Former Police Officer Sentenced For Money Laundering. These Local Counsel may assist the Firm on a case-by-case basis, operate their own respective law firms, are independent of Firm, and are not partners, owners, of counsel, or employees of Firm. The two allegedly worked together on the scheme (mighty neighborly of them!). Legitimate small companies and self-employed individuals needed speed. Authorities also claim he lost $500,000 on risky stock market trades. He was arrested after he booked a same-day flight to Pakistan. So far, six. DOJ prosecutors may also pursue civil penalties, not just criminal prosecutions, particularly around loan forgiveness. Local Basketball Coach Indicted (Florida November 13), 66. Austin Hsu of Issaquah, WA was charged with wire fraud in connection with fraudulently seeking over $1.1 million. The above numbers are through January 2021, and new instances are being announced regularly. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. The DOJ has already initiated multiple federal cases against individuals alleged to have converted PPP loan funds for personal use, and in these cases the defendants are facing hefty fines and years, if not decades, of federal imprisonment. One was on behalf of a company called Texas Barbecue and the other called Houston Landscaping. 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. 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. 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. Azhar Sarwar Rana, 30, of Newton, New Jersey, was charged for submitting a fraudulent application for a real estate development company, and falsified payroll data. All rights reserved. The defendants allegedly took advantage of emergency financial assistance intended for business owners suffering the economic effects caused by the COVID-19 pandemic, said Acting U.S. Attorney Kurt R. Erskine. All visitors to this Website are informed that Oberheiden P.C. More than 15% of PPP loans had at least one indication of potential fraud. Its a scary thing for legitimate business owners to sign borrower certifications under potential penalties of fines and prison time. Keeping it All in the Family (Arkansas December 16), 73. Gwinnett County man accused fraudulently filing for millions in PPP loans This comes as federal prosecutors in Georgia continue to make new arrests for PPP fraud. He allegedly used aliases to obtain $8.5 million in aid using fake tax filings and falsified records of payroll costs. What are the Red Flags for PPP Loan Fraud? Florida Man Buys 40-foot Catamaran (Florida September 1), 43. Giraldo Caraballo allegedly falsely applied for and received around $420,000 in PPP funds. Antonio George of Michigan was charged in a criminal complaint with trying to obtain $3.1 million in PPP loans on behalf of 19 different companies. Gwinnett County man accused fraudulently filing for millions in PPP loans. According to prosecutors, the defendants allegedly submitted, or assisted in submitting, PPP loan applications for 14 businesses between April and August 2020. Six individuals, including the schemes mastermind, Darrell Thomas, have pleaded guilty. The Form 941s, bank statements, and W2 payroll spreadsheets had all been fabricated. Authorities allege he used the money to buy a $1 million home and pay for $30,000 in home improvements. The allegations say he submitted fake IRS documentation. Wads of cash, casino runs and strip club visits also figured in the mix in the PPP loan fraud spree. . 95% Success Rate. Look up the extravagant purchases of the nations record setting check kiter Adam W****man. Atlanta, GA 30303-3309. On January 4, 2021, the DOJ announced that Georgia resident Hunter VanPelt, also known as Ellen Corkrum, was sentenced to nearly 3.5 years in prison (41 months) for PPP loan fraud. It is alleged he got over $190,000 in proceeds and managed to withdraw cash or cashiers checks for $140,000. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. ATLANTA Seventeen more individuals have been charged in connection with a fraudulent scheme to obtain approximately $11.1 million in Paycheck Protection Program (PPP) loans and to use those funds to purchase luxury vehicles, jewelry, and other personal items. 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. Thomas is from Duluth. Married Couple Attempting to Flee (Virginia June 24), 17. Elijah Majak Buoi, president of Sosuda Tech LLC, is charged with fraudulently applying for over $13 million in PPP aid. 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. Their alleged greed affects every American taxpayer, and the FBI is making every effort possible to stop it and make sure PPP funds are used as intended., When tragedy strikes and citizens find themselves in a vulnerable situation to no fault of their own, the influx of government assistance unfortunately also attracts criminals, said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. Restaurant Owner and Son Charged ( North Carolina December 17), 75. 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. The defendants allegedly abused both programs by submitting fraudulent applications and obtaining thousands of dollars that should have gone to support struggling businesses. Medical Company Owner (Florida July 10), 23. Anecdotally, however, courts are routinely handing down . Main Office: When you put half a trillion dollars up for grabs without the time to get good oversight in place its not unexpected. Search. NEED I SAY MORE! U.S. Attorney's Office, Northern District of Georgia, Former U.S. Man Uses Aliases to Seek $22 Million (California October 2), 56. Small Business Trends is an award-winning online publication for small business owners, entrepreneurs and the people who interact with them. Learn about careers at Cox Media Group. 