He got up to $5.7 million in loans. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. The government was able to seize $6.5 million. Former Police Officer Sentenced For Money Laundering. Official websites use .gov Darrell Thomas, 35, of Duluth, Georgia, pleaded guilty on June 16, 2021 to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering. However, none of the businesses had any legitimate business with any of the businesses or accounts to which they sent the proceeds. The Department suggests that "criminal rings" are orchestrating this fraud, without providing any real details. In August 2021, Ms. VanPelt pled guilted to bank fraud related to submitting six fraudulent PPP loan applications on behalf of six companies she owned or controlled. Wads of cash, casino runs and strip club visits also figured in the mix in the PPP loan fraud spree. Here are 10 red flags for PPP loan fraud: Companies are required to make a number of affirmative representations during the PPP loan application process. The Form 941s, bank statements, and W2 payroll spreadsheets had all been fabricated. 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. A Cessna Aircraft and a Lexus (Virginia October 20), 59. These are significant questions, and they are questions that you need to answer sooner rather than later. During the investigation, the U.S. seized nearly $4 million in PPP loan proceeds, four luxury vehicles, and several jewelry items. Or do you want to know whichcompanies got taxpayer-fundedloans? Gaughan is also charged separately with allegedly embezzling $472,000 from the Catholic Archdiocese of Washington, D.C. where he previously worked. The U.S. Secret Service and IRS participated in this investigation, along with the U.S. Attorney for the Southern District of Florida. It is free MONEY no one will repay one single dollar. He allegedly claimed to have 250 employees when there is no record of any in his business, Rai Family LLC. Assistant U.S. An 18-Room Tuscan Mansion on the Taxpayer Dime (New York September 17), 51. Our searchable databaseallows users to look up dollar allotments by industry, and lenders. 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. PPP Loan Fraud List | Who Got a PPP Loan? Arman Manukyan, a San Fernando Valley man, is charged with fraudulently obtaining an $867,000 loan for a shell sewing company, Argo Global. Authorities revealed they recovered $1.3 million of the funds. Use our searchable database to see who in Georgia received funds. An official website of the United States government. 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. A package containing methamphetamine hidden in dog food containers had been mailed to Quartermans home. He also allegedly submitted forged tax documents. Co-Leader of COVID-19 Loan Fraud Ring Extradited from Montenegro to Begin Serving Prison Sentence . They allegedly used the proceeds to make down payments on personal homes. Its a wild tale. Wells Fargo previously fired him for embezzlement, according to news reports. Fake IRS filings. Heres a list of the PPP loan prosecutions to date: 1. The DOJ has already initiated multiple federal cases against individuals alleged to have converted PPP loan funds for personal use, and in these cases the defendants are facing hefty fines and years, if not decades, of federal imprisonment. The attempted fraud is staggering: $341,000,000 through January 2021. Nine EIDL and PPP Loan Applications (Washington October 27), 62. The federal Paycheck Protection Program (PPP) is subject to a whole host of rules and restrictions. It is not intended as legal advice. Abramovs allegedly got nearly $2 million from seven lenders. 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. A crucial aspect of the PPP is that companies are only allowed to use the funds they receive for specific authorized purposes. Nadine Consuelo Jackson is charged with bank fraud and other charges for seeking a forgivable loan in the amount of $1.3 million, $1.2 million and another $46,000 in Economic Injury Disaster funding. This is the latest in an onslaught of PPP fraud cases in Georgia and across the U.S. . Georgia has a total of 553,322 businesses that received Paycheck Protection Program (PPP) loans from the Small Business Administration. 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? 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). Want to know if your employer got aPaycheck Protection Planor PPP loan? 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. In such a case, a client will sign an engagement exclusively with the Local Counsel. The maximum that one person can get for a PPP loan is $20,833. Forged account statements. Kindambu made some expensive personal purchases that authorities say were not permissable under the loan terms, including the plane the Lexus. 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. The government wisely decided to move fast and let the justice system track down any miscreants. $1,659,747. (Shutterstock) ATLANTA Federal fraud charges were filed against. Under 18 U.S.C. The U.S. Department of Justice say that approximately $11.1 million in PPP loans were taken and the funds were then used to buy luxury vehicles, jewelry, and other personal items. He ultimately received over $2 million but the government seized $1.98 million from business bank accounts. 