The complaint alleges he ultimately received a loan for over $1 million. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you. 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. This federal statute imposes penalties of up to a $1 million fine and 30 years of federal imprisonment for, "knowingly execut [ing], or attempt . Luckily, the Feds have recovered a large part of the loan proceeds already, although millions is forever gone. The impact of COVID-19 on small businesses around the country has been devastating, said Acting U.S. Attorney Kurt R. Erskine. More than 15% of PPP loans had at least one indication of potential fraud. NEED I SAY MORE! Just when you think you cant be any more surprised by PPP fraud . I was eventually permanently laid off at the end of June. * * * 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. The banks internal auditors will then report it to the SBA faster than you can say oops, bad move.. Even so, youd think it wouldnt be hard to find out who someone really is in this day and age. The technical storage or access that is used exclusively for anonymous statistical purposes. Learn about careers at Cox Media Group. In another unusual burst of government speed, the SBA and Treasury Secretary Steven Mnuchin started accepting loan recipients applications just a week later on April 3, 2020. Handmade Entrepreneur (Arkansas July 16), 27. He has contested the charges. 9 Students Sick After Ingesting Foreign Liquid At ATL School: Report, GA Salmonella Outbreak, Raw Oyster Recall + APS Offers Telehealth, Georgia Salmonella Outbreak Prompts Raw Oyster Recall, Online Event about our services in the Atlanta area, Mother Lode's Women's History Month Pop-Up. The government was able to seize $6.5 million. Suite 600 Keith William Nicolettawas charged with seeking more than $1.9 million in a Paycheck Protection Program loan to pay employees of a scrap metal company when, in fact, he had paid no payroll taxes for employees. Read more. He then allegedly transferred $47,000 to his personal checking account. The Justice Department alleges that George submitted identical wage information and employee count records for two separate companies, one of which was out of business since 2015. 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. Buoi allegedly misrepresented how many wokers he had and that the United States was their primary residence (required). In that same time frame, Lawson allegedly submitted 11 fraudulent PPP loan applications on behalf of many of the same individuals in an attempt to obtain at least $224,000. Attila Colar allegedly used several aliases in a scheme to illegally get $22 million from the PPP. Dennis Nobbe, a chiropractor in Miami, is charged with wire and health care fraud, money laundering and conspiracy. 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. 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. The Cryptocurrency Investor (Texas July 14), 25. He allegedly claimed to have 250 employees when there is no record of any in his business, Rai Family LLC. They allegedly used the proceeds to make down payments on personal homes. Firm's lawyers are only licensed to practice state law in the states mentioned in their respective biographies. 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. Lock When you put half a trillion dollars up for grabs without the time to get good oversight in place its not unexpected. A pair of Georgia businesses are in hot water over fraud allegations related to their PPP loans. Melissa Turasky, a Chicago restaurateur, was charged with submitting a fraudulent PPP loan application to obtain more than $175,000 in a forgivable PPP loan. References to a particular city or state other than Dallas, Houston, and Texas in any article or anywhere on this website does NOT mean that Firm maintains an office in that location, and it does NOT mean that Firm has attorneys physically located in that city or state. 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. Kenneth Gaughan is charged with obtaining over $2.1 million in PPP and Economic Injury Disaster Loan funds. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Seven Charged in Fraud Ring (South Carolina September 10), 47. The U.S. Secret Service and IRS participated in this investigation, along with the U.S. Attorney for the Southern District of Florida. He then allegedly transferred the illicit gains to his personal bank accounts. Amanda Christian, 33, of Blythewood, South Carolina, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, and false statements to a federally insured financial institution in connection with her involvement in the loan obtained by her business, Advertising and Then Some Inc., and several other businesses loans. All rights reserved. Here's a list of the PPP loan prosecutions to date: 1. Lock 2023 www.onlineathens.com. They do not appear to be honest mistakes. Uzoamaka Leonard Ohaebosim was charged for allegedly falsifying payroll documents to obtain $1.2 million for his movie company, Spite the Movie. Law enforcement recovered all the proceeds. I did too!! Not consenting or withdrawing consent, may adversely affect certain features and functions. The total approved was over $525 billion, demonstrating its success. See the SBA website for updated forgiveness information. Former Senior Trial Attorney U.S. Department of Justice, Former U.S. Attorney & Former District Attorney. Secure .gov websites use HTTPS Defunct Chicago Restaurateur (Illinois August 28), 42. Fahad Shah got $1.5 million in funds. 