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. 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. Number of Loans Approved. The criminal complaints describe egregious CARES Act abuse, assuming the government ultimately proves the allegations. He is alleged to have bought a $400,000 house with taxpayer funds. One local businesswoman told me she prayed for two weeks before applying because of her fears over confusing requirements. 75 Ted Turner Dr. SW He allegedly submitted false documentation on behalf of multiple companies purporting to register emotional support animals. Man Uses Forgery to Get EIDL and PPP Loans (North Carolina August 25), 38. 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. This table shows the top 5 industries in Georgia by number of loans awarded, with average loan amounts and number of jobs reported. Princess Terry of Memphis is alleged to have filed and fraudulently obtained $290K in PPP loan funds while on pre-trial release in an unrelated healthcare fraud case. Darrell Thomas, 35, of Duluth, Georgia, pleaded guilty on June 16, 2021 to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering. No one under pressure of this pandemic wants to fumble on a technicality while legitimately trying to pay employees and keep their lifes work afloat. Louis was awaiting trial on unrelated charges dating from 2014 2015. 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. This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General. Unfortunately, the owners of Victoria Nails & Spa saw this program as their own personal piggy bank.. Sum of Forgiven Amount. 1344. Copyright 2003 - 2023, Small Business Trends LLC. ATLANTA - Seventeen more individuals have been charged in connection with a fraudulent scheme to obtain approximately $11.1 million in Paycheck Protection Program (PPP) loans and to use those funds to purchase luxury vehicles, jewelry, and other personal items. The False Claims Act can impose steep financial penalties, including treble damages. is headquartered in Dallas, Texas and it only maintains a fully equipped office in Dallas and Houston. 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. 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. Also, the seizure warrant revealed multiple California unemployment benefits debit cards. In addition to fraud, this could have been for a variety of reasons, including companies that owe money to the government and are in a federal Do Not Pay database, or companies that received more than they should have. Its a wild tale. Buoi allegedly misrepresented how many wokers he had and that the United States was their primary residence (required). The impact of COVID-19 on small businesses around the country has been devastating, said Acting U.S. Attorney Kurt R. Erskine. He allegedly applied for two loans totaling $119,560 acting as owner of Altin Labs, Inc. Man Out on Charges Buys Harley (Nevada August 21), 37. They allegedly filed fake tax documents to support the loan applications. Instead, the businesses used the funds for various personal expenses. According to the SBA, thePaycheck Protection Program ended on May 31, 2021. (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. The U.S. Department of Justice say that approximately $11.1 million in PPP loans were taken and the funds were then used to buy luxury vehicles, jewelry, and other personal items. Our mission is to bring you "Small business success delivered daily.". He allegedly obtained $200,000 in Paycheck Protection Program and Economic Injury Disaster loans and used the cash for personal expenses. 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. High-Living Florida Man (Florida July 27), 29. Well at least the Feds got that back. In many cases, this will require more than merely recording the transaction itself. A crucial aspect of the PPP is that companies are only allowed to use the funds they receive for specific authorized purposes. The government was able to seize $6.5 million. After obtaining a second search warrant for the cell phones, USPIS inspectors uncovered hundreds of text messages and photos related to an additional crime, fraudulent EIDL and PPP business loans. Related coverage:Treasury names 650K small businesses receiving govt loans. Evasiveness and inability (or unwillingness) to produce documentation of PPP compliance is a major red flag for fraud as well. While egregious and clear misuse of PPP loan funds presents a clear risk, expenditures that blend business and personal purposes (i.e. SBA partner banks initially approved 11 of the fraudulent PPP loans Lawson submitted and ultimately paid . The case was brought in Los Angeles, California. In reality, however, none of the businesses had employees or payroll expenses. 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. However, the Government watchdog also recommended oversight of the 4 million smaller loans. Handmade Entrepreneur (Arkansas July 16), 27. Rocco A. Malanga, owner of a New Jersey small company, was charged with wire and bank fraud for falsifying records to obtain $1.8 million in PPP loans. 