Hayford later pleaded guilty. Authorities revealed they recovered $1.3 million of the funds. He is alleged to have bought a $400,000 house with taxpayer funds. Federal authorities are targeting companies and individuals suspected of defrauding the Paycheck Protection Program (PPP). Michael George McQuarn, 51, of Austin, is charged with with fraudulently receiving over $2 million in Small Business Administration loans for two fictitious companies, Vantastic Voyages, LLC and Happy Days Movers, LLC. We will work tirelessly to protect the integrity of the EIDL and PPP and to help small businesses stay afloat., The COVID-19 pandemic has caused financial hardships for many hardworking business owners across the nation. 95% Success Rate. Adarin Jones, a/k/a Adrian Jones, 42, of Atlanta, Georgia. Authorities say he went on a personal spending spree with taxpayer money. Authorities say he put the PPP loan proceeds in accounts under the control of his relatives and minor children. Charges were recently brought against several celebrities, entertainers and business leaders in Georgia for allegedly defrauding the Paycheck Protection Program for a total of more than $3. We can use our experience to help reduce your companys risk (and your personal risk) to the fullest extent possible, and we encourage you to contact us for a free and confidential assessment of your companys legal needs. A lock ( With few case-by-case exceptions, Firm's practice is limited to matters and questions of federal law and federal procedure. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. Lock He has now gotten over $100K from all 4 businesses I reported 3 times and no response.. nothing! The maximum that one person can get for a PPP loan is $20,833. Oberheiden P.C. Federal authorities claim they used some of the coronavirus pandemic funds to buy luxury automobiles. Several individuals he submitted payroll documentation for said they never worked for his company, investigators allege. High-Living Florida Man (Florida July 27), 29. The defendants allegedly took advantage of emergency financial assistance intended for business owners suffering the economic effects caused by the COVID-19 pandemic, said Acting U.S. Attorney Kurt R. Erskine. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts, For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. The criminal complaints describe egregious CARES Act abuse, assuming the government ultimately proves the allegations. Even so, youd think it wouldnt be hard to find out who someone really is in this day and age. Authorities seized the Range Rover, worth about $125,000, jewelry, $120,000 in cash, and $3 million from 10 bank accounts. 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. According to the SBA, thePaycheck Protection Program ended on May 31, 2021. To provide the best experiences, we use technologies like cookies to store and/or access device information. Dr. Eric R. Shibley is charged with one count of wire and bank fraud each. ("Firm") works with affiliated lawyers (referred to as "Local Counsel") in various cities and states across the United States. Moller received close to $600K in stimulus PPP loan. Woman Achieves Distinction as 50th Defendant Charged with PPP Fraud (Florida September 3), 46. 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. He allegedly claimed to have 250 employees when there is no record of any in his business, Rai Family LLC. Postal Inspection Service (USPIS) and the Drug Enforcement Administration executed a search warrant at the home of Alicia Quarterman in connection with an ongoing narcotics trafficking investigation. Many cases involve forged IRS filings one of the easiest things for the government to check. A crucial aspect of the PPP is that companies are only allowed to use the funds they receive for specific authorized purposes. Man Uses Aliases to Seek $22 Million (California October 2), 56. In reality, however, none of the businesses had employees or payroll expenses. Hopefully someone will find this. While the government is helping those in need, law enforcement is swiftly addressing these vulnerabilities. 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. The provisions of the CARES Act, in conjunction with an officially declared disaster by the United States Government, allowed the Small Business Administration (SBA) to offer EIDL funding to business owners negatively affected by COVID-19. Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBAs vital economic programs. That didnt stop him from allegedly applying for two PPP loans using different company names. But the program attracted a few rotten apples that committed PPP loan fraud. If you dont know, those are characters from the Game of Thrones TV series. Secure .gov websites use HTTPS Its intended to offer news and peer perspective on an important issue that affects us as business owners. Darrell Thomas, 35, of Duluth - pleaded guilty on June 16, 2021 to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering. A Bentley Convertible and a Jaw Dropping Scheme (Texas October 9), 58. Nationwide Federal Defense, Compliance and Litigation. It is free MONEY no one will repay one single dollar. 2023 Cox Media Group. This has caused some entrepreneurs, employers and owners to think twice about applying. NFL Player Blows 62 Grand at the Hard Rock Casino (Florida September 10), 49. Why not let them handle it themselves you arent getting a reward for reporting. Agriculture, Forestry, Fishing and Hunting. But keep it all in perspective. The charges allege he applied several times to get aid totaling $3 million, in the names of businesses with no actual operations. 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. He will just out of prison. They allegedly discussed their fraud in email and one assumed the identity of his own brother. Its bad enough when one person tries to defraud taxpayers. Look up the extravagant purchases of the nations record setting check kiter Adam W****man. Another report by the SBA OIG found tens of thousands of examples of companies that received PPP loans ineligibly. The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law passed in March 2020 that provided $2.2 trillion dollars in emergency financial assistance to the millions of Americans who are suffering the economic effects caused by COVID-19. To support these payroll figures, each businesss loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report payroll taxes, for each quarter of 2019 and by a bank statement or a spreadsheet reflecting payroll expenses. Eight other defendants include Damion O. Mckenzie, Andre M. Clark, Keyaira Bostic, Wyleia Nashon Williams, James R. Stote, and Ross Charno, all of Florida. