This has caused some entrepreneurs, employers and owners to think twice about applying. Here are 10 red flags for PPP loan fraud: Companies are required to make a number of affirmative representations during the PPP loan application process. 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. All visitors to this Website are informed that Oberheiden P.C. 2023 www.onlineathens.com. 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. * * * 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. 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. East Texas Man and the Online Name Generator (Texas May 19), 5. 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. The False Claims Act can impose steep financial penalties, including treble damages. 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. Nationwide Federal Defense, Compliance and Litigation. He then allegedly transferred the illicit gains to his personal bank accounts. Have a question about Government Services? After receiving the loans, he bought a $480,000 , spent $50,000 to $200,000 on a lost gambling bet, bought a brand new speedboat worth about $150,000, he also bought Martina D****la a $900 pair of shoes for her 23rd birthday. In July, the Feds seized $866,019 from his bank accounts. He allegedly was caught on camera withdrawing cash. Allegedly Hsu applied in the names of current and former employees, and incorporated a fake company also. Most of the funds are going to help the nations 31 million small businesses. I appreciate your consideration/guidance/help/time. 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. Members of the public are reminded that the indictment only contains charges. All information on this website has been prepared for informational purposes only and does not constitute legal advice. Atlanta, GA 30303-3309. Amir Aqeel, Siddiq Azeemuddin, Rifat Bajwa, Pardeep Basra, Mayer Misak, Maurico Navia, and Richard Reuth allegedly participated together in filing more than 80 fraudulent Paycheck Protection Program applications for $16 million. Both are fraud. Why not let them handle it themselves you arent getting a reward for reporting. The banks internal auditors will then report it to the SBA faster than you can say oops, bad move.. Three-State Ring (Georgia, Ohio and California August 6), 32. 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 . Reality TV Personality (Georgia May 13), 4. 75 Ted Turner Dr. SW Whoa! Or do you want to know whichcompanies got taxpayer-fundedloans? The complaint also states he was convicted of four counts of bank robbery and fraud previously. (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds. To request removal of your name from an arrest report, submit these required items to arrestreports@patch.com. Acting U.S. Attorney Audrey Strauss said, Goyal allegedly looted over $630,000 in federal funds earmarked for legitimate small businesses in dire financial straits.. A pair of Georgia businesses are in hot water over fraud allegations related to their PPP loans. 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. Celebrities, entertainers and business leaders are among 19 people recently indicted in Georgia on charges that they defrauded the Paycheck Protection Program for a total of more than $3 million. Official websites use .gov Charmaine Redding, pleaded guilty on July 14, 2021 to one count of conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc. Reddings sentencing is set for October 21, 2021 before Judge J.P. Boulee. 2023 Oberheiden P.C. They have fewer than 500 employees, qualify as a small business concern under Section 3 of the Small Business Act, or meet one of the limited number of other PPP eligibility standards; and, Their owners are eligible to participate in SBA programs such as the PPP (i.e. The Form 941s, bank statements, and W2 payroll spreadsheets had all been fabricated. Then turns around and starts writing checks to Lamborghini dealerships. High-Living Florida Man (Florida July 27), 29. Andrew Marnell of Los Angeles is charged with bank fraud. I want to thank the U.S. Attorneys Office and our law enforcement partners for their dedication and commitment to seeing justice served.. He has contested the charges. The government issued a seizure warrant for a Mercedes Benz SUV and more than $500,000 from a bank account. He also allegedly was involved in a scheme claiming to represent the New York State Government in procuring COVID-19 test kits. 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. $1,659,747. They are accused of using the cash for personal purchases including a Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover. The total approved was over $525 billion, demonstrating its success. One defendant was so brazen he allegedly posted a rap video online flashing $100 bills. Terry was sentenced to 65 months in federal prison for other cases. More than 15% of PPP loans had at least one indication of potential fraud. Claimed to Have Paid 100 Employees (Florida September 17), 52. According to the SBA, the Paycheck Protection Program ended on May 31, 2021. 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. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. Three people she allegedly claimed as staff told investigators they never heard of her company. Argires allegedly filed two fraudulent PPP applications seeking $1.1 million in forgivable funding. NEWNAN, Ga. - Ten defendants, who operated as part of a larger group, have been indicted for participating in a wide ranging, multi-state scheme to submit fraudulent loan applications on behalf of non-existent businesses as part of the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). 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. He allegedly created fake technology companies to obtain $1.5 million in funds. 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. Terrence Deshun Williams, named one of Floridas high school basketball coaches of the year, was charged with fraudulently obtaining $984,710 in PPP loan money for a consulting company. Report fraud/thefthttps://www.sba.gov/funding-programs/loans/covid-19-relief-options/report-id-theft-fraud 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. He ultimately received over $2 million but the government seized $1.98 million from business bank accounts. 