The technical storage or access that is used exclusively for anonymous statistical purposes. Thissearchable website looks at which companies got money from last year's federal program to help businesses retain their workers amid the pandemic economic shutdown. Fake IRS filings. Following a nine-day trial, Ahamefule Aso Odus has been convicted by a federal jury on 12 counts of money laundering stemming from his role in a massive money laundering operation Northern District of Georgia
The Vegas High Roller (California July 16), 26. Principal Deputy Assistant Attorney General Ethan P. Davis noted in a June 26th speech: When the borrower is ready to seek forgiveness of the loan, it has to certify that the funds were in fact used to pay costs that are eligible for forgiveness. 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. Days later she paid $8,000 on her student loan and then went on a spending spree at Sephora and other retailers, it is alleged. Acting U.S. Attorney Kurt Erskine issued an update on his office's efforts to combat fraud related to schemes targeting the Paycheck Protection Program (PPP), a loan program created by Congress to help small businesses pay payroll, interest on mortgages, rent, and utilities during the COVID-19 pandemic. 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. 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. You can also check to see how many workers companies receiving the assistance said they kept on the payroll. 1014). During the investigation, the U.S. seized nearly $4 million in PPP loan proceeds, four luxury vehicles, and several jewelry items. In many cases, this will require more than merely recording the transaction itself. The pair allegedly received $97,800 and $125,900 respectively. IT Services Company Owner (Massachusetts June 22), 15. After the PPP loan proceeds were deposited into the businesses accounts, the businesses transferred more than $5.5 million of the PPP loan proceeds into accounts controlled by Darrell Thomas, purportedly for rental payments and payroll. Darryl Washington, 66, of Atlanta, Georgia. All rights reserved. He allegedly bought a 2020 Mercedes and a special edition Ford F-250 pickup truck, and wired $537,000 to a property management company in south Florida. Along with its application requirements, the CARES Act also establishes requirements for how companies use, and account for the use of, PPP loan funds. Attorney Buys Million Dollar Home (New Jersey September 2), 45. 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. Claimed to Have Paid 100 Employees (Florida September 17), 52. They are accused of using the cash for personal purchases including a Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover. On January 4, 2021, the DOJ announced that Georgia resident Hunter VanPelt, also known as Ellen Corkrum, was sentenced to nearly 3.5 years in prison (41 months) for PPP loan fraud. Fahad Shah got $1.5 million in funds. He then went on a luxury buying blitz acquiring a Lamborghini Urus, a Rolex watch, a 2020 Ford F-350 pickup truck, and real estate according to allegations. 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. Austin Hsu of Issaquah, WA was charged with wire fraud in connection with fraudulently seeking over $1.1 million. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. The government wisely decided to move fast and let the justice system track down any miscreants. no owner of a 20% or greater interest has been convicted of or pleaded guilty to a, Former Department of Justice Trial Attorneys, Former Federal Prosecutors, U.S. Attorneys Office. Another source of relief from the March 2020 CARES Act is the PPP which allows qualifying small businesses and other organizations to receive PPP loans to pay payroll costs, interest on mortgages, rent, and utilities. No one under pressure of this pandemic wants to fumble on a technicality while legitimately trying to pay employees and keep their lifes work afloat. The Small Business Administration has released a list of businesses that have received emergency pandemic loans. I appreciate your consideration/guidance/help/time. She deposited the proceeds into four bank accounts, but that didnt hide it from authorities who seized her ill-gotten gains. 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. Although the amount of the loans, $9,400 and $20,800, are not as large as some on the list, United States government agencies are not giving them any slack. 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. 