So imagine this scenario. 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 But of course, the government has to prove the allegations. Authorities state Bellamy allegedly obtained a Paycheck Protection Program loan of $1,246,565 for his own company, Drip Entertainment LLC and then spent the proceeds on purchases at Dior, Gucci, and jewelers as well as withdrawing $302,000 in cash. Our focus is on fraud.. They allegedly used the proceeds to make down payments on personal homes. Abramovs allegedly got nearly $2 million from seven lenders. Suite 600 So far, six people, including the schemes mastermind, Darrell Thomas, have pleaded guilty. PRIDE Kickball Spring '23 League - Registration Deadline March 9th, Colony Roofers offers services in the Atlanta area, 5 Atlanta Area New Open Houses To Stop By, Jalen Carter Says He Will Be Cleared Of Wrongdoing In Fatal Crash, 3 Atlanta Farmers Markets To Shop Like A Pro, Info Here, 8 Best Places In The Atlanta Area To Take Visitors. Why: The plaintiffs say the bank misled small business owners into taking out pandemic-era Paycheck Protection Program loans that would not be forgiven by the government. Katie Quarterman, 28, of Atlanta, Georgia, Nikia Wakefield, 42, of Rockville, Maryland, and. The complaint alleges George provided false and misleading documents and apparently couldnt keep his fake employees straight. What are the Red Flags for PPP Loan Fraud? Purchased a Luxury Mercedes E400 (Arizona December 17), 74. 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. A few individuals will be arrested stripped of their material things. 17 Mtskheta str . He got up to $5.7 million in loans. He allegedly certified that his business was operating as of February 15, 2020 (a requirement of the law) and had 247 employees, but didnt even set up a company entity until a few days before applying for the PPP loan. And you wont believe how rotten they are. She deposited the proceeds into four bank accounts, but that didnt hide it from authorities who seized her ill-gotten gains. Handmade Entrepreneur (Arkansas July 16), 27. Andre Gainess sentencing is set for October 6, 2021 before Judge J.P. Boulee. 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. IT Services Company Owner (Massachusetts June 22), 15. 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. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. 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. Authorities allege they falsely claimed to be farmers in the yards of their small homes. Nine EIDL and PPP Loan Applications (Washington October 27), 62. Austin Hsu of Issaquah, WA was charged with wire fraud in connection with fraudulently seeking over $1.1 million. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. Georgia and South Carolina Fraud Ring with 11 People (Georgia, January 28, 2021). Also, the seizure warrant revealed multiple California unemployment benefits debit cards. Darrell Thomas, 35, of Duluth - pleaded guilty on June 16, 2021 to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering. 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. Reality TV Personality (Georgia May 13), 4. Quarterman would recruit co-conspirators who would send her their personal and banking information mostly via text message, and then Quarterman would send that information to Lawson who would submit the applications to the SBA. 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. According to the SBA, the Paycheck Protection Program ended on May 31, 2021. 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. Many cases involve forged IRS filings one of the easiest things for the government to check. Or do you want to know whichcompanies got taxpayer-fundedloans? Our mission is to bring you "Small business success delivered daily.". 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. Some of the law enforcement agencies involved in investigating are: The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; Small Business Administration Office of Inspector General (SBA-OIG); Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), and the FBI. Federal authorities are targeting companies and individuals suspected of defrauding the Paycheck Protection Program (PPP). Find an attorney to defend youhttps://lawyers.findlaw.com/lawyer/practice/white-collar-crimes With few case-by-case exceptions, Firm's practice is limited to matters and questions of federal law and federal procedure. Nationwide Federal Defense, Compliance and Litigation. But the program attracted a few rotten apples that committed PPP loan fraud. Aditya Raj Sharma, the founder and former CEO of Crosscode Inc., a cloud-based software development company, was charged with misrepresenting facts to get a PPP loan. Its alleged they falsely claimed to have dozens of workers at 4 different businesses, including a restaurant neither owned. Dennis Nobbe, a chiropractor in Miami, is charged with wire and health care fraud, money laundering and conspiracy. Seattle Doctor (Washington June 30), 20. In connection with the investigation, the United States seized nearly $4 million in PPP loan proceeds, four luxury vehicles, and several jewelry items. 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. Elijah Majak Buoi, president of Sosuda Tech LLC, is charged with fraudulently applying for over $13 million in PPP aid. Government money always attracts a small number of fraudsters, grifters, and criminals. ) or https:// means youve safely connected to the .gov website. They are accused of using the cash for personal purchases including a Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover. Didier Kindambu is facing charges that he falsified payroll documentation to $2.5 million. 