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. 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. Owners of Chain of Nail Salons (New York December 10), 71. Encompassing multiple states, authorities said the individuals took advantage of the Paycheck Protection Program and the Economic Injury Disaster Laon, using made-up businesses to file fraudulent loan applications for upwards of $10,000 for that did not have to be repaid under some circumstances. Acting U.S. Attorney Kurt Erskine issued an update on his office's efforts to combat fraud related to schemes targeting the Paycheck Protection Program (PPP), a loan program created by Congress to help small businesses pay payroll, interest on mortgages, rent, and utilities during the COVID-19 pandemic. Someone we know got 4 PPP loans, all under diff businesses, but almost certain he submitted all the same ppwk for each business. Goldstein allegedly transferred $355,000 in his personal bank account. Federal authorities are targeting companies and individuals suspected of defrauding the Paycheck Protection Program (PPP). Medical Company Owner (Florida July 10), 23. "Along with our federal, state and local law enforcement [] Defunct Chicago Restaurateur (Illinois August 28), 42. The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. Related:Why the Small Business Administration loan program frustrates borrowers, Previous PPP stories:More than 5,000 PPP loans, totaling more than $200m, approved in Clarke County, Database: Click here to search our PPP loan database. Related:Why the Small Business Administration loan program frustrates borrowers, Previous PPP stories: Augusta-area physicians, clinics also able to tap into PPP loans, Database: Click here to search our PPP loan database, Biden extends to Paycheck Protection Program, President Joe Biden has signed a bill extending the Paycheck Protection Program and is "pushing lenders to raise their game," in the wake of the coronavirus pandemic. Georgia and South Carolina Fraud Ring with 11 People (Georgia, January 28, 2021). Bank Fraud (18 U.S.C. 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. Ophthalmologist Already Under Indictment (New York June 24), 19. A Cessna Aircraft and a Lexus (Virginia October 20), 59. 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. He allegedly used some of the cash to pay off $80,000 in personal credit cards and a $40,000 car loan. Where: The Bank of America PPP loans class action was filed in a California federal court. Miami Wannabe Farmers (Florida August 26), 40. ) or https:// means youve safely connected to the .gov website. The criminal complaint goes on to say Caraballo also received $55,000 in Economic Injury Disaster Loan (EIDL) relief. Fake Sewing Company Owner Fled Country (Los Angeles August 11), 36. 4 Of The Best Ice Cream Spots In The Atlanta Area Vegan, Too! Andre Lee Gaines, 67, of Dallas, Georgia, 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. 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. Cherry was on supervised release in an unrelated federal case when he applied to the Small Business Administration program. 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. According to the U.S. 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. Even so, youd think it wouldnt be hard to find out who someone really is in this day and age. Unfortunately, the owners of Victoria Nails & Spa saw this program as their own personal piggy bank.. Former Catholic Archdiocese Employee (Washington, D.C. August 11), 35. The defendants are presumed innocent of the charges, and it will be the governments burden to prove the defendants guilt beyond a reasonable doubt at trial. Man Sends Money to Pakistan and Books Flight (New Jersey December 15), 72. In order to get Paycheck Protection loans forgiven and not have to repay the loan, owners have to show proof that at least 60% was used for payroll and the rest for other permitted expenses. Charles Petty a/k/a Charles Knight, 48, of Atlanta - 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 Transportation Management Services Inc. Jerry Baptiste, 43, of College Park - 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 Transportation Management Services Inc. Charles Hill IV, 45, of Norcross - charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, Infinite Education Services Inc. Teldrin Foster, 39, of Decatur - charged with conspiracy to commit wire fraud in connection with the loan obtained by Bellator Phront Group Inc. Denesseria Slaton, 52, of Stockbridge - charged with conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc. Carla Jackson, 53, of Tucker - previously charged by indictment on August 4, 2020 with money laundering in connection with laundering the proceeds of Gaines Reservation and Travels PPP loan. Former Senior Trial Attorney U.S. Department of Justice, Former U.S. Attorney & Former District Attorney. Rahul Shah of Evanston is charged with bank fraud and making false statements to a financial institution. Here's a list of the PPP loan prosecutions to date: 1. Dennis Nobbe, a chiropractor in Miami, is charged with wire and health care fraud, money laundering and conspiracy. (Shutterstock) ATLANTA Federal fraud charges were filed against. They allegedly filed fake tax documents to support the loan applications. Seattle Doctor (Washington June 30), 20. 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. The retail giant suspended him and stated the charges were unrelated to Walmart. 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. 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. Based on the investigation, none of the companies allegedly engaged in any business-related transactions or used the PPP loan proceeds for any authorized purposes. Government money always attracts a small number of fraudsters, grifters, and criminals. Gwinnett County man accused fraudulently filing for millions in PPP loans. Thomas sentencing is set for September 15. Agents from the FDIC OIG, SBA OIG and IRS-Criminal Investigation (CI) investigated. On average, companies that received a loan got $101,000 according to SBA data. Austin Hsu of Issaquah, WA was charged with wire fraud in connection with fraudulently seeking over $1.1 million. 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ppp loan frauds list in georgia