The Paycheck Protection Program introduced by the SBA during the shutdown has been considered by many a success however, there have been many issues including fraud, which was bound to happen given the speed at which the program was implemented and amount of money involved.
Media reports of criminal complaints and arrests have picked up pace in the last month or so. Initially there were just a few cases as federal investigators made their way through millions of approved applications. Now they have the evidence on many to bring formal charges.
Listed below are just some of the reported criminal cases brought against people so far for PPP fraud but we will continue updating this article as more are disclosed.
Ex-New York Jets wide receiver Josh Bellamy was arrested Thursday for his alleged role in a $24 million Covid-19 relief scheme, the U.S. Justice Department announced Thursday.
The complaint says that Bellamy, along with 10 other defendants, allegedly applied for Paycheck Protection Program (PPP) loans via at least 90 fraudulent applications for a total more than $24 million. According to the Justice Department’s release, many of those applications were approved, paying out at least $17.4 million.
The seven individuals used a variety of methods to launder the money, including laundering the money through a casino. The indictment also identifies over $2.1 million in funds from twelve different bank accounts allegedly associated with the fraud scheme as subject to forfeiture which agents seized.
JPMorgan Chase has uncovered evidence that some of its customers and employees broke federal rules when obtaining and distributing billions of dollars in loans from one of the government's key coronavirus relief programs, according to an internal memo viewed by CBS MoneyWatch.
The Department of Justice has charged 57 people since May with trying to steal more than $175 million from a federal rescue program designed to avert mass layoffs and keep small businesses afloat during the coronavirus pandemic.
Acting Assistant Attorney General Brian Rabbitt said during a press conference Thursday the number of fraudulent loans is "significant."
Kenneth Gaughan, 41, of Washington, D.C., was arrested and charged by a criminal complaint, unsealed today, with fraudulently obtaining over $2.1 million in Paycheck Protection Program (“PPP”) loans and Economic Injury Disaster Loans (“EIDL”). He used those funds, in part, to purchase a $300,000 yacht, a $1.13 million rowhouse, and a $46,000 luxury sports sedan.
The owner of a Florida talent management company and four others were charged in complaints unsealed yesterday for their alleged participation in a scheme to file fraudulent loan applications seeking more than $24 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
A California man was arrested today and charged with fraudulently seeking over $8.5 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Nicola T. Hanna of the Central District of California.
Andrew Marnell, 40, of Los Angeles, California, was charged by criminal complaint, unsealed today upon his arrest, in the Central District of California with one count of bank fraud.
A Nevada man has been arrested in connection with allegations that he fraudulently obtained approximately $500,000 from the Paycheck Protection Program (PPP) loan and the Economic Injury Disaster Loan (EIDL) program, and then laundered the funds through friends and family in order to buy a house.
An Ashburn woman made her initial appearance in federal court this afternoon for conspiracy to commit wire fraud after allegedly submitting false loan applications in connection with the COVID-19 outbreak that resulted in the disbursement of over $1.4 million in proceeds under the Paycheck Protection Program (“PPP”).
A Fort Myers, Florida, contractor has been arrested and charged with attempting to defraud the Paycheck Protection Program (PPP) meant to help keep workers employed during the coronavirus. Casey David Crowther, 35, has been charged with making a false statement to a lending institution. If convicted, he faces a maximum penalty of 30 years in federal prison.
Samuel Yates, 32, of Maud, Texas, has been charged with violations of wire fraud, bank fraud and false statements to a financial institution and to the Small Business Administration after allegedly seeking more than $5 million dollars in Paycheck Protection Program loans through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, according to a press release by the Department of Justice on Tuesday.
A grand jury has indicted a Massachusetts man who allegedly faked his own death to avoid prosecution for fraudulently seeking hundreds of thousands of dollars in forgivable loans intended for businesses struggling during the coronavirus pandemic, while his accomplice has agreed to plead guilty in connection with the alleged crime, officials recently announced.
The U.S. Department of Justice (DOJ) has indicted a St. Paul, Minnesota, contractor for allegedly defrauding the Paycheck Protection Program, a special limited loan initiative meant to provide financial relief to businesses negatively impacted by the COVID-19 pandemic. U.S. Attorney Erica H. MacDonald said in a statement that Kyle William Brenizer applied for and received an $841,000 PPP loan under the name of his defunct construction company, True-Cut Construction LLC.
Lawyer Charged With Obtaining $9M in Fraudulent PPP Loans
The lawyer allegedly used the proceeds to purchase and remodel a house, and to invest in the stock market.
Authorities accuse South Floridians of using fake identities, shell companies for PPP fraud.
Federal prosecutors today accused a pair of brothers of lying and faking records while seeking nearly $7 million in Covid-19 relief money for their business.
Larry Jordan, 42 of Lancaster, and Sutukh El (who also goes by Curtis Jordan or Hugo Hurt), 38 of Buffalo, were charged with wire fraud conspiracy. If convicted, each man faces up to 20 years in prison and a $250,000 fine.
A Michigan man has been arrested in connection with a wire fraud scheme involving $3.1 million in Paycheck Protection Program loans.
