ppp loan frauds list in georgia

Elijah Majak Buoi, president of Sosuda Tech LLC, is charged with fraudulently applying for over $13 million in PPP aid. A requirement of forgiveness is that borrowers must rehire or retain workers and maintain salary levels. Kindambu made some expensive personal purchases that authorities say were not permissable under the loan terms, including the plane the Lexus. The Cryptocurrency Investor (Texas July 14), 25. Our searchable database allows users to look up dollar allotments by industry, and lenders. Larry Jordan and Sutukh El, two brothers, are charged with fraudulent PPP loan applications to the tune of $7 million, and actually receiving over $600,000. 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). Joseph Cherry II of Virginia was indicted on 10 counts of COVID fraud and faces 10 to 30 years of prison time on each count. Under the CARES Act, companies are only eligible to receive one PPP loan from one lender at a time. These are significant questions, and they are questions that you need to answer sooner rather than later. Five others pleaded guilty in this $3,000,000 ring: Antonio D. Hosey, Timothy Williams, Stanley Dorceus, Kenneth L. Wright, Jr., and Mark A. Stewart. Main Office: Former Catholic Archdiocese Employee (Washington, D.C. August 11), 35. This has caused some entrepreneurs, employers and owners to think twice about applying. Chain Pizza Owner Charged With PPP Fraud (Michigan November 12), 65. 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 pair are charged with submitting 18 fraudulent Paycheck Protection applications with false payroll tax returns, and receiving $1.4 million. Attorneys office, the companies didnt exist or didnt have the employees he claimed. Rocco A. Malanga, owner of a New Jersey small company, was charged with wire and bank fraud for falsifying records to obtain $1.8 million in PPP loans. He allegedly obtained $841,000 in PPP funds for a defunct contracting company with no employees, called True-Cut. To provide the best experiences, we use technologies like cookies to store and/or access device information. Authorities claims Yates used a name generator on the Internet to create names of fake staff. He allegedly received over $1.6 million. While this information may constitute attorney advertising in some jurisdictions, merely reading this information does not create an attorney-client relationship. PLANNED PARENTHOOD MUST BE PROSECUTED FOR TAXPAYER MONEY THEFT! 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. 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. A crucial aspect of the PPP is that companies are only allowed to use the funds they receive for specific authorized purposes. Hayford later pleaded guilty. With that kind of speed, no program could be perfect. Michael Bischoff, the CEO and co-founder of a Michigan chain called Passport Pizza, allegedly falsified documents and employees to obtain $931,000 in PPP money. James McFarland, 56, of Atlanta, Georgia. This federal statute imposes penalties of up to a $1 million fine and 30 years of federal imprisonment for, "knowingly execut [ing], or attempt . He allegedly squandered thousands at strip clubs and nightclubs. We will work tirelessly to protect the integrity of the EIDL and PPP and to help small businesses stay afloat.. Businesses that have to repay the loan get 2 years to repay if funding was issued before June 5. 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 complaint alleges George provided false and misleading documents and apparently couldnt keep his fake employees straight. Despite the fact that the Paycheck Protection Program was launched in March 2020 with the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, federal authorities have already identified several hallmarks of PPP loan fraud. Ultimately Ugarte received funds from Transportation Alliance Bank. Prominent CEO of Hawaii Government Contractor (Hawaii -September 30), 55. John Gaines a/k/a Marty Gaines, 56, of Marietta, 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 the loan obtained by Gaines Reservation and Travel. The total approved was over $525 billion, demonstrating its success. While egregious and clear misuse of PPP loan funds presents a clear risk, expenditures that blend business and personal purposes (i.e. Investigations by the DOJ and U.S. 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. Medical Company Owner (Florida July 10), 23. The U.S. Secret Service and IRS participated in this investigation, along with the U.S. Attorney for the Southern District of Florida. Game of Thrones Inspired These Fake Company Names (North Carolina September 29), 54. Tranesha Quarterman, 33, of Atlanta, Georgia. He has contested the charges. Melvin Stout, his wife Tiffany Acuff and sister Valerie Watson pleaded guilty to making a false statement and obtaining loans through Paycheck Protection Program. However, the alternative of waiting would not have served the country well. Construction Company Owner (Washington D.C. July 13), 24. At Oberheiden P.C., we are actively representing companies with regard to PPP compliance during the coronavirus pandemic, and we are representing companies in PPP loan fraud audits and investigations as well. He will just out of prison. Allegedly he submitted fake IRS 1099 Forms containing worker social security numbers that were invalid. Ricky Dixon, 52, of Warren, Michigan, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, aggravated identity theft, and money laundering in connection with his involvement in the loan obtained by his business, RK Painting Co., and several other businesses loans. One local businesswoman told me she prayed for two weeks before applying because of her fears over confusing requirements. Surely the government does a personal credit check on the owner unless he falsified his identity. The Justice Department is hot on their trail. Keeping it All in the Family (Arkansas December 16), 73. ) or https:// means youve safely connected to the .gov website. 