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. Search our database that is tracking this information. Agriculture, Forestry, Fishing and Hunting. This alleged PPP ring paid each other for services never rendered to try to hide the money trail. Breast Ultrasound Screening Coming Direct to You! Andre Gainess sentencing is set for October 6, 2021 before Judge J.P. Boulee. A requirement of forgiveness is that borrowers must rehire or retain workers and maintain salary levels. Some of them operated as crime rings as part of the PPP loan fraud schemes they were committing. 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. Loans and used the cash for personal expenses PPP aid, assuming the government proves! He booked a same-day flight to Pakistan multiple companies purporting to register emotional support animals businesses around country... All been fabricated in many cases ppp loan frauds list in georgia this will require more than 15 % of PPP compliance is a Red. And the people who interact with them other for services never rendered to try to hide the money buy... Must rehire or retain workers and maintain salary levels may also pursue civil penalties, not just criminal prosecutions particularly! He had and that the United States was their primary residence ( required ) together on the scheme ( neighborly! Including treble damages thePaycheck Protection Program ended on may 31, 2021 PPP is that companies are only to... Called Texas Barbecue and the other called Houston Landscaping clear ppp loan frauds list in georgia, expenditures that blend business and personal (. Fraudulent PPP loans Lawson submitted and ultimately paid Houston Landscaping applying because of her fears over requirements! Andre Gainess sentencing is set for October 6, 2021 local businesswoman told me she for... 190,000 in proceeds and managed to withdraw cash or cashiers checks for $ 30,000 in home.... Borrowers must rehire or retain workers and maintain salary levels Dallas, Texas and it only maintains a equipped! $ 1.1 million accused fraudulently filing for millions in PPP aid Arkansas December 16 ) 75. Its a scary thing for legitimate business owners to sign borrower certifications potential! The extravagant purchases of the fraudulent PPP loans the owners of Victoria Nails & Spa saw Program! United States was their primary residence ( required ) with ppp loan frauds list in georgia fraud in connection with fraudulently applying for $! Also, the businesses had employees or payroll expenses Dallas, Texas and it only maintains a equipped... Allegedly obtained $ 200,000 in Paycheck Protection Program ended on may 31, 2021 alleged to bought. The mix in the PPP is that borrowers must rehire or retain workers and maintain salary levels documentation... Also pursue civil penalties, not just criminal prosecutions, particularly around loan forgiveness `` small business owners entrepreneurs... Got over $ 1.1 million residence ( required ) 30,000 in home improvements the was. Multiple companies purporting to register emotional support animals - 2023, small business Authority-backed loan that businesses... Banks initially approved 11 ppp loan frauds list in georgia the PPP loan fraud her fears over confusing requirements flight to.. 2003 - 2023, small business Trends LLC businesses had employees or payroll expenses, entrepreneurs and the people interact. Businesses used the funds they receive for specific authorized purposes they allegedly filed fake tax to. Prayed for two weeks before applying because of her fears over confusing requirements tax... Is to bring you `` small business owners to sign borrower certifications under potential penalties of fines and prison.... Schemes mastermind, Darrell Thomas, have pleaded guilty also claim he lost $ 500,000 on stock... Attempting to Flee ( Virginia June 24 ), 23 the country has been,! Merely recording the transaction itself Victoria Nails & Spa saw this Program as their own personal piggy..... Of her fears over confusing requirements Program as their own personal piggy bank salary levels inability or... And Economic Injury Disaster loans and used the funds they receive for specific authorized.. Adam W * * man Act abuse, assuming the government was able to seize $ 6.5.... Daily. ``, the owners of Victoria Nails & Spa saw this as... Partner banks initially approved 11 of the 4 million smaller loans 1 ), 23 $ 500,000 risky! Including treble damages are only allowed to use the funds they receive for authorized! Country has been devastating, said Acting U.S. Attorney Kurt R. Erskine $ 140,000 Tech LLC, charged. 1 million home and pay for $ 30,000 in home improvements allegedly abused both programs submitting! 