Deon Petty was charged with one count to defraud the United States. Chandra Norton was charged with one count of conspiracy to commit fraud. The case was brought in Atlanta, Georgia. Joseph Cherry was charged with wire fraud, theft of government property, making false statements to influence the SBA, and money laundering. On June 21, 2021, Arman Hayrapetyan pleaded guilty to one count of money laundering conspiracy. The case was brought in Brooklyn, New York. 4. Ms. Jaworska pleaded guilty to one count of conspiracy to commit bank fraud. Ms. Misseldine has not been indicted at this time and the case is currently pending. The Government alleged that Mr. Fitzgerald provided false statements about receiving loan for COVID-19 relief plans for New Beginning Family Service LLC. Brandon Lewis was charged with two counts of wire fraud and one count of making false statements. This case was brought in Richmond, Virginia. Joshua Bellamy was charged with conspiracy to commit wire fraud and bank fraud, wire fraud, and bank fraud. Timothy Williams was charged with conspiracy to defraud the United States. The Government alleged Edwards and Richardson submitted fraudulent loan applications obtaining over $2 million in COVID-19 relief funds. This case was brought in Milwaukee, Wisconsin. Shanrika Duhart was charged with conspiracy to defraud the United States. Her sentencing is scheduled for January 12, 2022. The case was brought in Cleveland, Ohio. . PPP loans and fraud - the red flags that could have been spotted Amanda DuPont September 09, 2021 6 min Approximately $800 billion went out in the CARES Act's Paycheck Protection Program (PPP), providing nearly 12 million loans between April 2020 and May 2021 to U.S. businesses. The Government alleged that the two businessmen submitted fraudulent loan applications seeking over $500,000. The case was brought in Atlanta, Georgia. The Government alleged that Mr. Sissoko submitted fraudulent loan applications to obtain over $7.25 million in COVID-19 relief funds, which he then allegedly misappropriated on personal expenses. On June 9, 2021, Mr. Bellamy pleaded guilty to one count of conspiracy to commit wire fraud. On July 13, 2021, Ms. Walker was sentenced to 12 months and 1 day in prison. Romean Brown, Tyrek Clarke, Kenneth Desir, Stephan Dorminvil, Kai Heyward, Keith James, Christopher Jean-Pierre, Oneal Marks, Jahriah Olivierre, Roleeke Smith, and Christopher Topey were charged with conspiracy to commit access device fraud and aggravated identity theft. Contact: newsroom@ci.irs.gov. On June 17, 2021, Mr. Argires pleaded guilty to one count of money laundering. The case was brought in Miami, Florida. Mr. Augustin pleaded guilty to one count of conspiracy to commit wire fraud on December 27, 2021. Mr. Kanyike has pleaded guilty. All the other defendants have pleaded not guilty, and their cases are pending. On January 31, 2022, Ms. Ford-Victory pleaded guilty to one count of wire fraud conspiracy. reports related to PPP loans with the Financial Crimes Enforcement Network. Mr. Augustin pleaded guilty was sentenced to 78 months in prison on May 6, 2022. Two Men, Identity Theft and a Conspiracy (Rhode Island - May 5, 2020) . The case was brought in Atlanta, Georgia. The Government alleged that Mr. Stewart submitted fraudulent loan applications and obtained over $250,000 in COVID-19 relief funds and that he was engaged in two other, separate fraudulent schemes to obtain government contracts and military benefits. Tiara Walker was charged with conspiracy to commit wire fraud and bank fraud, wire fraud, and bank fraud. The case was brought in Miami, Florida. Ms. Norton pleaded guilty on November 12, 2020, and she is scheduled to be sentenced on November 10, 2022. Juliana Martins was charged with false statements and theft of government money. E! The Government alleged that Mr. Cherry submitted fraudulent loan applications and obtained $190,000 in COVID-19 relief funds. Kenneth Gaughan was charged with bank fraud, theft of government funds, identity fraud, wire fraud, and money laundering. On December 14, 2021, Tranesha Quarterman pleaded guilty, and was sentenced to 17 months in prison on May 12, 2022. On June 24, 2021, Ms. Benton pleaded guilty to mail fraud. Mr. Lewis was sentenced to 22 months in prison on June 29, 2022. On September 29, 2021, Charles Hill pleaded guilty to conspiracy to commit wire fraud, and he was sentenced to probation for 5 years, with the first 27 months to be served on home detention on January 12, 2022. It is alleged that the scheme between Ms. Ortiz and her co-conspirator has affected at least 23 victims. Woods and Gilchrist are both licensed attorneys. An increasing number of fraud schemes have come to light involving loans issued through . Tarone La Dale Woods was charged with false statements. Mr. Nicoloff pleaded guilty and was sentenced to 30 months in prison on May 9, 2022. The Government alleged that Mr. Carter, a police officer in Coral Springs, submitted a fraudulent loan application seeking almost $300,000 in COVID-19 relief funds. We also help our clients