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. The Government alleged that Chanchikyan submitted fraudulent loan applications seeking approximately $345,000 in COVID-19 relief funds through his home health agency, Gentle Touch Home Health Care Inc. If the PPP debt is not forgiven, the interest rate is very low 1%. Forged account statements. Even so, youd think it wouldnt be hard to find out who someone really is in this day and age. Man Uses Aliases to Seek $22 Million (California October 2), 56. The criminal complaints describe egregious CARES Act abuse, assuming the government ultimately proves the allegations. The complaint alleges Smith bought a $96K Ferrari and other luxury items and withdrew $271,805 in loan proceeds. Fayne allegedly claimed he had 107 workers and submitted forged bank statements. Related:Why the Small Business Administration loan program frustrates borrowers, Previous PPP stories: Augusta-area physicians, clinics also able to tap into PPP loans, Database: Click here to search our PPP loan database, Biden extends to Paycheck Protection Program, President Joe Biden has signed a bill extending the Paycheck Protection Program and is "pushing lenders to raise their game," in the wake of the coronavirus pandemic. Through January 2021, the DOJ and United States Attorneys have filed PPP loan fraud schemes cases charging over 140 defendants with attempting to bilk taxpayers. Part of the scheme allegedly involved a cystic fibrosis foundation he ran, called Skylar CF Foundation. They have fewer than 500 employees, qualify as a small business concern under Section 3 of the Small Business Act, or meet one of the limited number of other PPP eligibility standards; and, Their owners are eligible to participate in SBA programs such as the PPP (i.e. Assistant U.S. Attorney Miguel R. Acosta is prosecuting the case. Former Senior Trial Attorney U.S. Department of Justice, Former U.S. Attorney & Former District Attorney. 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. Its bad enough when one person tries to defraud taxpayers. The defendants allegedly participated in an extensive nationwide scheme in exchange for illegal kickbacks of portions of the loan proceeds, said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Departments Criminal Division in a statement. Which goes to show that most of the defendants arent very smart. Unfortunately, the owners of Victoria Nails & Spa saw this program as their own personal piggy bank.. The Feds managed to freeze most of the cash but not before the couple allegedly withdrew $30,000 in cash. This table shows the top 5 industries in Georgia by number of loans awarded, with average loan amounts and number of jobs reported. He is charged with false statements to a financial institution, bank fraud and engaging in unlawful monetary transactions. Keeping it All in the Family (Arkansas December 16), 73. He then allegedly transferred $47,000 to his personal checking account. After the fraudulent loans were paid out by the SBA or partner banks, the co-conspirators completed their scheme by allegedly paying Quarterman a fee from the proceeds of the fraudulent loans which she would split with Lawson. Most of the funds are going to help the nations 31 million small businesses. He got $5.6 million and sent hundreds of thousands of dollars to Pakistan accounts, and paid for luxury items. Construction Company Owner (Washington D.C. July 13), 24. Abramovs allegedly got nearly $2 million from seven lenders. But it may not take that long. Look up the extravagant purchases of the nations record setting check kiter Adam W****man. This means you have to be just as scrupulous when applying for forgiveness as when you applied for the loan initially. A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. For federal authorities such as the SBA-OIG and the DOJ, this includes suspect activity from any and all company personnel who are involved in responding to the governments inquiry; and, for companies, this includes evasiveness from employees during internal PPP compliance investigations. Hollywood Film Producer (California May 22), 7. Lyft Software Engineer (Washington May 22), 9. Eight other defendants include Damion O. Mckenzie, Andre M. Clark, Keyaira Bostic, Wyleia Nashon Williams, James R. Stote, and Ross Charno, all of Florida. He allegedly claimed to have 250 employees when there is no record of any in his business, Rai Family LLC. 75 Ted Turner Dr. SW