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. Miami Wannabe Farmers (Florida August 26), 40. The estimated amount was about. The technical storage or access that is used exclusively for anonymous statistical purposes. This case is being investigated by the U.S. Apparently one tim isnt enough for some people. Gaines is set to be sentenced on October 6. Nurse Charged for Defrauding COVID-19 Relief Programs (Florida January 8, 2021), 78. Bank Fraud (18 U.S.C. She is alleged to have obtained nearly $600,000. Claims of employees who didnt exist. Walmart Project Manager (Oklahoma June 4), 10. Anecdotally, however, courts are routinely handing down . He also allegedly submitted forged tax documents. Richard Ayvazyan, Marietta Terabelian, Artur Ayvazyan, Tamara Dadyan were charged in a complaint claiming they conspired together as part of a disaster relief loan fraud ring based in Los Angeles. The complaint alleges Smith bought a $96K Ferrari and other luxury items and withdrew $271,805 in loan proceeds. Three people she allegedly claimed as staff told investigators they never heard of her company. bank fraud, making false statements to an FDIC-insured financial institution, or making false statements to the SBA). Geoffrey M. Palermo of Novato faces charges of wire fraud and making false statements. [SIGN UP: WSB-TV Daily Headlines Newsletter]. However, the alternative of waiting would not have served the country well. 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. Go big or go home could be the motto here. Man Gives 23 People Pandemic Pay, Buys House (Nevada August 26), 39. Transferred $335k to Personal Accounts (California -October 29), 63. Want to know if your employer got aPaycheck Protection Planor PPP loan? Share sensitive information only on official, secure websites. Firm's engagement letter and Firm's website disclaimers provide additional details. Jase DePaul Gautreaux aka Jase Dixon, a funeral director in Houston, is charged with seeking $13 million in loans and ultimately receiving over $1.6 million. Michael Bischoff, the CEO and co-founder of a Michigan chain called Passport Pizza, allegedly falsified documents and employees to obtain $931,000 in PPP money. 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? In order to account for all disbursements from their PPP loans, companies should deposit their loans into distinct accounts, and they should not commingle their PPP loan funds with any other company assets. 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. Specifically, if and when Firm cooperates with Local Counsel, Firm will disclose the details to the client in writing for their approval. Check with your attorney and/or accountant with questions. Handmade Entrepreneur (Arkansas July 16), 27. 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. Atlanta, GA 30303-3309. As part of his guilty plea, Darrell Thomas admitted his participation in fraudulent conduct totaling more than $14.7 million, including more than $11.1 million in fraudulent PPP loans, more than $1.15 million in fraudulent Economic Injury Disaster Loans, and more than $2.4 million in fraudulent automobile loans. Also, the seizure warrant revealed multiple California unemployment benefits debit cards. In April he allegedly obtained a PPP loan of $1.7 million by falsely certifying that GMP Cars had staff for whom it paid salaries and payroll taxes. Report fraud/thefthttps://www.sba.gov/funding-programs/loans/covid-19-relief-options/report-id-theft-fraud Cherry was on supervised release in an unrelated federal case when he applied to the Small Business Administration program. IT Company Owner (Illinois June 16), 13. We will work tirelessly to protect the integrity of the EIDL and PPP and to help small businesses stay afloat.. 2023 www.onlineathens.com. Andre Gainess sentencing is set for October 6, 2021 before Judge J.P. Boulee. 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. 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. The False Claims Act can impose steep financial penalties, including treble damages. Authorities state Bellamy allegedly obtained a Paycheck Protection Program loan of $1,246,565 for his own company, Drip Entertainment LLC and then spent the proceeds on purchases at Dior, Gucci, and jewelers as well as withdrawing $302,000 in cash. He allegedly laundered funds he received by writing checks for $8,330 each to 23 people. The Justice Department is hot on their trail. Medical Company Owner (Florida July 10), 23. NINETY-NINE (99%) percent will NOT need to worry and lose sleep and that is because, The U.S. Small Business Administration is a United States government agency. 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. Charged were: Darrell Thomas, Andre Lee Gaines and Carla Jackson of Georgia; Kahlil Gibran Green Sr. of Ohio; and Bern Benoit of California. A locked padlock He allegedly squandered thousands at strip clubs and nightclubs. ATLANTA Seventeen more individuals have been charged in connection with a fraudulent scheme to obtain approximately $11.1 million in Paycheck Protection Program (PPP) loans and to use those funds to purchase luxury vehicles, jewelry, and other personal items. 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. Great Article! Small Business Trends is an award-winning online publication for small business owners, entrepreneurs and the people who interact with them. According to the U.S. Also, the EIDL loan application date has been extended through 2021. 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. Michael C. Moller was charged with fraudulently seeking $4.7 million in PPP forgivable loan that he applied for in the name of various people including his father, girlfriends brother and girlfriends son. What are the Red Flags for PPP Loan Fraud? 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. But the Program attracted a few rotten apples that committed PPP loan proceeds in accounts the. Those in need, law enforcement is swiftly addressing these vulnerabilities bank fraud, making statements. Judge J.P. Boulee dont know, those are characters from the Game of Thrones TV series know if employer... 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