Antonio George, 44, of Novi, was charged with a criminal complaint with one count of wire fraud.
https://www.abc4.com/news/64-year-old-salt-lake-city-man-pleads-guilty-to-federal-fraud-of-ppp-loan/
A 64-year-old Salt Lake City man pleaded guilty in federal court to fraud in information he provided when he applied for the Paycheck Protection Program loan.
Michael Leroi Douros was charged with two counts of bank fraud, two counts of making a false statement to a bank, and money laundering.
Maurice Fayne, who stars in Love & Hip Hop: Atlanta, has been arrested on federal bank fraud charges arising from a Paycheck Protection Program (“PPP”) loan that he obtained in the name of Flame Trucking.
“The defendant allegedly took advantage of the emergency lending provisions of the Paycheck Protection Program that were intended to assist employees and small businesses battered by the Coronavirus,” said U.S. Attorney Byung J. “BJay” Pak. “We will investigate and charge anyone who inappropriately diverts these critical funds for their own personal gain.”
Five small business owners have been indicted in connection with a fraudulent scheme to obtain nearly $4.1 million in loan funding under the Paycheck Protection Program (PPP).
A funeral home operator has been taken into custody on allegations he fraudulently sought over $13 million in Paycheck Protection Program (PPP) loans.
Jase DePaul Gautreaux aka Jase Dixon, 38, is charged in a criminal complaint, unsealed today upon his arrest, with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions.
A Winchester man was arrested today and charged with allegedly filing fraudulent loan applications seeking more than $13 million in forgivable loans guaranteed by the Small Business Administration (SBA) for COVID-19 relief through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Elijah Majak Buoi, 38, was charged in a criminal complaint with wire fraud, and will appear in federal court in Boston this afternoon.
A Texas man was charged in an indictment unsealed today with wire fraud, false statements to a financial institution and money laundering for his alleged participation in a scheme to file fraudulent loan applications seeking more than $3 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
A Little Rock woman was arrested this afternoon based on allegations she fraudulently obtained nearly $2 million in Paycheck Protection Program (PPP) loans intended to provide relief for small businesses affected by COVID-19. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today the indictment of Ganell Tubbs, 41.
The owner and operator of several information technology companies based in the Chicago area, Rahul Shah, 51, has been charged in a complaint with allegedly filing a bank loan application fraudulently seeking more than $400,000 in a forgivable Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
A Florida man was arrested and charged with fraudulently obtaining $3.9 million in Paycheck Protection Program (PPP) loans and using those funds, in part, to purchase a sports car for himself. Authorities seized a $318,000 sports car and $3.4 million from bank accounts at the time of arrest. David T. Hines, 29, of Miami, Florida, was charged by criminal complaint with one count of bank fraud, one count of making false statements to a financial institution and one count of engaging in transactions in unlawful proceeds.
A California man has been charged with allegedly filing bank loan applications fraudulently seeking more than $1.7 million dollars in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
William Sadleir, 66, of Beverly Hills, California, was charged in a federal criminal complaint filed in the Central District of California with wire fraud, bank fraud, false statements to a financial institution, and false statements to the SBA.
Washington Tech Executive Charged with COVID-Relief Fraud and Money Laundering.
Mukund Mohan, 48, of Clyde Hill, Washington, was charged by criminal complaint, unsealed today after he was taken into custody, in the Western District of Washington with one count of wire fraud and one count of money laundering.
Dennis Nobbe, 63, of Miami, Florida, was charged by criminal complaint, unsealed today upon his arrest, in the Southern District of Florida with wire fraud; health care fraud; conspiracy to commit health care fraud and wire fraud; making false statements to a financial institution; money laundering; and conspiracy to commit money laundering.
Dr. Eric R. Shibley, 41, of Seattle, Washington, was charged by criminal complaint, unsealed today upon his arrest, in the Western District of Washington with one count of wire fraud and one count of bank fraud
Oludamilare Olugbuyi, 40, of Washington, D.C., was charged in a federal criminal complaint filed in the District of Columbia with making false statements to a financial institution. According to the complaint, Olugbuyi submitted several fake and fraudulent documents to a financial institution in support of two PPP loan applications seeking more than $400,000 in forgivable loans for a construction firm that he owned. Specifically, Olugbuyi submitted what purported to be several IRS Forms 1099-MISC reporting hundreds of thousands of dollars in disbursements made to independent contractors.
Geoffrey M. Palermo was charged in a criminal complaint with wire fraud and making false statements in a loan application in connection with multiple schemes to defraud spanning from 2013 to 2020, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and U.S. Small Business Administration (SBA) Office of the Inspector General (OIG) Western Region Special Agent in Charge Weston King.
David Christopher Redfern, 31, of Trinity, North Carolina, was charged by criminal complaint filed in the Middle District of North Carolina with one count of wire fraud and one count of bank fraud. The complaint alleges that Redfern, through a company called Wilder Effects LLC (Wilder Effects) that he formed in January 2020, fraudulently applied for two EIDLs and a PPP loan between April and June of this year.
Melissa Turasky, the owner of Gifford’s Kitchen and Social, used some of the money from the Paycheck Protection Program to make payments on her credit card, federal prosecutors said in an indictment unsealed Friday.
Check back with us for more as they are reported.
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