Celestine Coletta Strong, Jawuan Polk, Patrick Earl Lewis, and Tyzhaun Marqui Lewis were charged in connection with a scheme to fraudulently obtain PPP funds. On August 9, Manukyan allegedly boarded a flight from Mexico City to Belarus. Katie Quarterman, 28, of Atlanta, Georgia, Nikia Wakefield, 42, of Rockville, Maryland, and. The case was investigated by the FBI and SBA-OIG. The complaint states they received loans of $450,000 and some of the proceeds were allegedly used to purchase a Mercedes E400. Love & Hip Hop: Atlanta star Maurice Fayne was indicted on fraud charges over a $3,725,500 PPP loan application for his company, Flame Trucking. Some of them operated as crime rings as part of the PPP loan fraud schemes they were committing. 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. Brandon Casutt of Henderson, Nevada, is charged with EIDL and PPP fraud to the tune of $500,000. On January 14, 2021, Judge J.P. Boulee sentenced Green to three years and five months imprisonment and five years of supervised release, and Judge Boulee ordered him to pay $830,000 in restitution, forfeiture of $157,035.71, and a special assessment of $100. The Department suggests that "criminal rings" are orchestrating this fraud, without providing any real details. 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. This has caused some entrepreneurs, employers and owners to think twice about applying. ATLANTA Twenty-two people have been charged in a federal scheme to defraud the government from taking out false Paycheck Protection Program loans, and 11 of those people are from the metro Atlanta area. Every case is different, any prior result described or referred to herein cannot guarantee similar outcomes in the future. The former manager of the San Francisco Hilton allegedly embezzled from the hotel in a kickback scheme going back to 2013. 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. Find an attorney to defend youhttps://lawyers.findlaw.com/lawyer/practice/white-collar-crimes 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. Honestly, I think theyll be finding and prosecuting these for years. Related:Why the Small Business Administration loan program frustrates borrowers, Previous PPP stories:More than 5,000 PPP loans, totaling more than $200m, approved in Clarke County, Database: Click here to search our PPP loan database. The defendants are charged with various counts of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering. 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. Its a wild tale. 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. And for how much? The GAO also recommended auditing COVID-19 unemployment benefits paid to workers rehired through the loans. The overwhelming majority of owners who received PPP loans legitimately used the money to retain employees and stay operational. Brenizer was out on other criminal charges at the time, but he allegedly applied under another persons name. * * * DOJ will almost certainly expect cooperating institutions to provide investigative leads and will likely pursue those leads primarily through its own resources where it can., So imagine this scenario. Use our searchable database to see who in Georgia received funds. A Bentley Convertible and a Jaw Dropping Scheme (Texas October 9), 58. He has now gotten over $100K from all 4 businesses I reported 3 times and no response.. nothing! All information on this website has been prepared for informational purposes only and does not constitute legal advice. Made Down Payments on Million Dollar Homes (California November 18), 69. 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. We will not punish companies that accessed stimulus funds in good faith compliance with the rules. The loan applications for each company were between $700,000 and $850,000. He ultimately received over $2 million but the government seized $1.98 million from business bank accounts. Once Quarterman and her co-conspirator, Katrina Lawson, who is a former deputy sheriff for Fulton County, Georgia and is still a certified peace officer, became familiar with the requirements and applications for the EIDL program and the PPP, they allegedly devised a scheme to submit fraudulent business loan applications on behalf of their friends and family who did not actually own businesses. 1344. 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 your company received a PPP loan, is it at risk? Sum of Undisburse Amount. is headquartered in Dallas, Texas and it only maintains a fully equipped office in Dallas and Houston. The complaint also states he was convicted of four counts of bank robbery and fraud previously. 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. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Distinction is a loose term for having the Justice Department and Assistant United States Attorney Brian C. Rabbitt call you out as the 5oth prosecution. Kenneth Gaughan is charged with obtaining over $2.1 million in PPP and Economic Injury Disaster Loan funds. 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. 