He received $593,590. The two allegedly worked together on the scheme (mighty neighborly of them!). Jesika Blakely, 34, of Atlanta, Georgia, is 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. According to the SBA, thePaycheck Protection Program ended on May 31, 2021. A lock ( Construction Company Owner (Washington D.C. July 13), 24. Applied for PPP Loan While out on Bail (Tennessee November 9), 64. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time and uses a certain percentage of the PPP loan proceeds for payroll expenses. Casey David Crowther was charged with receiving more than $2 million in PPP funds. He claimed to have 400 employees but actually had zero. Katie Quarterman, 28, of Atlanta, Georgia, Nikia Wakefield, 42, of Rockville, Maryland, and. IT Services Company Owner (Massachusetts June 22), 15. Secure .gov websites use HTTPS 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. According to the SBA, the Paycheck Protection Program ended on . According to U.S. Attorney James Kennedy, Mr. 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. If the PPP debt is not forgiven, the interest rate is very low 1%. 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. They are applying for a PPP loan because, the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient; and. Ex-Microsoft Executive (Washington July 23), 28. He was approved for $3.9 million. To speak with one of our senior federal compliance and defense attorneys in confidence, call 888-680-1745 or request a free PPP risk assessment online now. 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 technical storage or access that is used exclusively for anonymous statistical purposes. 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. Dr. Nick Oberheiden, founder of Oberheiden P.C., focuses his litigation practice on white-collar criminal defense, government investigations, SEC & FCPA enforcement, and commercial litigation. He allegedly applied for $441,000 under the Federal Paycheck Protection program. The case was investigated by the FBI and SBA-OIG. According to the SBA, the Paycheck Protection Program ended on May 31, 2021. 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. The impact of COVID-19 on small businesses around the country has been devastating, said Acting U.S. Attorney Kurt R. Erskine. William Sadleir, the ousted head of Aviron Pictures, was charged with wire and bank fraud in connection with a $1.7 million PPP loan. The borrower gets the PPP loan funds into their bank account. One was on behalf of a company called Texas Barbecue and the other called Houston Landscaping. Where: The Bank of America PPP loans class action was filed in a California federal court. Share sensitive information only on official, secure websites. 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. Federal authorities claim they used some of the coronavirus pandemic funds to buy luxury automobiles. Sum of Current Approval Amount. Chain Pizza Owner Charged With PPP Fraud (Michigan November 12), 65. A package containing methamphetamine hidden in dog food containers had been mailed to Quartermans home. McQuarn allegedly used the cash for personal use including buying a 26-foot Pavati Wake Boat and a Rolls Royce. The case was brought in Los Angeles, California. Aditya Raj Sharma, the founder and former CEO of Crosscode Inc., a cloud-based software development company, was charged with misrepresenting facts to get a PPP loan. The allegations claim he submitted a tax return reporting $175,565 income for tax year 2019. All visitors to this Website are informed that Oberheiden P.C. Their alleged greed affects every American taxpayer, and the FBI is making every effort possible to stop it and make sure PPP funds are used as intended., When tragedy strikes and citizens find themselves in a vulnerable situation to no fault of their own, the influx of government assistance unfortunately also attracts criminals, said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. Our mission is to bring you "Small business success delivered daily.". When Williams received the funds, he allegedly tried to launder the money by transferring it to different accounts. Dr. Nick Oberheiden is a nationally recognized expert on PPP loan laws. Surely the government does a personal credit check on the owner unless he falsified his identity. Great Article! Find an attorney to defend youhttps://lawyers.findlaw.com/lawyer/practice/white-collar-crimes 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. On March 27, 2020, Congress passed and President Trump signed into law the Coronavirus Aid, Relief, andEconomic Security(CARES)Act authorizing the low-interest, forgivable loans. He also agreed to forfeit various assets, including more than $2.1 million in seized funds, three luxury vehicles a 2018 Mercedes-Benz S-Class S65AMG, a 2018 Land Rover Range Rover, and a 2017 Acura NSX and several items of jewelry, including a gold Rolex. And the DOJ has made it a priority to root them out. The total approved was over $525 billion, demonstrating its success. Just when you think you cant be any more surprised by PPP fraud . Justice Department announces charges brought against 57 people for PPP fraud, representing $175 million in alleged fraud. Attorneys office, the companies didnt exist or didnt have the employees he claimed. However, this grace period has expired, and now the SBA Office of Inspector General (SBA-OIG), the U.S. Department of Justice (DOJ), and other federal agencies are aggressively targeting companies suspected of engaging in PPP loan fraud. 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. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. Authorities seized the Range Rover, worth about $125,000, jewelry, $120,000 in cash, and $3 million from 10 bank accounts. The FBI apprehended Monica Jaworska and her husband Tarik Jaafar at JFK Airport allegedly attempting to flee to Poland. He also allegedly used the money to pay $50,000 for restitution in a previous fraud case, $40,000 in back child support, $139,000 to lease a Rolls Royce Wraith and $230,000 to associates who helped him run a Ponzi scheme. Bank of America PPP loans class action overview: Who: Three small businesses are suing Bank of America over its management of PPP loans. If so, how do I go about it? Rodericque Thompson allegedly recruited Micah Baisden, Travis Crosby, Keith Maloney, Tabronx Smith, and Thomas Wilson to apply for PPP loans on behalf of their respective business, per law enforcement. Fraudulent Loans List :: PPP Detective Fraudulent Loans List These loans have been flagged by other users as potentially being fraudulent. Also, the EIDL loan application date has been extended through 2021. He allegedly blew through about $200,000 in Las Vegas casinos, where he was caught on surveillance cameras at a Bellagio blackjack table. Besides Alicia Quarterman, 38, of Fayetteville, Georgia, and Katrina Lawson, 41, of Houston, Texas, the following individuals also participated in the scheme and are charged in the indictment: Overall, between July 1, 2020 and August 11, 2020, Quarterman sent Lawson the information for about 48 different individuals, and she allegedly completed approximately 58 fraudulent EIDL applications, seeking $490,000. 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. Woman Achieves Distinction as 50th Defendant Charged with PPP Fraud (Florida September 3), 46. The PPP promissory note you signed will have the terms applicable to you. This table shows the top 5 industries in Georgia by number of loans awarded, with average loan amounts and number of jobs reported. Allegedly he submitted fake IRS 1099 Forms containing worker social security numbers that were invalid. But in this PPP fraudulent case, five individuals from three states are charged with conspiracy to fraudulently get over $4 million and misusing the proceeds. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. Call 888-680-1745 for Central Intake with Dr. Nick Oberheiden Criminal Law & Process, PPP fraud What are the Red Flags for PPP Loan Fraud? ) or https:// means youve safely connected to the .gov website. Nationwide Federal Defense, Compliance and Litigation. Members of the public are reminded that the indictment only contains charges. 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. 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. A former Georgia mayoral candidate in charge of a nonprofit claiming to assist low-income families spent $323,000 in loans she received from the Paycheck Protection Program (PPP) on an in-ground . * * * 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. 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. Of government funds to root them out katie Quarterman, 28, of Atlanta Georgia. To the.gov Website that Oberheiden P.C have 400 employees but actually had.. 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