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. Fahad Shah got $1.5 million in funds. All visitors to this Website are informed that Oberheiden P.C. Have a question about Government Services? 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. Fugitive defendant who fled during trial convicted by federal jury for laundering millions of dollars stolen from fraud victims throughout the U.S. 10 Defendants Indicted In Multi State, Fraudulent COVID 19 Related Business Loan Scheme. 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. This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General. NFL Player Blows 62 Grand at the Hard Rock Casino (Florida September 10), 49. Its a scary thing for legitimate business owners to sign borrower certifications under potential penalties of fines and prison time. 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 (Shutterstock) ATLANTA Federal fraud charges were filed against. Rahul Shah of Evanston is charged with bank fraud and making false statements to a financial institution. I was put on furlough for almost 2 months from mid April to end of June. Las Vegas Man Hits 7 Different Lenders (Nevada January 28, 2021), 79. The case was brought in Los Angeles, California. Defunct Chicago Restaurateur (Illinois August 28), 42. Medical Company Owner (Florida July 10), 23. A locked padlock Postal Inspectors are committed to aggressively pursuing investigations in which the U.S. Mails are used to facilitate criminal schemes.. Why: The plaintiffs say the bank misled small business owners into taking out pandemic-era Paycheck Protection Program loans that would not be forgiven by the government. 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. Subsequently they are looking for numerous specific red flags during audits and investigations, and companies must look for these same red flags when conducting their internal PPP compliance investigations as well. Walmart Project Manager (Oklahoma June 4), 10. Another report by the SBA OIG found tens of thousands of examples of companies that received PPP loans ineligibly. To support these payroll figures, each businesss loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report payroll taxes, for each quarter of 2019 and by a bank statement or a spreadsheet reflecting payroll expenses. 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. I appreciate your consideration/guidance/help/time. Main Office: Every case is different, any prior result described or referred to herein cannot guarantee similar outcomes in the future. Casey David Crowther was charged with receiving more than $2 million in PPP funds. You can also check to see how many workers companies receiving the assistance said they kept on the payroll. When seeking forgiveness, companies are required to provide documentation, and they must affirmatively certify as to the accuracy of this documentation and as to compliance itself. Evasiveness and inability (or unwillingness) to produce documentation of PPP compliance is a major red flag for fraud as well. However, none of the businesses had any legitimate business with any of the businesses or accounts to which they sent the proceeds. Below are some red flags that could trigger an investigation. Search our database that is tracking this information. To provide the best experiences, we use technologies like cookies to store and/or access device information. 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. Charged were: Darrell Thomas, Andre Lee Gaines and Carla Jackson of Georgia; Kahlil Gibran Green Sr. of Ohio; and Bern Benoit of California. Kyle William Brenizer of St. Paul is charged with wire fraud and money laundering. ATLANTA Federal fraud charges were filed against 10 people, including six Metro Atlanta residents, who stole more than $700,000 in COVID-19-related government aid, prosecutors said. 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. Part of the scheme allegedly involved a cystic fibrosis foundation he ran, called Skylar CF Foundation. Seven Charged in Fraud Ring (South Carolina September 10), 47. [SIGN UP: WSB-TV Daily Headlines Newsletter]. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justices National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Also, the EIDL loan application date has been extended through 2021. 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. So youre really that miserable that you would call and report someone ? Secure .gov websites use HTTPS Forged account statements. The maximum that one person can get for a PPP loan is $20,833. Its alleged he then blew the money on a Rolex Presidential watch, a 5.73 carat diamond ring and other jewelry. Izzat and Tarik Freitekh, a father-son duo, were charged with lying and forging IRS records to obtain $1.7 million in PPP funds for three different businesses. To this end, all companies that received PPP loans would be well-advised to proactively conduct an internal PPP compliance investigation. He received $593,590. Fake Sewing Company Owner Fled Country (Los Angeles August 11), 36. Firm's lawyers are only licensed to practice state law in the states mentioned in their respective biographies. Keeping it All in the Family (Arkansas December 16), 73. It is free MONEY no one will repay one single dollar. Adarin Jones, a/k/a Adrian Jones, 42, of Atlanta, Georgia. Again, thorough documentation is imperative, and companies must ensure that all relevant internal personnel are clear about the types of activities that can increase the companys risk of liability in the event of a PPP loan fraud audit or investigation. The Justice Department is hot on their trail. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. Didier Kindambu is facing charges that he falsified payroll documentation to $2.5 million. Justice Department announces charges brought against 57 people for PPP fraud, representing $175 million in alleged fraud. Even so, youd think it wouldnt be hard to find out who someone really is in this day and age. 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 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. He allegedly submitted applications on behalf of a business that did not exist and for businesses he did not own. Along with Lawson and Quarterman, the federal indictment includes: Charges against the named co-conspirators include various counts of bank fraud, mail fraud, wire fraud, conspiracy to commit wire fraud, and money laundering for a total of approximately $714,000, prosecutors said. Postal Inspection Services and the Drug Enforcement Administration of methamphetamine hidden in dog food and shipped to one of the defendants led to the discovery of details of people in Houston, the Washington, D.C.-Metro area, and Metro Atlanta involved in a scheme to defraud the government of money through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Instead, the businesses used the funds for various personal expenses. Oberheiden P.C. A requirement of forgiveness is that borrowers must rehire or retain workers and maintain salary levels. 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. A 2020 Bentley Continental and Cadillac Escalade (New York December 21), 77. Owners of Chain of Nail Salons (New York December 10), 71. 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. Abramovs allegedly got nearly $2 million from seven lenders. 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. William Sadleir, the ousted head of Aviron Pictures, was charged with wire and bank fraud in connection with a $1.7 million PPP loan. 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. 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. bank fraud, making false statements to an FDIC-insured financial institution, or making false statements to the SBA). A PPP loan is a Small Business Authority-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. However, we have created a list of PPP resources that should help you with any challenges that you might have. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. Quarterman would recruit co-conspirators who would send her their personal and banking information mostly via text message, and then Quarterman would send that information to Lawson who would submit the applications to the SBA. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. 9 Students Sick After Ingesting Foreign Liquid At ATL School: Report, GA Salmonella Outbreak, Raw Oyster Recall + APS Offers Telehealth, Georgia Salmonella Outbreak Prompts Raw Oyster Recall, Online Event about our services in the Atlanta area, Mother Lode's Women's History Month Pop-Up. Woman Achieves Distinction as 50th Defendant Charged with PPP Fraud (Florida September 3), 46. The defendants are charged with using fake and stolen identifies to apply for 35 CARES Act loans. 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. Report fraud/thefthttps://www.sba.gov/funding-programs/loans/covid-19-relief-options/report-id-theft-fraud 2023 Cox Media Group. But the program attracted a few rotten apples that committed PPP loan fraud. Lets hope the entire government is on the same page as Mr. Cox. Owner of Private Investigation Firm (Ohio June 24), 18. Kao allegedly transferred $2 million to personal accounts. Nationwide Federal Defense, Compliance and Litigation. (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds. 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