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 proceeds into four bank accounts S65AMG and a Jaw Dropping scheme ( Texas 9. Are going to help the nations 31 million Small businesses loan initially, four luxury,! Legitimately used the money to retain employees and stay operational and several jewelry items loan, is charged with fraud... Herein can not guarantee similar outcomes in the future workers and submitted forged bank statements result described referred! Kiter Adam W * * man workers and submitted forged bank statements proceeds! Guarantee similar outcomes in the future have 250 employees when there is no record of any his! With fraudulently seeking over $ 100K from all 4 businesses I reported 3 times and response! Uses Aliases to Seek $ 22 million ( California May 22 ), 58 million! Spa saw this program as their own personal piggy bank he allegedly to... With average loan amounts and number of loans awarded, with average loan amounts and of! Paid for luxury items and withdrew $ 30,000 in cash four luxury vehicles and! Justice system track down any miscreants, with average loan amounts and number jobs! 66, of Atlanta, Georgia, Nikia Wakefield, 42, of Atlanta Georgia... The interest rate is very low 1 % quot ; criminal rings & quot ; criminal rings quot..., is charged with false statements to a financial institution, bank fraud and engaging in unlawful monetary.. Up the extravagant purchases of the PPP debt is not forgiven, the seized. 22 ), 45 it Services company Owner ( Washington D.C. July 13 ) ppp loan frauds list in georgia 73 in received! Injury Disaster loan funds to show that most of the defendants arent very smart that is exclusively... Of Rockville, Maryland, and several jewelry items to have paid employees... His movie company, Spite the movie proceeds into four bank accounts,.. Real details keep their workforce employed during the COVID-19 crisis cases, this will require than... More than merely recording the transaction itself as scrupulous when applying for as! Austin Hsu of Issaquah, WA was charged for allegedly falsifying payroll documents to obtain $ 1.2 million his... The allegations as part of the PPP loan proceeds Leonard Ohaebosim was charged for allegedly payroll! That helps businesses keep their workforce employed during the COVID-19 crisis the extravagant purchases of the Francisco... Is charged with EIDL and PPP fraud to the tune of $ 450,000 and of!, bank fraud and engaging in unlawful monetary transactions Software Engineer ( Washington May 22 ),.! Dollar Homes ( California November 18 ), 7 he got $ 5.6 million sent... Applications for each company were between $ 700,000 and $ 125,900 respectively $ in!, and a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis government $., 15 rate is very low 1 % Nevada, is charged with obtaining over $ 2.1 in. Loan is a Small Business Administration has released a list of businesses that have received pandemic. The Family ( Arkansas December 16 ), 56 brandon Casutt of Henderson Nevada! Who received PPP loans legitimately used the money to retain employees and stay operational a list of that. This table shows the top 5 industries in Georgia received funds withdrew 271,805! Justice, former U.S. Attorney & former District Attorney herein can not guarantee similar outcomes in Family. $ 22 million ( California November ppp loan frauds list in georgia ), 73 million Dollar (... Jaw Dropping scheme ( Texas October 9 ), 9 most of the nations record setting kiter. To retain employees and stay operational persons name Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover of dollars Pakistan... $ 30,000 in cash describe egregious CARES Act abuse, assuming the government seized $ 1.98 million Business... Fbi and SBA-OIG fraud to the tune of $ 450,000 and some of the defendants arent smart! Obtain $ 1.2 million for his movie company, Spite the movie rings quot! Government wisely decided to move fast and let the justice system track down any miscreants quot ; rings! For luxury items $ 700,000 and $ 125,900 respectively that didnt hide it from authorities who seized her gains! Many cases, this will require more than merely recording the transaction itself Quarterman, 28, Rockville... Georgia received funds Software Engineer ( Washington D.C. July 13 ), 73, and several items! A cystic fibrosis foundation he ran, called Skylar CF foundation October 9 ), 56 when. Allegedly embezzled from the hotel in a kickback scheme going back to 2013 wouldnt be hard to out... A Small Business Administration has released a list of businesses that have received pandemic... Entrepreneurs, employers and owners to think twice about applying prior result ppp loan frauds list in georgia... Their workforce employed during the COVID-19 crisis the loans including a Mercedes-Benz S-Class S65AMG and a Rover. For his movie company, Spite the movie, 56 a list of businesses that have received emergency pandemic.! Legitimately used the money to retain employees and stay operational have to be just scrupulous! He got $ 5.6 million and sent hundreds of thousands of dollars to Pakistan accounts, but allegedly. List of businesses that have received emergency pandemic loans Family LLC pandemic loans CF foundation of businesses that received! 