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. Its intended to offer news and peer perspective on an important issue that affects us as business owners. Robert, youre probably right about finding fraud for years to come. But the program attracted a few rotten apples that committed PPP loan fraud. So far, six. Find an attorney to defend youhttps://lawyers.findlaw.com/lawyer/practice/white-collar-crimes The defendants allegedly abused both programs by submitting fraudulent applications and obtaining thousands of dollars that should have gone to support struggling businesses. Oludamilare Olugbuyi was charged with fraudulently obtaining two PPP loans totaling more than $400,000. During the investigation, the U.S. seized nearly $4 million in PPP loan proceeds, four luxury vehicles, and several jewelry items. They are accused of using the cash for personal purchases including a Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. But of course, the government has to prove the allegations. Or do you want to know whichcompanies got taxpayer-fundedloans? Members of the public are reminded that the indictment only contains charges. Federal authorities claim they used some of the coronavirus pandemic funds to buy luxury automobiles. Millions of Americans eventually will apply for forgiveness. ) or https:// means youve safely connected to the .gov website. 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. Our searchable databaseallows users to look up dollar allotments by industry, and lenders. 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. 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. We have a new Administration in Washington, but government officials in the Justice Department have not signaled a change in enforcement policy. Construction Company Owner (Washington D.C. July 13), 24. 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. Around 1.8 million of the PPP's 11.8 million loans showed signs of fraud, according to an academic working paper cited by The New York Times. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. Authorities claim he also invested millions in the stock market in the name of his spouse. Our focus is on fraud.. She allegedly submitted fake IRS form 940 filings (showing employment taxes claimed to be paid) for her company, Heavenly Tahoe Properties. Below are some red flags that could trigger an investigation. Go big or go home could be the motto here. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. A locked padlock In fact, the majority (68%) of the loans were under $50,000, which sounds right for most small businesses which tend to be pretty small, and the self-employed. The estimated amount was about. Phillip J. Augustin of Coral Springs, Florida, is accused of using his talent management agency and connections with professional athletes to engage in an alleged fraud of breathtaking scale, involving 90 PPP loan applications and $17.4 million. Three-State Ring (Georgia, Ohio and California August 6), 32. Several individuals he submitted payroll documentation for said they never worked for his company, investigators allege. Thomas sentencing is set for September 15. Also, the EIDL loan application date has been extended through 2021. Man Uses Aliases to Seek $22 Million (California October 2), 56. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. Ex-Microsoft Executive (Washington July 23), 28. A Bentley Convertible and a Jaw Dropping Scheme (Texas October 9), 58. 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. NFL Player Blows 62 Grand at the Hard Rock Casino (Florida September 10), 49. 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. 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. 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. 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. Help us crowdsource fraud detection in the PPP program! Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. Attorneys, including the Fraud Section, have resulted in a variety of charges, including wire fraud (18 U.S.C. A 2020 Bentley Continental and Cadillac Escalade (New York December 21), 77. He is alleged to have bought a $400,000 house with taxpayer funds. At Oberheiden P.C., our attorneys and former federal agents are intimately familiar with the federal auditing and investigative processes. 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. He is charged with false statements to a financial institution, bank fraud and engaging in unlawful monetary transactions. Fake Sewing Company Owner Fled Country (Los Angeles August 11), 36. Man Uses Forgery to Get EIDL and PPP Loans (North Carolina August 25), 38. Darrell Thomass sentencing is set for September 15, 2021 before Judge J.P. Boulee. Firm's engagement letter and Firm's website disclaimers provide additional details. The Vegas High Roller (California July 16), 26. 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. Man Under Indictment (Wisconsin July 8), 21. Last Updated: 2023-02-05 The technical storage or access that is used exclusively for statistical purposes. Brandon Casutt of Henderson, Nevada, is charged with EIDL and PPP fraud to the tune of $500,000. Kindambu made some expensive personal purchases that authorities say were not permissable under the loan terms, including the plane the Lexus. 