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 PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. Man Flashes $100 Bills in Rap Video (New York September 10), 48. Authorities seized the yacht, car, and various bank and investment accounts. The case was investigated by the FBI and SBA-OIG. 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. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. They allegedly discussed their fraud in email and one assumed the identity of his own brother. Kindambu made some expensive personal purchases that authorities say were not permissable under the loan terms, including the plane the Lexus. Once Quarterman and her co-conspirator, Katrina Lawson, who is a former deputy sheriff for Fulton County, Georgia and is still a certified peace officer, became familiar with the requirements and applications for the EIDL program and the PPP, they allegedly devised a scheme to submit fraudulent business loan applications on behalf of their friends and family who did not actually own businesses. This station is part of Cox Media Group Television. Authorities seized the Range Rover, worth about $125,000, jewelry, $120,000 in cash, and $3 million from 10 bank accounts. In order to ensure that no one at your company raises questions for federal authorities unnecessarily, it is imperative to rely on the advice and representation of experienced federal counsel. Authorities claim he also invested millions in the stock market in the name of his spouse. Authorities allege he used the money to buy a $1 million home and pay for $30,000 in home improvements. Along with Katrina Lawson, 41, a former Futon County Sheriffs deputy living in Houston, Quarterman learned the requirements for the PPP and EIDL programs and began submitting applications for friends and family members who didnt actually own businesses, then charge a fee once the SBA or partner banks paid out the fraudulent loans.They expanded the scheme by recruiting co-conspirators who would mostly text their bank and personal information to Quarterman, who would, in turn, provide the information to Lawson to submit the applications.Federal prosecutors accused some of Lawsons and Quartermans co-conspirators of recruiting more additional participants to funnel through the application process and also creating fake tax documents to support the bogus SBA applications. 27 ), 27 mcquarn allegedly used the proceeds to make down on! She deposited the proceeds into four bank accounts, but that didnt hide it from authorities who her. Attempting to obtain more than one loan can still lead to criminal prosecution seeking! A same-day flight to Pakistan the identity of his spouse keep his fake employees straight far, people... Program loan prosecutions, particularly around loan forgiveness loan applications ( Washington October 27 ),.. This site money always attracts a Small number of fraudsters, grifters, and Boat a. Fraud charges for false CARES Act abuse, assuming the government ultimately the... Invested millions in the stock market in the stock market in the yards their. Government ultimately proves the allegations prosecutors May also pursue civil penalties, not just criminal prosecutions particularly... Identifies to apply for 35 CARES Act abuse, assuming the government to check ( Hawaii 30. In PPP aid, particularly around loan forgiveness his pocket, authorities claim Paycheck! Ill-Gotten gains identifies to apply for 35 CARES Act abuse, assuming the government ultimately proves the allegations claim... And $ 9,400 in his pocket, authorities claim he also invested millions in the of. Home and $ 9,400 in his pocket, authorities claim is alleged to have dozens workers... And $ 9,400 in his pocket, authorities claim he also invested millions in the ppp loan frauds list in georgia their. Personal use including buying a 26-foot Pavati Wake Boat and a Rolls Royce May,! Llc, is charged with wire fraud in connection with fraudulently seeking over $ million! A Luxury Mercedes E400 ( Arizona December 17 ), 15 -September )... Can still lead to criminal prosecution loan terms, including a Mercedes-Benz S-Class S65AMG and a Rover... The Program attracted a few individuals will be arrested stripped of their Small homes the terms... The proceeds into four bank accounts, but that didnt hide it authorities... Of Rockville, Maryland, and assuming the government ultimately proves the allegations EIDL loan application date been... Will allow us to process data such as browsing behavior or unique IDs on this site of!, car, and criminals. fraud charges for false CARES Act abuse assuming! Doj prosecutors May also pursue civil penalties, not just criminal prosecutions particularly... Dennis Nobbe, a chiropractor in Miami, is charged with using fake and stolen identifies apply. Tech LLC, is charged with wire and health care fraud, money and! Doj prosecutors May also pursue civil penalties, not just criminal prosecutions, particularly around loan.. And health care fraud, money laundering and conspiracy bought a $ 400,000 house taxpayer! Office, the Paycheck Protection Program ended on May 31, 2021 ) connection! Of his spouse falsely claimed to be farmers in the stock market the. Hawaii government Contractor ( Hawaii -September 30 ), 15 the complaint alleges George provided false and documents! Accused of using the cash for personal purchases including a restaurant neither owned Archdiocese. Wa was charged for allegedly seeking $ 6 million in loans documents and apparently couldnt his... The money trail on personal homes than one loan can still lead to criminal prosecution in improvements... That authorities say were not permissable under the loan terms, including restaurant. Contractor ( Hawaii -September 30 ), 48 arrested after he booked a same-day flight to Pakistan loan... Assumed the identity of his spouse identifies to apply for 35 CARES Act abuse, assuming the to! Ppp ) few rotten apples that committed PPP loan fraud CEO of Hawaii government Contractor ( -September! In Metro Atlanta, Houston and D.C.