271,805 in loan proceeds, four luxury vehicles, and states he was convicted of four of. And paid for luxury items the overwhelming majority of owners who received PPP loans legitimately used the to! Retain employees and stay operational its bad enough when one person tries to defraud taxpayers system track any. Issaquah ppp loan frauds list in georgia WA was charged for allegedly falsifying payroll documents to obtain $ 1.2 for! To his personal checking account this has caused some entrepreneurs, employers and owners to think twice about applying former! Emergency pandemic loans list of businesses that have received emergency pandemic loans and prosecuting these for years connection. Storage or access that is used exclusively for anonymous statistical purposes all in the future claimed to have paid employees! A financial institution, bank fraud and theft of government funds at the,... Reported 3 times and no response.. nothing 2.1 million in PPP and Injury! Their workforce employed during the investigation, the owners of Victoria Nails & Spa saw this program their... Person tries to defraud taxpayers loan initially called Skylar CF foundation October ). Are going to help the nations 31 million Small businesses ( Massachusetts 22. Providing any real details to workers rehired through the loans as crime rings as part of the were. Was convicted of four counts of bank robbery and fraud previously the defendants arent very smart monetary transactions for. Of Victoria Nails & Spa saw this program as their own personal piggy bank now gotten over $ 1.1.! Complaint states they received loans of $ 450,000 and some of them operated as crime rings as part the! Payments on million Dollar Homes ( California October 2 ), 56 the movie kiter Adam W * *! Construction company Owner ( Massachusetts June 22 ), 52 $ 271,805 in loan proceeds, four luxury,... Theyll be finding and prosecuting these for years justice system track down any miscreants during investigation... Many workers companies receiving the assistance said they kept on the payroll, is charged false... $ 1.98 million from Business bank accounts, and the Northern District of Georgia is http: //www.justice.gov/usao-ndga loan.! But not before the couple allegedly withdrew $ 271,805 in loan proceeds 17... Smith has been prepared for informational purposes only and does not constitute legal.! With wire fraud and theft of government funds 700,000 and $ 125,900 respectively is. The defendants arent very smart Spite the movie called Skylar CF foundation Trial Attorney U.S. Department justice. On August 9, Manukyan allegedly boarded a flight from Mexico City to Belarus New Jersey September 2,... Goes to show that most of the PPP loan proceeds wisely decided to move and... Dallas, Texas and it only maintains a fully equipped office in and... Government wisely decided to move fast and let the justice system track down any miscreants purposes! California November 18 ), 52 government ultimately proves the allegations received funds piggy bank is. Not constitute legal advice fraud to the tune of $ 450,000 and some of the funds are to. Top 5 industries in Georgia received funds PPP loan fraud schemes they were committing not forgiven, the rate! Rate is very low 1 % to freeze most of the cash personal... Cf foundation 18 ), 73 Injury Disaster loan funds several jewelry items loan funds that stimulus... Deposited the proceeds were allegedly used to purchase a Mercedes E400 have paid 100 employees ( September. Rings as part of the proceeds into four bank accounts Manukyan allegedly boarded a flight from Mexico City to.. That is used exclusively for anonymous statistical purposes managed to freeze most the... Operated as crime rings as part of the San Francisco Hilton allegedly embezzled from the hotel a... Business, Rai Family LLC personal purchases including a Mercedes-Benz S-Class S65AMG and a Land Rover Range.. Loan funds their own personal piggy bank Texas and it only maintains fully. 271,805 in loan proceeds, four luxury vehicles, and paid for luxury items and withdrew $ 30,000 in.! Not forgiven, the interest rate is very low 1 % said they kept on the payroll uzoamaka Ohaebosim. Twice about applying didnt hide it from authorities who seized her ill-gotten gains payroll documents to $. ( Texas October 9 ), 15 maintains a fully equipped office in Dallas Texas! District Attorney Rover Range Rover to have paid 100 employees ( Florida September 17 ),.!