However, the Government watchdog also recommended oversight of the 4 million smaller loans. Recording Artist Buys Ferrari with PPP Money (Florida October 6), 57. The Feds froze his bank account and recovered $402,000. With that kind of speed, no program could be perfect. Postal Inspection Services and the Drug Enforcement Administration of methamphetamine hidden in dog food and shipped to one of the defendants led to the discovery of details of people in Houston, the Washington, D.C.-Metro area, and Metro Atlanta involved in a scheme to defraud the government of money through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Now they are getting another PPP Loan to go on more trips and buy more things for themselves.They posted on their Facebook all their trips and everything they bought.They went from renting a house to buying a house in cash.They dont even have EmployeesWow this is wrong. 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. He allegedly laundered funds he received by writing checks for $8,330 each to 23 people. Are you personally at risk as a company owner, board member, executive? The OMelveny law firm noted: if history is a guide, DOJ will use its leverage over institutions that processed the loans to do the governments initial work of identifying potential irregularities in loan applications. The complaint alleges George provided false and misleading documents and apparently couldnt keep his fake employees straight. If so, how do I go about it? 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. 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. Claimed to Have Paid 100 Employees (Florida September 17), 52. It is not intended as legal advice. Firm's engagement letter and Firm's website disclaimers provide additional details. He also allegedly submitted forged tax documents. When Williams received the funds, he allegedly tried to launder the money by transferring it to different accounts. He was approved for $3.9 million. Chain Pizza Owner Charged With PPP Fraud (Michigan November 12), 65. Martin Kao, the CEO of Navatek LLC (now known as Martin Defense Group LLC), was charged in a federal complaint with fraudulently obtaining $12.8 million in CARES Act loans. Jesika Blakely, 34, of Atlanta, Georgia, is 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 her involvement in several businesses loans. Attorneys for the Northern District of Georgia, 10 defendants indicted in multi-state, fraudulent COVID-19 related business loan scheme, Arizona man pleads guilty to extorting Georgia Tech, Georgia woman charged with stealing over $450,000 in government and retirement benefits. 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. They do not appear to be honest mistakes. So far, six people, including the schemes mastermind, Darrell Thomas, have pleaded guilty. Postal Inspectors are committed to aggressively pursuing investigations in which the U.S. Mails are used to facilitate criminal schemes.. A former Georgia mayoral candidate in charge of a nonprofit claiming to assist low-income families spent $323,000 in loans she received from the Paycheck Protection Program (PPP) on an in-ground . 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. 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. 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. However, the alternative of waiting would not have served the country well. Auto Repair Shop Owner (California June 5), 11. 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. (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds. Rafael Maturino and Winston James were charged separately but allegedly worked together to carry out their scheme. Charges were recently brought against several celebrities, entertainers and business leaders in Georgia for allegedly defrauding the Paycheck Protection Program for a total of more than $3. The criminal complaint goes on to say Caraballo also received $55,000 in Economic Injury Disaster Loan (EIDL) relief. Paycheck Protection Program (PPP) loans have aided more than 5.2 million small business owners, providing a much-needed lifeline during the Coronavirus outbreak crisis. Chanchikyan has pleaded not guilty, and his trial is scheduled for October 4, 2022. After two banks declined, Rowberry allegedly said she would help him re-apply through a friend. Share sensitive information only on official, secure websites. Government money always attracts a small number of fraudsters, grifters, and criminals. (Shutterstock) ATLANTA Federal fraud charges were filed against. Richard B. Russell Federal Building They allegedly filed fake tax documents to support the loan applications. The defendants are accused of submitting at least 14 fraudulent loan applications around April-August 2020 in attempts to get more than $14.7 million, the DOJ said. Argires allegedly filed two fraudulent PPP applications seeking $1.1 million in forgivable funding. McQuarn allegedly used the cash for personal use including buying a 26-foot Pavati Wake Boat and a Rolls Royce. 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. Number of Loans Approved. 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. Ex-Felon Charged With PPP Loan Fraud (Rhode Island September 22), 53. Search our database that is tracking this information. Darrell Thomass sentencing is set for September 15, 2021 before Judge J.P. Boulee. This means you have to be just as scrupulous when applying for forgiveness as when you applied for the loan initially. 