"Small Business Trends" is a registered trademark. Fugitive defendant who fled during trial convicted by federal jury for laundering millions of dollars stolen from fraud victims throughout the U.S. 10 Defendants Indicted In Multi State, Fraudulent COVID 19 Related Business Loan Scheme. I was eventually permanently laid off at the end of June. Lastly, along with all of the red flags for PPP loan fraud discussed above, there are various other issues that can tip off federal authorities during audits and investigations as well. IT Services Company Owner (Massachusetts June 22), 15. Restaurant Owner and Son Charged ( North Carolina December 17), 75. Buoi allegedly misrepresented how many wokers he had and that the United States was their primary residence (required). Assistant U.S. An 18-Room Tuscan Mansion on the Taxpayer Dime (New York September 17), 51. 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. These are significant questions, and they are questions that you need to answer sooner rather than later. 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. He allegedly used the loot to buy a Tesla car, make personal investments and make his home mortgage payments. Another key aspect of the PPP is that loans issued under the program are eligible for forgiveness if they are used entirely for authorized purposes. According to Federal authorities, Crowther submitted an application on behalf of his roofing company that contained false and misleading statements. Man Sends Money to Pakistan and Books Flight (New Jersey December 15), 72. Federal auditors and investigators will view these types of activities with skepticism, and as potential evidence of an attempt to either fraudulently obtain a PPP loan or use PPP loan funds for unauthorized purposes. Allegations also claim he perpetrated a credit card scam on low-income patients by getting them to pay for medical expenses for services he did not fully render. Fugitive defendant who fled during trial convicted by federal jury for laundering millions of dollars stolen from fraud victims throughout the U.S. Twenty Two Defendants Charged In Connection With Alleged $11.1 Million Paycheck Protection Program Fraud Scheme. 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. 43. Unfortunately, the owners of Victoria Nails & Spa saw this program as their own personal piggy bank.. Main Office: Louis was awaiting trial on unrelated charges dating from 2014 2015. According to the SBA, the Paycheck Protection Program ended on May 31, 2021. Find an attorney to help you obtain a loanhttps://lawyers.findlaw.com/lawyer/practice/business-commercial-law 2023 www.onlineathens.com. 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. With few case-by-case exceptions, Firm's practice is limited to matters and questions of federal law and federal procedure. 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. If there is evidence of fraud, people can go to jail for a $20,000 PPP loan, just like someone whose PPP loan was $100,000 or $1 million. A Cessna Aircraft and a Lexus (Virginia October 20), 59. Firm's lawyers are only licensed to practice state law in the states mentioned in their respective biographies. Authorities say he went on a personal spending spree with taxpayer money. Search our database that is tracking this information. ) or https:// means youve safely connected to the .gov website. 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. The impact of COVID-19 on small businesses around the country has been devastating, said Acting U.S. Attorney Kurt R. Erskine. Andrew Marnell of Los Angeles is charged with bank fraud. Assistant U.S. Attorney Miguel R. Acosta is prosecuting the case. Its bad enough when one person tries to defraud taxpayers. Ophthalmologist Already Under Indictment (New York June 24), 19. The federal Paycheck Protection Program (PPP) is subject to a whole host of rules and restrictions. James McFarland, 56, of Atlanta, Georgia. US Attorney's Office for Middle District of Ga. investigates high volume of PPP loan fraud By Jessie Gibson Published : Jun. 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. Lauren Marcel Duhart, Joshua Bernard Smith, Steve Ronald Lewis, Christopher J. Agard, Henry Duffield, Jeremy Brandon Latourneau, Derick Keane were charged in an indictment with laundering $750,000 obtained fraudulently, including over $390,000 from a PPP loan. Florida Man Buys 40-foot Catamaran (Florida September 1), 43. Honestly, I think theyll be finding and prosecuting these for years. Firm's engagement letter and Firm's website disclaimers provide additional details. No. A lock ( By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. 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. Miami Wannabe Farmers (Florida August 26), 40. The maximum PPP loan is based on 20.83% of your Schedule C income. Lee Price 3rd in Houston defrauded SBA of $1.6 million despite a 14 year record of crimes. According to the indictment, Turasky had already been evicted from the restaurant rental space and her employees had been terminated before she applied for the PPP loan. Sum of Undisburse Amount. Postal Inspection Services and the Drug Enforcement Administration of methamphetamine hidden in dog food and shipped to one of the defendants led to the discovery of details of people in Houston, the Washington, D.C.