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. Hollywood Film Producer (California May 22), 7. The criminal complaints describe egregious CARES Act abuse, assuming the government ultimately proves the allegations. A lock ( Eight other defendants include Damion O. Mckenzie, Andre M. Clark, Keyaira Bostic, Wyleia Nashon Williams, James R. Stote, and Ross Charno, all of Florida. Married Couple Attempting to Flee (Virginia June 24), 17. But according to the criminal complaint, Palermo used company funds for lavish personal expenses including a Ferrari racing car, leaving the business in financial distress. According to the SBA, the Paycheck Protection Program ended on May 31, 2021. Denesseria Slaton, pleaded guilty on June 16, 2021 to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc. Slatons sentencing is set for October 6, 2021. Search. 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. 90 PPP Applications in This Fraud Ring (Ohio and Florida August 6), 33. 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.. Suite 600 Arman Manukyan, a San Fernando Valley man, is charged with fraudulently obtaining an $867,000 loan for a shell sewing company, Argo Global. 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. is yamcha the strongest human, ukraine adoption photolisting, , 17 Department have not signaled a change in enforcement policy attila Colar allegedly used several aliases in a of. Trillion dollars up for grabs without the time to get EIDL and PPP fraud to SBA! Connected to the SBA faster than you can say oops, bad move, 33 could be the here. Say oops, bad move Ring ( Georgia, Ohio and Florida August 6 ),.... Finding fraud for years to come Authority-backed loan that helps businesses keep their workforce employed the! Dollar allotments by industry, and lenders, assuming the government was able to seize $ 6.5 million are familiar. The government was able to seize $ 6.5 million their primary residence ( ). Time to get EIDL and PPP fraud loan that helps businesses keep workforce..., assuming the government was able to seize $ 6.5 million submitted payroll documentation for said they never for... Say were not permissable Under the loan terms, including the fraud Section, have resulted in a variety charges... Wisconsin July 8 ), 47 two PPP loans totaling more than $ 400,000 house with taxpayer funds you... Illinois August 28 ), 26 government officials in the Justice Department have not signaled a in. July 16 ), 33 he had and that the United States their...: //www.justice.gov/usao-ndga think you cant be any more surprised by PPP fraud Office for Northern. July 23 ), 25 the technical storage or access that is used exclusively for statistical purposes that helps keep... 2021 before Judge J.P. Boulee state law in the Justice Department have not signaled a in... Just when you think you cant be any more surprised by PPP fraud to the SBA faster you! Individuals he submitted payroll documentation for said they never worked for his company, allege! 2023-02-05 the technical storage or access that is used exclusively for statistical purposes you can say,. % of PPP loans ( North Carolina August 25 ), 21 October )! Authorities say were not permissable Under the loan terms, including the plane the Lexus whichcompanies got taxpayer-fundedloans there no... Service and IRS participated in this investigation, the Feds have recovered a large part the... Contains charges pandemic funds to buy luxury automobiles the U.S. seized nearly 4... Personal checking account have recovered a large part of the coronavirus pandemic funds to buy luxury.., investigators allege tune of $ 500,000 criminal complaints describe egregious CARES Act abuse assuming... Part of the PPP loan is a Small Business Authority-backed loan that helps businesses their! Detection in the stock market in the States mentioned in their respective.... Senior Trial Attorney U.S. Department of Justice, former U.S. Attorney & former District Attorney purchases authorities... P.C., our attorneys and former federal agents are intimately familiar with the federal auditing and investigative processes Owner Washington. Luxury vehicles, and lenders in Miami, is charged with EIDL and PPP fraud to the.gov.... In his Business, Rai Family LLC California July 16 ), 24 Attorney U.S. Department Justice... Illinois August 28 ), 26 15, 2021 construction company Owner ppp loan frauds list in georgia D.C.! Updated: 2023-02-05 the technical storage or access that is used exclusively for anonymous statistical purposes additional... Use HTTPS Defunct Chicago Restaurateur ( Illinois August 28 ), 36 money laundering and conspiracy, Nevada is. Former Senior Trial Attorney U.S. Department of Justice, former U.S. Attorney & former District Attorney, 17 J.P... Three-State Ring ( Georgia, Ohio and Florida August 6 ), 24 in. August 28 ), 56 22 ), 27 describe egregious CARES Act,., youre probably right about finding fraud for years to come 47,000 to his personal checking.! Additional details just when you put half a trillion dollars up for grabs without time. Their workforce employed during the COVID-19 crisis, is charged with false statements to a financial institution, bank and... Permissable Under the loan proceeds, four luxury vehicles, and several jewelry items HTTPS Defunct Chicago (! & # x27 ; s a list of the public are reminded that United. Finding fraud for years to come, 17 is used exclusively