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. Under 18 U.S.C. Owner of Private Investigation Firm (Ohio June 24), 18. A Cessna Aircraft and a Lexus (Virginia October 20), 59. He will just out of prison. 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. As part of his guilty plea, Darrell Thomas admitted his participation in fraudulent conduct totaling more than $14.7 million, including more than $11.1 million in fraudulent PPP loans, more than $1.15 million in fraudulent Economic Injury Disaster Loans, and more than $2.4 million in fraudulent automobile loans. U.S. Attorney Brian T. Moran said in a statement, I am pleased that the systems designed to detect and deny fraudulent payments caught his scheme before federal funds went out the door.. Richard Ayvazyan, Marietta Terabelian, Artur Ayvazyan, Tamara Dadyan were charged in a complaint claiming they conspired together as part of a disaster relief loan fraud ring based in Los Angeles. Sum of Initial Approval Amount. Rob, have you reported that to the DOJ PPP fraud hotline? To request removal of your name from an arrest report, submit these required items to arrestreports@patch.com. Gaines is set to be sentenced on October 6. Have a question about Government Services? If the PPP debt is not forgiven, the interest rate is very low 1%. It is alleged he got over $190,000 in proceeds and managed to withdraw cash or cashiers checks for $140,000. Lyft Software Engineer (Washington May 22), 9. Joseph Cherry II of Virginia was indicted on 10 counts of COVID fraud and faces 10 to 30 years of prison time on each count. Elijah Majak Buoi, president of Sosuda Tech LLC, is charged with fraudulently applying for over $13 million in PPP aid. The estimated amount was about. 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. Reality TV Personality (Georgia May 13), 4. Co-Leader of COVID-19 Loan Fraud Ring Extradited from Montenegro to Begin Serving Prison Sentence . Lock 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. John Gaines a/k/a Marty Gaines, 56, of Marietta, Georgia, is 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 Gaines Reservation and Travel. Man Sends Money to Pakistan and Books Flight (New Jersey December 15), 72. Bank Fraud (18 U.S.C. He was arrested after he booked a same-day flight to Pakistan. Shashank Rai, an engineer from Beaumont, is charged with multiple counts of fraud and false statements to the SBA for seeking more than $10 million in PPP loans. Former Senior Trial Attorney U.S. Department of Justice, Former U.S. Attorney & Former District Attorney. Honestly, I think theyll be finding and prosecuting these for years. Find an attorney to defend youhttps://lawyers.findlaw.com/lawyer/practice/white-collar-crimes Attorneys Tal Chaiken and Nathan Kitchens of the Northern District of Georgia and Trial Attorney Siji Moore of the Criminal Divisions Fraud Section are prosecuting the case. Most of the funds are going to help the nations 31 million small businesses. Several individuals he submitted payroll documentation for said they never worked for his company, investigators allege. Under the terms of the PPP, utilizing loan funds for personal expenses is expressly prohibited. Cherry was on supervised release in an unrelated federal case when he applied to the Small Business Administration program. What are the Red Flags for PPP Loan Fraud? Austin Hsu of Issaquah, WA was charged with wire fraud in connection with fraudulently seeking over $1.1 million. 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. SBA partner banks initially approved 11 of the fraudulent PPP loans Lawson submitted and ultimately paid . 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. 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. Attorneys for the Northern District of Georgia, Twenty-two defendants charged in connection with alleged $11.1 million Paycheck Protection Program fraud scheme, https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form, Arizona man pleads guilty to extorting Georgia Tech, Georgia woman charged with stealing over $450,000 in government and retirement benefits. According to the U.S. 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. 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.. If you got funding after June 5, you have five years to repay. Man Gives 23 People Pandemic Pay, Buys House (Nevada August 26), 39. He also allegedly squandered cash at luxury retailers and Miami resorts. 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. NEED I SAY MORE! 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. 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. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. Just when you think you cant be any more surprised by PPP fraud . 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. The EIDL application information, submitted by the applicant, was used by SBA systems to calculate the amount of money the business was eligible to receive in the form of a loan. 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. Depending on the charges, penalties could include up to $1 million in fines and up to 30 years in prison, legal experts say. Share sensitive information only on official, secure websites. Justice Department representatives say honest owners acting in good faith shouldnt worry. NOTICE: Prior results do not guarantee similar outcomes; attorney advertising. 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