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. Adarin Jones, a/k/a Adrian Jones, 42, of Atlanta, Georgia. 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.. 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. He received $593,590. To provide the best experiences, we use technologies like cookies to store and/or access device information. (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds. Attorneys, including the Fraud Section, have resulted in a variety of charges, including wire fraud (18 U.S.C. 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. Subsequently, upon receiving PPP loans (or, ideally, in anticipation of receiving a PPP loan), companies should adopt policies and procedures that are designed to ensure continual PPP compliance. Georgia has a total of 553,322 businesses that received Paycheck Protection Program (PPP) loans from the Small Business Administration. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. Robert, youre probably right about finding fraud for years to come. Man Charged with Identity Theft (Florida August 10), 34. Owner of Private Investigation Firm (Ohio June 24), 18. Nationwide Federal Defense, Compliance and Litigation. According to Federal authorities, Crowther submitted an application on behalf of his roofing company that contained false and misleading statements. 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. He allegedly used the loot to buy a Tesla car, make personal investments and make his home mortgage payments. And you wont believe how rotten they are. If the PPP debt is not forgiven, the interest rate is very low 1%. Great Article! 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. 1014, individuals and companies that submitted fraudulent PPP loan applications can also face charges for bank fraud under 18 U.S.C. 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. Postal Inspectors are committed to aggressively pursuing investigations in which the U.S. Mails are used to facilitate criminal schemes.. Due to a high volume of calls, we are unable to take on more PPP clients at this time. Attorneys office, the companies didnt exist or didnt have the employees he claimed. 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. Assistant U.S. Attorney Miguel R. Acosta is prosecuting the case. He ultimately received over $2 million but the government seized $1.98 million from business bank accounts. 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. He allegedly laundered funds he received by writing checks for $8,330 each to 23 people. On March 16, 2020, Attorney General William Barr directed all 94 U.S. Attorneys Offices to prioritize investigating and prosecuting PPP loan cases of fraud. He spent $29,ooo on a Harley Davidson. Chinese Man Found Guilty Of $20 Million Dollar PPP Fraud Scheme Chinese national who lived in New York pled guilty in connection with a fraudulent scheme to obtain over $20 million. Most of the funds are going to help the nations 31 million small businesses. SBA partner banks initially approved 11 of the fraudulent PPP loans Lawson submitted and ultimately paid . On average, companies that received a loan got $101,000 according to SBA data. Nor, will we seek out applicants who made technical mistakes in processing paperwork or honestly misunderstood regulatory or certification requirements. Find an attorney to defend youhttps://lawyers.findlaw.com/lawyer/practice/white-collar-crimes 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. 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. If an applicant knowingly answers any of these questions falsely, it may face False Claims Act liability.. 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. The maximum PPP loan is based on 20.83% of your Schedule C income. Walmart Project Manager (Oklahoma June 4), 10. But it may not take that long. NOTICE: Prior results do not guarantee similar outcomes; attorney advertising. 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. Buoi allegedly misrepresented how many wokers he had and that the United States was their primary residence (required). I was eventually permanently laid off at the end of June. These are significant questions, and they are questions that you need to answer sooner rather than later. Despite the fact that the Paycheck Protection Program was launched in March 2020 with the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, federal authorities have already identified several hallmarks of PPP loan fraud. Are you or your company at risk for facing allegations of PPP loan fraud? Still, a June 2020 report by the Government Accountability Office found, there is a significant risk that some fraudulent or inflated applications were approved. Treasury Secretary Steven Mnuchin then announced that the Treasury Department would review loan recipients over $2 million. As part of their crimes, the defendants not only submitted false information for the business loans, but for the PPP, they also allegedly created fake Internal Revenue Service documentation to support the applications. If your company received a PPP loan, is it at risk? Dinesh Sah of Dallas was indicted on charges he filed 15 fraudulent loan applications to 8 lenders in the total amount of $24.8 million. It will be viewed as a red flag for fraud in the event of an SBA audit or an SBA-OIG or DOJ investigation if a company does not have documented policies and procedures for PPP compliance. They allegedly used the proceeds to make down payments on personal homes. Florida Man Buys 40-foot Catamaran (Florida September 1), 43. He allegedly applied for $441,000 under the Federal Paycheck Protection program. Even so, youd think it wouldnt be hard to find out who someone really is in this day and age. According to the SBA, thePaycheck Protection Program ended on May 31, 2021. Related coverage:Treasury names 650K small businesses receiving govt loans. He is charged with false statements to a financial institution, bank fraud and engaging in unlawful monetary transactions. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. 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. 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. 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.. 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. Feel free to share this infographic (attribution required) on your own site by copying and pasting the code below: Could these prosecutions involve nothing more than paperwork mistakes? The pair allegedly received $97,800 and $125,900 respectively. 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. Authorities revealed they recovered $1.3 million of the funds. Read more. Heres a list of the PPP loan prosecutions to date: 1. Want to know if your employer got aPaycheck Protection Planor PPP loan? Nurse Charged for Defrauding COVID-19 Relief Programs (Florida January 8, 2021), 78. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Terry was sentenced to 65 months in federal prison for other cases. Charged were: Darrell Thomas, Andre Lee Gaines and Carla Jackson of Georgia; Kahlil Gibran Green Sr. of Ohio; and Bern Benoit of California. Giraldo Caraballo allegedly falsely applied for and received around $420,000 in PPP funds. However, on April 14, 2020, Olugbuyi allegedly filed a 1040 non-filer return reporting $1 in income for 2019 which qualified him to receive a $1,200 economic impact payment. 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.