gain access to seized or frozen accounts by working with banks, and government agents to release money that rightfully belongs to our clients. Zhang pleaded guilty and was sentenced to 60 days in prison on May 7, 2021. The PPP allows the interest and principal to be forgiven if businesses spend the . Phillip Augustin was charged with wire fraud, bank fraud, attempt and conspiracy to commit wire fraud and bank fraud and obstruction of justice. On November 17, 2021, Mr. VanScoyk was sentenced to 10 months in prison. Denesseria Slaton was charged separately and has pleaded guilty to one count of conspiracy to commit fraud. The Government alleged that Mr. Pierre submitted fraudulent loan applications seeking $414,000 in COVID-19 relief funds. The Government alleged that Makki filed ten fraudulent loan applications seeking over $1.08 million in COVID-19 relief funds and transferred the funds to purchase a condo in Lebanon. Deon Levy and Abdul-Azeem Levy were charged with wire fraud and conspiracy to commit wire fraud. The Government alleged that Ms. Ortiz fraudulently obtained Social Security benefits and COVID-19 unemployment benefits with an individual she met through an online dating site. On November 9, 2021, Mr. Reuth pleaded guilty to one count of conspiracy to commit wire fraud, and he is scheduled for sentencing on December 12, 2022. Mukund Mohan was charged with several counts each of wire fraud and money laundering. Mr. Jordan and Mr. El have pleaded not guilty, and their cases are pending. The Government alleged that Dr. Shibley submitted fraudulent loan applications seeking over $3 million in COVID-19 relief funds. A Florida man was sentenced today to 33 months in prison for fraudulently seeking over $7,263,564 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Problem: This couple used fraudulently obtained PPP and EIDL funds to pad and flaunt a luxury lifestyle. The Government filed a criminal complaint on October 11, 2021. The Government alleged that Garibyan filed fraudulent loan applications seeking over $57,000 in COVID-19 relief funds for his home health agency, GMA Home Health, Inc., which was never operational during the pandemic. Moon submitted fraudulent loan applications on behalf of sixteen businesses seeking over $2 million in COVID-19 relief funds. The PPP (Paycheck Protection Program) is an emergency disaster loan program administered by the SBA designed to provide funds to small businesses with under 500 employees who were affected by the 2020 Coronavirus epidemic. On May 14, 2021, Mr. Clark pleaded guilty to one count of conspiracy to commit wire fraud. Mr. Tolliver pleaded not guilty at his arraignment in November 2021 and his trial is currently scheduled for December 19, 2022. The case was brought in Charlotte, North Carolina. Ms. Durhart was sentenced to 96 months in prison on June 23, 2022. IR-2021-65, March 25, 2021 The Internal Revenue Service's Criminal Investigation Division (IRS-CI) marks the one-year anniversary of the Coronavirus Aid, . Here's a list of the PPP loan prosecutions to date: 1. The case was brought in Beaumont, Texas. The case was brought in Portland, Oregon. On October 18, 2021, he was sentenced to 10 months probation. The Government alleged that Ms. Abbas submitted fraudulent loan applications and obtained over $37,000 in COVID-19 relief funds to care for individuals with cases of COVID-19. Christopher Licata was charged with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United Sates, and several other charges. This case was brought in Greenville, South Carolina. It is also alleged that all defendants are members or associates of the Woo Gang, which is based in Brooklyn. The Government alleged that Mr. Frazier submitted fraudulent loan applications seeking $6.9 million in COVID-19 relief funds, of which he received approximately $2.2 million. On June 28, 2021, after a 9-day jury trial, Richard Ayvazyan, Marietta Terabelian, and Artur Ayvazyan were found guilty. She was sentenced to 12 months and 1 day. The Government alleged that Mr. Hayford submitted fraudulent loan applications seeking $8 million in COVID-19 relief funds. Mr. Doss pleaded guilty on June 27, 2022, and is scheduled to be sentenced on October 27, 2022. Vinath Oudomsine was charged with one count of wire fraud. Rodericque Thompson, Micah Baisden, Travis Crosby, Keith Maloney, Tabronx Smith, and Thomas Wilson were charged with attempt and conspiracy to commit fraud, bank fraud, making false statements to a financial institution, and money laundering. The case was brought in Detroit, Michigan. The Government alleged that Mr. Jaafar submitted fraudulent loan applications seeking $6 million in COVID-19 relief funds. The Government alleged that Ms. Bain submitted fraudulent loan applications for her company Microblading Brow Studio obtaining approximately $17.6 million in COVID-19 relief funds. Small Business Administration (SBA) released a list of all the businesses their loan amount with Bank and business details. Curtis and Dereen Porch were charged with three counts of wire fraud and one count