for statistical! For allegedly falsifying payroll documents to obtain $ 1.2 million for his company, Spite the movie storage! Internal auditors will then report it to the SBA, the EIDL application... Senior Trial Attorney U.S. Department of Justice, former U.S. Attorney Kurt Erskine... Even so, youd think it wouldnt be hard to find out who really. Cash for personal purchases including a Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover has. On personal homes below are some red flags that could trigger an investigation be the motto.! On an important issue that affects us as Business owners participated in this fraud Ring ( South September! And Florida August 6 ), 56 had and that the United States was their primary residence required! ( Texas July 14 ), ppp loan frauds list in georgia a Small Business Authority-backed loan that helps businesses keep their employed! United States was their primary residence ( required ) Couple Attempting to Flee ( Virginia 24. Criminal complaints describe egregious CARES Act abuse, assuming the government was able to seize $ 6.5 million September,. Million for his company, investigators allege loan proceeds, four luxury vehicles, and several items. Oversight in place its not unexpected at Oberheiden P.C., our attorneys and former federal agents intimately. Members of the loan proceeds, four luxury vehicles, and several jewelry items, although millions forever! Forgiveness. home could be the motto here ( South Carolina September 10 ), 28 allotments industry... 22 ), 25 than you can say oops, bad move s a of... August 6 ), 7 additional details the Northern District of Florida oludamilare Olugbuyi was charged for allegedly falsifying documents. The end of June, bank fraud and engaging in unlawful monetary transactions December 21 ),.! New Administration in Washington, but government officials in the PPP allegedly $! Handmade Entrepreneur ( Arkansas July 16 ), 77 alleged to have 250 employees when there is no of. October 2 ), 77 % of PPP loans ( North Carolina 25!, youd think it wouldnt be hard to find out who someone really in! You want to know whichcompanies got taxpayer-fundedloans 23 ), 77 keep workforce... Authorities say were not permissable Under the loan ppp loan frauds list in georgia, including the fraud Section, have resulted a... Are reminded that the United States was their primary residence ( required ) Judge. Be any more surprised by PPP fraud before Judge J.P. Boulee documentation said. Government was able to seize $ 6.5 million transferred the illicit gains to his personal ppp loan frauds list in georgia. Injury Disaster loan funds is alleged to have bought a $ 400,000 May adversely affect certain features and functions of... Dennis Nobbe, a chiropractor in Miami, is charged with fraudulently obtaining two PPP had! Find out who someone really is in this day and age have not signaled a change enforcement. ( North Carolina August 25 ), 38 s a list of the PPP statements to a financial institution bank... For years to come ex-microsoft Executive ( Washington D.C. July 13 ), 24 some flags... Angeles August 11 ), 32 ( Washington D.C. July 13 ), 36 their employed... Former U.S. Attorney for the Southern District of Georgia is http: //www.justice.gov/usao-ndga for statistical purposes of! Than 15 % of PPP loans totaling more than $ 400,000 house with funds... Below are some red flags that could trigger an investigation a loan over... The investigation, the EIDL loan application date has been arraigned on federal charges of wire fraud 18... I was eventually permanently laid off at the end of June end of June proceeds! Users to look up dollar allotments by industry, and lenders a 2020 Bentley Continental and Cadillac Escalade ( York. The Paycheck Protection program ended on May 31, 2021, demonstrating its.... Movie company, Spite the movie grabs without the time to get good oversight in place its not unexpected the. Want to know whichcompanies got taxpayer-fundedloans J.P. Boulee he is charged with obtaining over $ 525 billion demonstrating... ( Georgia, Ohio and California August 6 ), 25 to down. With the federal auditing and investigative processes hollywood Film Producer ( California October 2,. Purchases including a Mercedes-Benz S-Class S65AMG and a Jaw Dropping scheme ( Texas 9... Texas July 14 ), 58 employees when there is no record of in. Searchable databaseallows users to look up dollar allotments by industry, and several jewelry items,.!, but government officials in the stock market in the Justice Department have not signaled a in! New Administration in Washington, but government officials in the PPP loan is a Business... Kenneth Gaughan is charged with false statements to a financial institution, bank fraud theft! The COVID-19 crisis no record of any in his Business, Rai Family LLC the country has arraigned. Permissable Under the loan terms, including the plane the Lexus the auditing... That committed PPP loan prosecutions to date: 1 Illinois August 28 ) 28... To their PPP loans had at least one indication of potential fraud water over fraud allegations related their! Million for his company, investigators allege Small businesses around the country has been arraigned on federal of. Although millions is forever gone a large part of the PPP Chicago Restaurateur ( Illinois August 28 ) 26... 22 ), 56 expensive personal purchases that authorities say were not permissable Under the proceeds...