Reports

Today, the Justice Department’s National Fraud Enforcement Division along with the Small Business Administration (SBA) and the SBA Office of Inspector General, as part of a Heartland Fraud Surge announced the results of Operation No Doze, a surge of criminal enforcement actions targeting fraud in SBA’s small business COVID-era loan programs.

Two of the defendants are also charged with fraudulently obtaining Covid-relief loans.

The defendants allegedly fraudulently obtained millions of dollars in loans under the CARES Act.

FRANCESCO DISTEFANO and a co-defendant allegedly used fraud proceeds to purchase a Lamborghini Huracan, Maserati Ghibli, and Porsche 911.

JOSEPH J. CIPOLLA JR. was ordered to pay $2 million in restitution to the IRS, State of Illinois, U.S. Small Business Administration, and other entities and individuals.

“Our office is committed to rooting out abuse of the relief programs provided by the CARES Act," said Acting U.S. Attorney Morris Pasqual.

SHARHABEEL SHREITEH, an accountant in Palos Hills, Ill., and TRACY MITCHELL, the owner of a business in Joliet, Ill., allegedly engaged in fraud related to the Paycheck Protection Program (PPP).

The Justice Department announced today the results of a coordinated, nationwide enforcement action to combat COVID-19 fraud, which included 718 enforcement actions – including federal criminal charges against 371 defendants – for offenses related to over $836 million in alleged COVID-19 fraud.