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 EIDL application information, submitted by the applicant, was used by SBA systems to calculate the amount of money the business was eligible to receive in the form of a loan. He allegedly created fake technology companies to obtain $1.5 million in funds. In order to get Paycheck Protection loans forgiven and not have to repay the loan, owners have to show proof that at least 60% was used for payroll and the rest for other permitted expenses. 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. 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. The defendants are accused of submitting at least 14 fraudulent loan applications around April-August 2020 in attempts to get more than $14.7 million, the DOJ said. How does the government miss a well know con artist? Where: The Bank of America PPP loans class action was filed in a California federal court. Fayne allegedly claimed he had 107 workers and submitted forged bank statements. While this information may constitute attorney advertising in some jurisdictions, merely reading this information does not create an attorney-client relationship. Ngoc Manh Nguyen, Victoria Dieuy Ho, and Dat Tat Ho were charged for allegedly having misrepresented employee payroll figures to receive $13 million in COVID-19 loan funds. 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. Hopefully someone will find this. Help us crowdsource fraud detection in the PPP program! He is alleged to have bought a $400,000 house with taxpayer funds. Sutukh El even posted a rap video holding a large amount of $100 bills after he had made a cash withdrawal, having received this $600,000 plus. Government officials have seized more than $400,000. Share sensitive information only on official, secure websites. He allegedly received $17.3 million and spent the money on a Bentley convertible as well as sending millions of dollars abroad. NOTICE: Prior results do not guarantee similar outcomes; attorney advertising. They allegedly discussed their fraud in email and one assumed the identity of his own brother. 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. While the government is helping those in need, law enforcement is swiftly addressing these vulnerabilities. We have not conducted an exhaustive review of every sentence that federal courts have already imposed in PPP loan fraud cases as of November 15, 2021. They are accused of using the cash for personal purchases including a Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover. The Vegas High Roller (California July 16), 26. Copyright 2003 - 2023, Small Business Trends LLC. Here's a list of the PPP loan prosecutions to date: 1. Claimed to Have Paid 100 Employees (Florida September 17), 52. Breast Ultrasound Screening Coming Direct to You! All visitors to this Website are informed that Oberheiden P.C. Married Couple Attempting to Flee (Virginia June 24), 17. 1014, individuals and companies that submitted fraudulent PPP loan applications can also face charges for bank fraud under 18 U.S.C. A 2020 Bentley Continental and Cadillac Escalade (New York December 21), 77. Court documents identify 3 confidential human sources, i.e., informants. A small number of fraudulent cases was inevitable given the amazing speed with which the Paycheck Protection Program came into being. Rahul Shah of Evanston is charged with bank fraud and making false statements to a financial institution. Stephen J. Cox, the U.S. Attorney for the Eastern District of Texas, wrote in an op-ed in Texas Lawyer: Rest assured that we will be careful not to discourage legitimate businesses from accessing the important financial resources that Congress made available through the CARES Act. Its going to raise a red flag. He allegedly applied for $441,000 under the Federal Paycheck Protection program. 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. In many cases, this will require more than merely recording the transaction itself. 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. Businesses that have to repay the loan get 2 years to repay if funding was issued before June 5. A $106K Mercedes and a Ford F-250 (Florida October 23), 61. But it may not take that long. 2023 Oberheiden P.C. Goldstein allegedly transferred $355,000 in his personal bank account. Number of Loans Approved. They allegedly filed fake tax documents to support the loan applications. The PPP loan applications reported that each business had between 59 and 69 employees and approximately $295,000 to $342,000 in average monthly payroll expenses. FBI Assistant Director William F. Sweeney Jr said: The benefits offered by the CARES Act for PPP loans were established to help small business owners survive during the pandemic. If you dont know, those are characters from the Game of Thrones TV series. Specifically, if and when Firm cooperates with Local Counsel, Firm will disclose the details to the client in writing for their approval. Hollywood Film Producer (California May 22), 7. Ten people indicted in Metro Atlanta, Houston and D.C.-Maryland area on federal fraud charges for false CARES Act applications. According to the SBA, thePaycheck Protection Program ended on May 31, 2021. What are the Red Flags for PPP Loan Fraud? 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