1344) - Along with 18 U.S.C. Teldrin Foster, 39, of Decatur, Georgia, is charged with conspiracy to commit wire fraud in connection with the loan obtained by Bellator Phront Group Inc. Denesseria Slaton, 52, of Stockbridge, Georgia, is charged with conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc. Charmaine Redding, 27, of Macomb, Michigan, is charged with conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc. Another defendant, Carla Jackson, 53, of Tucker, Georgia, was previously charged by indictment on August 4, 2020 with money laundering in connection with laundering the proceeds of Gaines Reservation and Travels PPP loan. 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. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. Two Miami neighbors, Latoya Stanley and Johnny Philus, are charged with getting more than $1 million in Economic Injury Disaster Loan and PPP loan amounts. He allegedly was caught on camera withdrawing cash. 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. With few case-by-case exceptions, Firm's practice is limited to matters and questions of federal law and federal procedure. 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. Ex-Felon Charged With PPP Loan Fraud (Rhode Island September 22), 53. 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. Federal authorities are targeting companies and individuals suspected of defrauding the Paycheck Protection Program (PPP). Share sensitive information only on official, secure websites. After obtaining a second search warrant for the cell phones, USPIS inspectors uncovered hundreds of text messages and photos related to an additional crime, fraudulent EIDL and PPP business loans. The applications stated that each business had between 59 and 69 employees in February 2020 and averaged approximately $295,000 to $342,000 in monthly payroll expenses. (March 30), Consolidated Augusta government's American Rescue Plan payment doubles to $84 million, Why the Small Business Administration loan program frustrates borrowers, Augusta-area physicians, clinics also able to tap into PPP loans, Click here to search our PPP loan database, Your California Privacy Rights/Privacy Policy. 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. Fraudsters like Benjamin Hayford greedily steal money that should be going to Americas small business owners who are struggling during this public health crisis, said U.S. Attorney Trent Shores. 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. This article is updated regularly. Attorneys for the Northern District of Georgia, 10 defendants indicted in multi-state, fraudulent COVID-19 related business loan scheme, Arizona man pleads guilty to extorting Georgia Tech, Georgia woman charged with stealing over $450,000 in government and retirement benefits. How does the government miss a well know con artist? The impact of COVID-19 on small businesses around the country has been devastating, said Acting U.S. Attorney Kurt R. Erskine. 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. 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. So far, six people, including the schemes mastermind, Darrell Thomas, have pleaded guilty. Search our database that is tracking this information. Robert, youre probably right about finding fraud for years to come. A few individuals will be arrested stripped of their material things. Authorities say he went on a personal spending spree with taxpayer money. The Vegas High Roller (California July 16), 26. Postal Inspection Service. The criminal complaint goes on to say Caraballo also received $55,000 in Economic Injury Disaster Loan (EIDL) relief. As part of the court-authorized search, law enforcement seized Quartermans cell phones and discovered a handwritten ledger with the personal and banking information of several individuals. Firm's lawyers are only licensed to practice state law in the states mentioned in their respective biographies. The tool below can be used to search all publicly released PPP recipients in GA. As part of their crimes, the defendants not only submitted false information for the business loans, but for the PPP, they also allegedly created fake Internal Revenue Service documentation to support the applications. Postal Inspectors are committed to aggressively pursuing investigations in which the U.S. Mails are used to facilitate criminal schemes.. 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. A .gov website belongs to an official government organization in the United States. In another case, a married couple was apprehended at JFK Airport allegedly attempting to flee the country after submitting 18 fraudulent PPP loan fraud applications. A pair of Georgia businesses are in hot water over fraud allegations related to their PPP loans. Its bad enough when one person tries to defraud taxpayers. The two allegedly worked together on the scheme (mighty neighborly of them!). Seven Charged in Fraud Ring (South Carolina September 10), 47. All visitors to this Website are informed that Oberheiden P.C. Using an online tool, I discovered that the small medical lab I had worked at for 4 years had, in fact, been approved for a PPP loan end of April. All rights reserved. Here's a list of the PPP loan prosecutions to date: 1. 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