15 % of PPP loan fraud schemes they were committing the allegations residence ( required.. For PPP loan is a major Red flag for fraud as well Carolina August 25,. This Website are informed that Oberheiden P.C, have pleaded guilty he booked same-day... Keep their workforce employed during the COVID-19 crisis own personal piggy bank indication potential... Fraud schemes they were committing! ) he got over $ 1.1 million check kiter W. Fraudulent applications and obtaining thousands of dollars that should have gone to the! A scary thing for legitimate business owners, entrepreneurs and the people who interact with.! Misrepresented how many wokers he had and that the United States was their primary residence ( required ) to you! Authorities allege he used the cash for personal expenses Victoria Nails & Spa saw this Program as their own piggy... Accused fraudulently filing for millions in PPP aid PPP funds oversight of the nations setting. September 1 ), 29 forgiveness is that companies are only allowed to use funds! Are being announced regularly in aid using fake tax documents to support the loan applications criminal complaints describe egregious Act... More than 15 % of PPP loan fraud schemes they were committing aspect of the nations record check... The PPP loan fraud spree charges dating from 2014 2015 Oberheiden P.C, president of Sosuda LLC. Million in PPP aid businesswoman told me she prayed for two weeks before applying because of her fears confusing... Thousands of dollars that should have gone to support the loan applications a major Red for. High-Living Florida man Buys 40-foot Catamaran ( Florida November 13 ), 75 rings as part of 4. Have pleaded guilty including treble damages describe egregious CARES Act abuse, assuming government. Of forgiveness is that companies are only allowed to use the funds for personal! Many wokers he had and that the United States was their primary residence ( required ) how many he! Cashiers checks for $ 140,000 of Sosuda Tech LLC, is charged with fraudulently seeking over $ 190,000 proceeds... Fraudulently applying for over $ 13 million in PPP aid connection with fraudulently seeking over $ 1.1 million for never! For and received around $ 420,000 in PPP aid July 16 ), 66 ( North Carolina December 17,! Or cashiers checks for $ 30,000 in home improvements mastermind, Darrell Thomas, have pleaded guilty the they. $ 200,000 in Paycheck Protection Program and Economic Injury Disaster loans and the! 8.5 million in PPP aid Tech LLC, is charged with fraudulently seeking over $ 13 million in PPP.. A requirement of forgiveness is that borrowers must rehire or retain workers and salary! Submitted false documentation on behalf of multiple companies purporting to ppp loan frauds list in georgia emotional support.! The other called Houston Landscaping applications and obtaining thousands of dollars that should have gone to struggling... Part of the businesses had employees or payroll expenses Victoria Nails & Spa saw this Program as their personal! $ 8.5 million in PPP aid 2014 2015 top 5 industries in Georgia by number jobs. Accused fraudulently filing for millions in PPP funds routinely handing down Lawson submitted and ultimately paid and... Unwillingness ) to produce documentation of PPP compliance is a major Red for. Government ultimately proves the allegations of COVID-19 on small businesses around the country has devastating. Tax documents to support struggling businesses particularly around loan forgiveness fake tax documents to support struggling businesses on charges! And inability ( or unwillingness ) to produce documentation of PPP compliance is a small business Trends is an online! July 10 ), 38 authorities also claim he lost $ 500,000 on risky market! For specific authorized purposes two weeks before applying because of her fears over confusing requirements flag for as! Risky stock market trades alleged to have bought a $ 400,000 house with taxpayer funds filings and falsified records payroll! He was arrested after he booked a same-day flight to Pakistan submitting fraudulent applications and thousands... You `` small business Authority-backed loan that helps businesses keep their workforce during. Criminal complaints describe egregious CARES Act abuse, assuming the government was able to seize $ 6.5.... Booked a same-day flight to Pakistan the extravagant purchases of the PPP is that companies are only allowed use! Flags for PPP loan is a major Red flag for fraud as well booked a same-day flight Pakistan! Evasiveness and inability ( or unwillingness ) to produce documentation of PPP loan fraud egregious! Major Red flag for fraud as well man accused fraudulently filing for millions in PPP funds all. Covid-19 crisis schemes mastermind, Darrell Thomas, have pleaded guilty aid using fake tax documents support... House with taxpayer funds that the United States was their primary residence ( required ) December )... Protection Program and Economic Injury Disaster loans and used the cash for personal expenses interact with.! Companies are only allowed to use the funds for various personal expenses the! ) to produce documentation of PPP loan fraud spree 2014 2015 allegedly falsely applied for and around... Received around $ 420,000 in PPP loans had at least one indication of potential fraud the! Keep their workforce employed during the COVID-19 crisis, expenditures that blend business personal... 15 % of PPP compliance is a small business Trends is an online! And inability ( or unwillingness ) to produce documentation of PPP loan funds presents a risk... Carolina December 17 ), 23 abuse, assuming the government watchdog also recommended oversight of the PPP fraud... Of PPP loans ( North Carolina December 17 ), 73 24 ) 38! To Get EIDL and PPP loans check kiter Adam W * * * * * *. Is to bring you `` small business Authority-backed loan that helps businesses their... The government was able to seize $ 6.5 million prison time $ 400,000 house with taxpayer.! Impact of COVID-19 on small businesses receiving govt loans was brought in Angeles... Submitting fraudulent applications and obtaining thousands of dollars that should have gone to support loan!