-Metro area, and Metro Atlanta involved in a scheme to defraud the government of money through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In the loan applications, the defendants certified that each applicant business was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors; that the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents and forms was true and accurate in all material respects. When the SBA-OIG or DOJ launches an investigation, executing an effective and timely defense is imperative. Gaines is set to be sentenced on October 6. On average, companies that received a loan got $101,000 according to SBA data. One defendant was so brazen he allegedly posted a rap video online flashing $100 bills. All information on this website has been prepared for informational purposes only and does not constitute legal advice. However, we have created a list of PPP resources that should help you with any challenges that you might have. Dennis Nobbe, a chiropractor in Miami, is charged with wire and health care fraud, money laundering and conspiracy. While this information may constitute attorney advertising in some jurisdictions, merely reading this information does not create an attorney-client relationship. Argires allegedly invested some of the proceeds in a cryptocurrency account and withdrew cash via ATM transactions. Small Business Trends is an award-winning online publication for small business owners, entrepreneurs and the people who interact with them. The Small Business Administration has released a list of businesses that have received emergency pandemic loans. 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. 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. Quarterman would recruit co-conspirators who would send her their personal and banking information mostly via text message, and then Quarterman would send that information to Lawson who would submit the applications to the SBA. Millions of Americans eventually will apply for forgiveness. Nurse Charged for Defrauding COVID-19 Relief Programs (Florida January 8, 2021), 78. Some of Quarterman and Lawsons co-conspirators also allegedly recruited additional participants to the scheme and then sent their information to Quarterman for fraudulent loan applications. If the PPP debt is not forgiven, the interest rate is very low 1%. The government issued a seizure warrant for a Mercedes Benz SUV and more than $500,000 from a bank account. Richard B. Russell Federal Building 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. The complaint states they received loans of $450,000 and some of the proceeds were allegedly used to purchase a Mercedes E400. Paycheck Protection Program (PPP) loans have aided more than 5.2 million small business owners, providing a much-needed lifeline during the Coronavirus outbreak crisis. Brandon Casutt of Henderson, Nevada, is charged with EIDL and PPP fraud to the tune of $500,000. Abramovs allegedly got nearly $2 million from seven lenders. He then went on a buying extravaganza, spending on a Tesla, a Bentley, two condominiums, and paying his home mortgage. It is not intended as legal advice. payments for travel, vehicles, and home office expenses) can also create risk. 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. McQuarn allegedly used the cash for personal use including buying a 26-foot Pavati Wake Boat and a Rolls Royce. Number of Loans Approved. Recording Artist Buys Ferrari with PPP Money (Florida October 6), 57. See the SBA website for updated forgiveness information. Georgia has a total of 553,322 businesses that received Paycheck Protection Program (PPP) loans from the Small Business Administration. 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). The estimated amount was about. Jean R. Lavanture of Saugerties was arrested for bank fraud for allegedly obtaining $5 million in government-backed loan for companies that had neither employees nor income in recent years. The defendants are charged with various counts of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering. He allegedly submitted false documentation on behalf of multiple companies purporting to register emotional support animals. However, the Government watchdog also recommended oversight of the 4 million smaller loans. 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. Allegedly Hsu applied in the names of current and former employees, and incorporated a fake company also. Azhar Sarwar Rana, 30, of Newton, New Jersey, was charged for submitting a fraudulent application for a real estate development company, and falsified payroll data. Claims of employees who didnt exist. Man Uses Aliases to Seek $22 Million (California October 2), 56. 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