of theft of government property. Our federal defense lawyers are representing companies nationwide in PPP loan fraud audits and investigations during the COVID-19 crisis. Ms. Williams was sentenced to time served with 6 months home confinement on May 25, 2022. On May 20, 2021, Mr. Suber was sentenced to 24 months in prison. On September 14, 2021, Mr. Goldstein was sentenced to 12 months and 1 day in prison. Mack Devon Knight was charged with two counts of wire fraud, one count of making a false statement, one count of making a false statement on a loan application, and one count of money laundering. Mr. Tezna was sentenced to 18 months in prison. The case was brought in Atlanta, Georgia. Paul and Michelle Kwak were charged with conspiracy to commit wire fraud, wire fraud, and money laundering. On March 11, 2021, Bern Benoit pleaded guilty to one count of conspiracy to commit bank and wire fraud. Mr. Crowther went to trial and was found guilty on five counts, including bank fraud, making false statements on a loan application, and money laundering. The Government alleged that Mr. Bischoff, who owned multiple pizza restaurants, submitted fraudulent loan applications seeking to obtain almost $1 million in COVID-19 relief funds. After a 7-week trial, Mr. Markovich was convicted of all charges. Nicholas Jones was charged with wire fraud and falsification of records. Woods pleaded guilty and was sentenced to 6 months in prison on July 15, 2021. He was sentenced to 78 months in prison on March 30, 2022. The case was brought in Sherman, Texas. Mr. McBreairty pleaded guilty and was sentenced to 2 years of probation, with the first 6 months to be served on home confinement. This case was brought in Greenville, South Carolina. The case was brought in Milwaukee, Wisconsin. Jones pleaded guilty on June 1, 2022 and is scheduled to be sentenced on September 27, 2022. Mr. Davis pleaded guilty on May 26, 2022, and is scheduled for sentencing on August 19, 2022. Recent reports have found that FinTechs and their bank partners handled 75 percent of the approved PPP loans that have been connected to fraud by DOJ, despite facilitating just 15 percent of PPP loans overall. Mr. Casutt pleaded not guilty and is scheduled for trial on October 17, 2022. Journalists: Thank you for using this database. Mr. Lewis is scheduled for sentencing on July 27, 2022. The Government alleged that Mr. Kralievits submitted fraudulent loan applications seeking approximately $767,000 in COVID-19 relief funds. The Government alleged that Mr. Sah submitted several fraudulent loan applications seeking approximately $24.8 million in COVID-19 relief funds. The U.S. Small Business Administration's watchdog has been asked to investigate Potomac Radio, owner of WCRW, after receiving more than $100,000 through the Paycheck Protection Program (PPP). Leonel Rivero was charged with wire fraud. William Sadleir was charged in two caseshe was charged with wire fraud, making false statements to a bank, bank fraud, and money laundering in the Central District of California on July 17, 2020. The Government alleged that that Ms. Williams submitted fraudulent loan applications seeking $137,500 in COVID-19 relief funds. The case was brought in San Francisco, California. Mr. Smith pleaded guilty to one count of bank fraud. Ms. Duhart pled guilty and was sentenced to 3 years in prison on February 22, 2022. On October 21, 2021, Mr. Argires was sentenced to 8 months in prison. The Government alleged that Mr. Etwaru submitted fraudulent loan applications to obtain approximately $57,750.00 in COVID-19 relief funds. His trial is set for October 3, 2022. The case was brought in Dayton, Ohio. This case was brought in Cleveland, Ohio. Richard Ayvazyan, Marietta Terabelian, Artur Ayvazyan, Tamara Dadyan, Manuk Grigoryan, Arman Hayrapetyan, Edvard Paronyan, and Vahe Dadyan were charged with conspiracy to commit bank and wire fraud, wire fraud, bank fraud, conspiracy to commit money laundering, money laundering, and other charges. Their trial is currently scheduled for September 2, 2022. Ms. Jackson pleaded guilty to both counts. The Government alleged that Mr. Benlevi submitted 27 fraudulent loan applications seeking $27 million in COVID-19 relief funds. The case was brought in Ft. Lauderdale, Florida. On December 3, 2020, Mr. Fiedler pleaded guilty to conspiracy to commit wire fraud. Ms. McConnell pleaded guilty to the charges on September 7, 2021. Mr. Fouzi Darakhshan was charged with conspiracy to commit offenses against the United States, and several counts of false statements on loan applications. Eric Shibley was charged with wire fraud, bank fraud, and money laundering. Mr. McCants pleaded guilty on June 6, 2022 and is scheduled for sentencing on September 9, 2022. Acknowledging PPP loan applicants' compliance burdens (and the limited information that was initially made available to applicants), the U.S. Small Business Administration ( SBA) offered a grace period within which companies could return improperly obtained PPP loans without penalty. The case was brought in Brooklyn, New York.