Reports

Angelo Stephen, 33, a former Federal Bureau of Prisons Correctional Officer, and George Arestuche, 47, a former Miami-Dade County Aviation Department employee, were sentenced in separate cases after pleading guilty to defrauding COVID-19 relief programs.

Raisha Kelly, 44, of Loxahatchee, FL was sentenced to sixty months in prison followed by three years of supervised release and ordered to pay $443,895 in restitution by United States District Court Judge Federico A. Moreno. The sentence follows Kelly’s conviction for conspiracy to commit wire fraud and wire fraud.

On Nov. 8, a federal jury convicted Lazaro Verdecia Hernandez, 37, and Yadier Rodriguez Arteaga, 41, both of Miami, of conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering, in connection with a scheme to obtain fraudulent loans under the Paycheck Protection Program (PPP). Verdecia was also convicted of wire fraud.

Yesterday, Daniel Fleureme, 56, of Miami-Dade County, a former Miami-Dade Corrections and Rehabilitation Department (MDCRD) Corrections Officer, pled guilty to wire fraud for defrauding a COVID-19 relief program by fraudulently obtaining an Economic Injury Disaster Loan from the U. S. Small Business Administration (SBA).

Brett Deuter and his businesses, Deuter Construction, LLC, and Enlighten, LLC, consented to an $850,000 judgment against them in United States District Court after admitting to violations of the False Claims Act, U.S. Attorney Josh Hurwit announced.

The U.S. Attorney’s Office for the Southern District of Florida remains a leader in COVID-19 pandemic relief prosecutions, holding a range of actors accountable for these crimes. Over this summer alone, the district has charged 17 individuals with COVID-19 relief fraud cases, with scheme amounts totaling over $21 million.

Travis Lee Harris has been sentenced to federal prison for wire fraud stemming from his fraudulent acquisition of a Paycheck Protection Program (PPP) loan for nearly $1,000,000, during the COVID-19 pandemic.

SAN DIEGO – Andre Shammas, owner of Shammas Funding Inc., pleaded guilty in federal court today to fraud charges, admitting that he submitted bogus applications for more than $5 million in pandemic-related loans intended to help struggling businesses during the pandemic.

Greenbelt, Maryland – On Tuesday, August 27, 2024, the Honorable Deborah L. Boardman sentenced Rudolph Brooks, age 48, of Cheltenham, Maryland, to 18 months in federal prison followed by 2 years of supervised release for fraudulently obtaining over $3.5 million in COVID-19 Coronavirus Aid, Relief, and Economic Security (“CARES”) Act Payroll Protection Program (PPP) loans. The Court also ordered Brooks to forfeit all property and assets derived from or obtained as a result of his criminal activity, including a 2018 Tesla Model 3, property located in Upper Marlboro, Maryland, and at least $2,231...

Roderick Billingslea has been sentenced to federal prison for obtaining a fraudulent Paycheck Protection Program (PPP) loan and operating illegal trucking businesses.

Mycheal Arnell Brady, also known as “Michael Brady,” has been indicted on federal charges of wire fraud and aggravated identity theft, for stealing COVID-19 relief funds and submitting fraudulent federal tax refunds using the stolen identities of multiple individuals. Brady has also been charged with possession of unauthorized access devices that contained dozens of the identity theft victims’ personal information, including their Social Security numbers.

West Coast Dental Administrative Services LLC (formerly West Coast Dental Services Inc.), a Brentwood-based company which operates a network of dental offices in Southern California, and its founders and former owners, Drs. Soleyman Cohen-Sedgh, Farid Pakravan and Farhad Manavi, have paid $6.3 million to resolve allegations that they knowingly violated the False Claims Act in connection with seven improper loans that West Coast Dental Services Inc. (West Coast Dental) and affiliated dental offices received under the Paycheck Protection Program (PPP).

Malaina Chapman, 37, of Hialeah, Fla. has been charged with conspiracy to commit wire fraud, wire fraud and bank fraud. She had her initial appearance in Miami federal court today.

CHARLESTON, S.C. — Five of eight individuals who were charged for their role in a COVID-19 loan fraud scheme were sentenced this week.

SAN DIEGO – Multiple nonprofit organizations—including two private country clubs and two homeowners associations—have paid $5,809,021.60 to settle allegations that they violated the False Claims Act by knowingly submitting false claims and obtaining Paycheck Protection Program loans for which they were not eligible.

“As alleged, the defendant made a business out of defrauding the government by falsely claiming that she and others needed government loan benefits to pay their employees during the pandemic. This money was meant to help businesses weather the pandemic. In reality, the defendant was lining her own pockets,” stated United States Attorney Peace. “This Office will continue prosecuting those who took advantage of the COVID crisis and stole funds from vitally important government relief programs.”

