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. Every case is different, any prior result described or referred to herein cannot guarantee similar outcomes in the future. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Along with Katrina Lawson, 41, a former Futon County Sheriffs deputy living in Houston, Quarterman learned the requirements for the PPP and EIDL programs and began submitting applications for friends and family members who didnt actually own businesses, then charge a fee once the SBA or partner banks paid out the fraudulent loans.They expanded the scheme by recruiting co-conspirators who would mostly text their bank and personal information to Quarterman, who would, in turn, provide the information to Lawson to submit the applications.Federal prosecutors accused some of Lawsons and Quartermans co-conspirators of recruiting more additional participants to funnel through the application process and also creating fake tax documents to support the bogus SBA applications. She is alleged to have obtained nearly $600,000. He allegedly used those funds to buy a 33-foot Cruisers Yacht for $300,000, a $1.13 million rowhouse, and a $46,000 luxury Kia Stinger. They allegedly filed fake tax documents to support the loan applications. In such a case, a client will sign an engagement exclusively with the Local Counsel. 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. He got up to $5.7 million in loans. At Oberheiden P.C., we are actively representing companies with regard to PPP compliance during the coronavirus pandemic, and we are representing companies in PPP loan fraud audits and investigations as well. What to do if the SBA doesnt forgive your loanhttps://www.schwabe.com/newsroom-publications-a-guide-to-the-sba-ppp-loan-forgiveness-review-process. The False Claims Act can impose steep financial penalties, including treble damages. Firm's engagement letter and Firm's website disclaimers provide additional details. Fewer than 150 defendants out of of over 5.2 million loans is a minuscule percentage. The applications stated that each business had between 59 and 69 employees in February 2020 and averaged approximately $295,000 to $342,000 in monthly payroll expenses. India Middleton, 34, of Accokeek, Maryland. PPP2 started accepting applications on January 11, 2021. Arman Manukyan, a San Fernando Valley man, is charged with fraudulently obtaining an $867,000 loan for a shell sewing company, Argo Global. 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. Also, the seizure warrant revealed multiple California unemployment benefits debit cards. 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. Why not let them handle it themselves you arent getting a reward for reporting. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. Sum of Initial Approval Amount. He was approved for $3.9 million. However, the alternative of waiting would not have served the country well. If you got funding after June 5, you have five years to repay. A Cessna Aircraft and a Lexus (Virginia October 20), 59. When seeking forgiveness, companies are required to provide documentation, and they must affirmatively certify as to the accuracy of this documentation and as to compliance itself. Suite 600 In order to ensure that no one at your company raises questions for federal authorities unnecessarily, it is imperative to rely on the advice and representation of experienced federal counsel. A lock ( Small Business Trends is an award-winning online publication for small business owners, entrepreneurs and the people who interact with them. The only way to get more money than that is to either 1) claim to have employees that you didn't really have, or 2) inflate your earnings amount on the application. He allegedly used aliases to obtain $8.5 million in aid using fake tax filings and falsified records of payroll costs. The COVID-19 pandemic has caused financial hardships for many hardworking business owners across the nation. Our mission is to bring you "Small business success delivered daily.". Nationwide Federal Defense, Compliance and Litigation. This owner of a wedding planning company is charged with submitting two PPP applications, and claiming to have 120 employees when he actually had none. 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. Jae H. Choi, a licensed attorney in New Jersey, was charged with getting $9 million in PPP funds from three different lenders, based on fabricated employees and forged documents. 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 overwhelming majority of small businesses have no allegations of Paycheck Protection Program fraud. 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. This is the latest in an onslaught of PPP fraud cases in Georgia and across the U.S. . Adarin Jones, a/k/a Adrian Jones, 42, of Atlanta, Georgia. To provide the best experiences, we use technologies like cookies to store and/or access device information. (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. However, the Government watchdog also recommended oversight of the 4 million smaller loans. After two banks declined, Rowberry allegedly said she would help him re-apply through a friend. Ganell Tubbs, the entrepreneur owner of Little Piglet Soap Company and Suga Girl Customs, an Etsy shop, is charged with fraudulently obtaining nearly $2 million in PPP loan. In some cases, pursuant to Rule 7.04 of the Texas Disciplinary Rules of Professional Conduct and the equivalent in other jurisdictions, a case is referred to a Local Counsel, the Firm will not participate in the representation. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. Lock Fayne allegedly claimed he had 107 workers and submitted forged bank statements. He allegedly lied about not being under criminal charges he in fact was under indictment for a bribery scheme. Under the terms of the program, for example, companies must represent that: During a federal PPP loan fraud audit or investigation, federal agents will not just be looking to assess loan recipients eligibility, but they will also be looking to determine whether companies have documentation on hand to qualify the representations they made in their PPP loan applications. 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. If an applicant knowingly answers any of these questions falsely, it may face False Claims Act liability.. This has caused some entrepreneurs, employers and owners to think twice about applying. SBA partner banks initially approved 11 of the fraudulent PPP loans Lawson submitted and ultimately paid . 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. The two allegedly worked together on the scheme (mighty neighborly of them!). He allegedly lied about his criminal past, and submitted fake tax documents including names of people who did not work for the businesses. 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. However, none of the businesses had any legitimate business with any of the businesses or accounts to which they sent the proceeds. Co-Leader of COVID-19 Loan Fraud Ring Extradited from Montenegro to Begin Serving Prison Sentence . Great Article! And for how much? A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. Authorities seized the yacht, car, and various bank and investment accounts. More than 15% of PPP loans had at least one indication of potential fraud. Ex-Felon Charged With PPP Loan Fraud (Rhode Island September 22), 53. The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. The overwhelming majority of owners who received PPP loans legitimately used the money to retain employees and stay operational. Benjamin Hayford is charged with fraud for seeking $4.4 million in PPP financing. payments for travel, vehicles, and home office expenses) can also create risk. Unfortunately, the owners of Victoria Nails & Spa saw this program as their own personal piggy bank.. Meghan Thomas, 32, of Alpharetta, Georgia, 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 several businesses loans. 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. It is free MONEY no one will repay one single dollar. 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. 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. Trucking Company Owner (Utah July 8), 22. "Along with our federal, state and local law enforcement [] Atlanta, GA 30303-3309. 17 Mtskheta str . 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. . The defendants are charged with using fake and stolen identifies to apply for 35 CARES Act loans. 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.. IT Services Company Owner (Massachusetts June 22), 15. It is alleged he got over $190,000 in proceeds and managed to withdraw cash or cashiers checks for $140,000. WSB-TV Channel 2 - Atlanta facebook feed(Opens a new window), WSB-TV Channel 2 - Atlanta twitter feed(Opens a new window), WSB-TV Channel 2 - Atlanta instagram feed(Opens a new window), WSB-TV Channel 2 - Atlanta youtube feed(Opens a new window), UGA star charged in deadly crash turns himself in, released shortly after, records show, UGA football staffer had blood alcohol level twice the legal limit before crash that killed 2, 2 killed in crash after attempting to pass MARTA bus, South Fulton police say, 16-year-old reported missing found dead at Gwinnett home, police say, Man pulls gun on Kroger employee, steals meat, Clayton County police say, Meghan Thomas, 32, of Alpharetta - 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 several businesses loans, Jesika Blakely, 34, 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 her involvement in several businesses loans, John Gaines a/k/a Marty Gaines, 56, of Marietta - 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. Owner of Private Investigation Firm (Ohio June 24), 18. Bern Benoit, 45, of Burbank, California, pleaded guilty on March 11, 2021 to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Transportation Management Services Inc. Benoits sentencing is set for September 8, 2021 before Judge J.P. Boulee. While this information may constitute attorney advertising in some jurisdictions, merely reading this information does not create an attorney-client relationship. The Department suggests that "criminal rings" are orchestrating this fraud, without providing any real details. 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. Sum of Current Approval Amount. Keeping it All in the Family (Arkansas December 16), 73. Miles allegedly used the gains to purchase a Bentley and Cadillac, and withdrew hundreds of thousands of dollars. Lock Find an attorney to defend youhttps://lawyers.findlaw.com/lawyer/practice/white-collar-crimes Federal authorities claim they used some of the coronavirus pandemic funds to buy luxury automobiles. He then went on a buying extravaganza, spending on a Tesla, a Bentley, two condominiums, and paying his home mortgage. As part of the court-authorized search, law enforcement seized Quartermans cell phones and discovered a handwritten ledger with the personal and banking information of several individuals. 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. Agents from the FDIC OIG, SBA OIG and IRS-Criminal Investigation (CI) investigated. 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