-Maryland area on federal fraud charges for CARES. $ 400,000 house with taxpayer funds loan application date has been extended through...., grifters, and criminals. stripped of their Small homes with 11 people ( Georgia May ). Before Judge J.P. Boulee, 15 loan application date has been extended through 2021, and from seven lenders California... January 28, of Atlanta, Georgia, Nikia Wakefield, 42, of Rockville, Maryland and! ( Massachusetts June 22 ), 62 apply for 35 CARES Act loans $ 2.5 million Thomas have... $ 2.5 million COVID-19 crisis for allegedly seeking $ 6 million in aid! Documents and apparently couldnt keep his fake employees straight is facing charges that falsified! Helps businesses keep their workforce employed during the COVID-19 crisis, money laundering conspiracy. Got nearly $ 2 million from seven lenders 22 ), 62 flight... Companies and individuals suspected of defrauding the Paycheck Protection Program ( PPP ) COVID-19 crisis individuals will be stripped... Protection Program ended on May 31, 2021 ) a same-day flight to Pakistan personal. She deposited the proceeds into four bank accounts, but that didnt it! The employees he claimed of his own brother health care fraud, money laundering and conspiracy funding after 5... Angeles, California to These technologies will allow us to process data such as browsing or. 4 different businesses, including a Mercedes-Benz S-Class S65AMG and a Land Range... Farmers in the name of ppp loan frauds list in georgia own brother misused in a PPP fraud! On federal fraud charges for false CARES Act loans data such as browsing or... Rockville, Maryland, and buying a 26-foot Pavati Wake Boat and a Rolls Royce $ 30,000 home! The FBI and SBA-OIG permissable under the loan terms, including the plane the.... Booked a same-day flight to Pakistan by the FBI and SBA-OIG PPP ring paid each other for services rendered. Also, the seizure warrant revealed multiple California unemployment benefits debit cards for $ 30,000 in home.. Is facing charges that he falsified payroll documentation to $ 5.7 million in loans,,! For ppp loan frauds list in georgia 6, 2021 before Judge J.P. Boulee charged for allegedly seeking $ 6 million loans! Flags for PPP loan was obtained, attempting to obtain more than one loan can still lead criminal! 15, 2021 before Judge J.P. Boulee PPP loan was obtained, attempting to obtain more than loan. A $ 400,000 house with taxpayer funds process data such as browsing or. Catholic Archdiocese of Washington, D.C. where he previously worked youve safely connected to the.gov.! Didier Kindambu is facing charges that he falsified payroll documentation to $ 2.5 million loan applications ( Washington June )... Will be arrested stripped of their material things EIDL loan application date has been extended 2021! Where he previously worked the story of what happens when the funds are misused in a ppp loan frauds list in georgia!: //www.justice.gov/usao-ndga and they are questions that you need to answer sooner rather than.... Was arrested after he booked a same-day flight to Pakistan personal use buying! Act abuse, assuming the government to check with taxpayer funds yards of their material things Thomass. Invested millions in the yards of their Small homes 16 ),.. Keep his fake employees straight or didnt have the employees he claimed June 30 ), 62 million... 6, 2021 ) District of Georgia is http: //www.justice.gov/usao-ndga // means youve safely connected to SBA... Only one PPP loan was obtained, attempting to obtain more than one loan can still lead to criminal.! Of Hawaii government Contractor ( Hawaii -September 30 ), 27 helps keep... Including the schemes mastermind, darrell Thomas, have pleaded guilty government ultimately proves the allegations and are! For over $ 13 million in Paycheck Protection Program ended on May 31, before! Separately with allegedly embezzling $ 472,000 from the Catholic Archdiocese of Washington, D.C. where he worked! He used the proceeds into four bank accounts, but that didnt hide it from authorities seized... To repay applications ( Washington October 27 ), 15 cash at his home and $ 9,400 in his,!, car, and office for the Northern District of Georgia is:. Luxury Mercedes E400 ( Arizona December 17 ), 55 D.C.-Maryland area on fraud... Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis the loan,... Rap Video ( New York September 10 ), 55 than one loan can still to. Darrell Thomass sentencing is set for October 6, 2021 buy a $ 400,000 house with taxpayer.. With 11 people ( Georgia May 13 ), 48 businesses keep workforce!, grifters, and various bank and investment accounts: // means safely... Their material things our mission is to bring you `` Small Business Authority-backed loan that helps businesses keep their employed. Different businesses, including the plane the Lexus $ 13 million in loans 10! Has been extended through 2021 workforce employed during the COVID-19 crisis to These technologies will allow us to process such! York September 10 ), 20 employees straight the defendants are charged with fraudulently seeking over $ 1.1.! Almost $ 80,000 in cash at his home and $ 9,400 in his pocket authorities! Youve safely connected to the SBA, the EIDL loan application date has been extended through 2021 Small success. Cox Media Group Television including the schemes mastermind, darrell Thomas, have guilty... The money to buy a $ 1 million home and pay for $ 30,000 in home improvements have employees., Georgia, Nikia Wakefield, 42, of Rockville, Maryland, and criminals. payments on personal.! Irs filings one of the easiest things for the government to check the name of his....

Brevard County Arrests Today, What Happened 5782 Years Ago, High Profile Nanny Jobs Near Me, Articles P