BOSTON – Bankrupt lender Kabbage, Inc. d/b/a KServicing, has agreed to resolve allegations that it knowingly submitted thousands of false claims for loan forgiveness, loan guarantees, and processing fees to the U.S. Small Business Administration (SBA) as part of the Paycheck Protection Program (PPP), in violation of the False Claims Act (FCA).

LAS VEGAS – A Las Vegas woman was sentenced Wednesday by United States District Judge James C. Mahan to 30 months in prison to be followed by three years of supervised release for fraudulently seeking over $1 million in COVID-19 Paycheck Protection Program (PPP) loans.

LAS VEGAS – A Las Vegas man was sentenced today by United States District Judge Cristina D. Silva to two and a half years in prison to be followed by three years of supervised release for devising a scheme to fraudulently obtain more than $550,000 in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loan applications that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Raisha Kelly, 43, and Widny Thibaud, 44, of Loxahatchee, Florida and Cortira Gray, 33, and Ann Gilchrist, 55 of Miami, Florida have been charged with conspiracy to commit wire fraud wire fraud in connection with their submission of false and fraudulent PPP loan applications.

Two former City of Miami Police Department (MPD) employees pled guilty for their involvement in separate COVID-19 relief fraud cases.

Seattle –Brands LLC, has agreed to pay $989,438 to the United States to resolve allegations the company improperly obtained a Paycheck Protection Loan from the U.S. Small Business Administration.

On Feb. 5, a Miami woman was sentenced to 70 months in federal prison for money laundering of nearly $2 million in fraudulent COVID-19 relief loans, after previously pleading guilty in October 2023.

SAN JUAN, Puerto Rico – W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico, announced the indictment of 19 individuals for their participation in a scheme to illegally obtain federal recovery funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Grand Jury charged the defendants with multiple counts of wire fraud and money laundering.

LAS VEGAS – A Las Vegas man was sentenced today by United States District Judge Andrew P. Gordon to two years and six months in prison to be followed by three years of supervised release for devising a scheme to fraudulently obtain more than $42,000 in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loan applications that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

LAS VEGAS – A North Las Vegas man was sentenced today by United States District Judge Gloria M. Navarro to 19 months in prison to be followed by three years of supervised release for submitting at least 56 fraudulent Paycheck Protection Program (PPP) loan applications on behalf of himself and others totaling more than $1.1 million dollars over the course of more than six months.

On Nov. 1, a Miami federal grand jury charged three Miami residents for their alleged role in a COVID-19 relief fraud scheme.

NEW ORLEANS – FRANK LABRUZZO pleaded guilty on October 31, 2023, to a bill of information for conspiring with co-defendant, Cynthia Caronna, and a United Kingdom resident, to defraud a business seeking to purchase personal protective equipment (PPE) at the height of the COVID-19 pandemic, announced U.S. Attorney Duane A. Evans.

A federal judge in Miami has sentenced Jonathan Grenon, 37, and Jordan Grenon, 29, to 151 months in prison, for conspiring to defraud the United States by distributing an unapproved and misbranded drug, and for contempt of court. Mark Grenon, 66, and Joseph Grenon, 36, were sentenced to 60 months in prison, the statutory maximum sentence for conspiring to defraud the United States by distributing an unapproved and misbranded drug.

NEW ORLEANS - CYNTHIA CARONNA, a resident of Jefferson Parish, pleaded guilty on August 22, 2023, to a bill of information for conspiring with her co-defendant, Frank LaBruzzo, and with a resident of the United Kingdom to defraud a business seeking to purchase personal protective equipment (PPE) at the height of the COVID-19 pandemic, announced U.S. Attorney Duane A. Evans.

NEW ORLEANS – On August 2, 2023, U.S. Attorney Duane A. Evans announced the charging of FRANK LABRUZZO and CYNTHIA CARONNA for conspiracy to commit wire fraud in violation of Title 18, United States Code, Sections 1343 and 371.

MIAMI – A federal jury in Miami has found Mark Grenon, 65, and his three sons, Jonathan Grenon, 38, Jordan Grenon, 29, and Joseph Grenon, 36, guilty of

SAN DIEGO – University City Dermatologist Mona Zohdi Mofid was sentenced in federal court today to two years’ probation after pleading guilty in April to misdemeanor hoarding of N95 respirator masks that had been designated scarce during the COVID-19 pandemic.

WASHINGTON – Elias Eldabbagh, 30, of Washington, D.C., pleaded guilty in federal court today to carrying out a scheme to steal more than $31 million under the CARES Act and laundering the proceeds of his scheme. Eldabbagh succeeded in stealing $2,385,000 under the Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL).

BOSTON – A Quincy man was sentenced yesterday in federal court in Boston in connection with selling lanyards that falsely claimed to protect against viruses.

Additional charges have been returned by a federal grand jury against an elected Missouri state representative for a nearly $900,000 COVID-19 fraud scheme, following her indictment last month for a separate fraud scheme in which she made false claims about a supposed stem cell treatment marketed through her clinics in southern Missouri, and for illegally providing prescription drugs to clients of those clinics.