Reports

Florida companies Kingwood Orlando Reunion Resort LLC (Orlando Reunion) and Kingwood Crystal River Resort Corp. (Crystal River) have agreed to settle allegations that they violated the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by knowingly providing false information in support of a Paycheck Protection Program (PPP) loan forgiveness application submitted by Crystal River.

Two Michigan nonprofit organizations, the Michigan Education Association (MEA) and the Michigan Education Special Services Association (MESSA), have agreed to settle allegations that the organizations violated the False Claims Act (FCA) by applying for and obtaining loans under the Paycheck Protection Program (PPP) for which they knew or should have known they were ineligible.

A Kingdom City, Mo., business owner pleaded guilty in federal court today to fraudulently receiving more than $673,000 in loans for several businesses under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Three California companies have agreed to pay a total of $530,000 to settle allegations that they knowingly violated the False Claims Act when they received and retained more than one Paycheck Protection Program (PPP) loan prior to Dec. 31, 2020, in violation of PPP rules.

Four California agricultural companies and their owner have agreed to settle allegations that they violated the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by knowingly submitting false information in support of Paycheck Protection Program (PPP) loan applications. Mendota Land Co., Sweetwood Farm Co. LLC, Sweetwood Farm Inc., Seasholtz Co. LLC, and their owner John Seasholtz (collectively, “Seasholtz”) are alleged to have improperly inflated the employee headcount on the companies’ PPP loan applications by impermissibly including non...

A Beverly Hills father and son were sentenced today to federal prison terms for defrauding government programs designed to help businesses survive the economic shock of the COVID-19 pandemic.

A downtown Los Angeles man was found guilty today by a jury of federal criminal charges for fraudulently obtaining more than $150,000 – and attempted to obtain an additional $1.85 million – in COVID-relief loans for several companies he claimed to own and operate.

Jaleel Phillips, age 25, of Capital Heights, Maryland, pleaded guilty today to a federal wire fraud conspiracy, in relation to a scheme to unlawfully obtain COVID-19 relief loans and unemployment benefits.

The Department of Justice announced today new criminal charges, convictions, and sentences as part of its ongoing initiative to prosecute fraud in connection with various pandemic relief programs under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, including the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, as well as other crimes relating to the COVID-19 pandemic.

An Orange County man was sentenced today to 48 months in federal prison for fraudulently obtaining more than $5 million in COVID-relief loans for three shell companies.

Tacoma – A 45-year-old resident of Lekki, Nigeria, was sentenced today in U.S. District Court in Tacoma to 5 years in prison for wire fraud and aggravated identity theft for his attempt to steal nearly $2.4 million from the United States government, including approximately $500,000 in pandemic-related unemployment benefits, announced U.S. Attorney Nick Brown.

A Beverly Hills man – whose sons pleaded guilty earlier this month to felonies for defrauding COVID-relief programs – pleaded guilty today to a federal criminal charge for fraudulently seeking more than $6.7 million in COVID-related small business loans for more than half a dozen fake companies.

A federal jury in Atlanta convicted a South Carolina man today of fraudulently obtaining a $300,000 forgivable Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Recognized as a leader in pandemic relief fraud prosecutions, the Southern District of Florida’s U.S. Attorney’s Office has been selected to head one of three COVID-19 Fraud Strike Force Teams nationally.

Today the Justice Department announced the establishment of three Strike Force teams created to enhance the Department’s existing efforts to combat and prevent COVID-19 related fraud.

DENVER – Today, the U.S. Secret Service returned approximately $286 million in fraudulently obtained Economic Injury Disaster Loans (EIDL) to the Small Business Administration (SBA). These recovered funds were generated by fraudulently submitted EIDL loan applications using fabricated or stolen employment and personal information.

LAS VEGAS – Jonathan Millard Robinson (44) pleaded guilty yesterday to unlawful possession of ammunition and fraudulently submitting a loan application to a lender under the Coronavirus Aid, Relief, and Economic Security Act. U.S. District Judge Richard F. Boulware II scheduled a sentencing for November 17, 2022.

Yesterday, Senior U.S. District Judge Donald L. Graham sentenced 51-year-old Elisa Rivera to 60 days in federal prison, to be followed by 18 months of supervised release, after she pled guilty earlier this year to participating in a Covid-19 relief fraud conspiracy.

LAS VEGAS – A Las Vegas resident was sentenced yesterday by U.S. District Judge Andrew P. Gordon to four years in prison followed by three years of supervised release for possessing a stolen firearm and submitting fraudulent loan applications to the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.

A Corona man pleaded guilty today to federal criminal charges in connection with a scheme to submit false loan applications that brought him more than $6.6 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds.

BOSTON – A Brockton man was charged on July 21, 2022 in connection with a scheme to submit false applications to obtain Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) funds through the Small Business Administration (SBA) which were made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Salt Lake City Man Charged in $1.8 Million CARES Act Loan Fraud Scheme

A San Fernando Valley certified public accountant pleaded guilty today to a federal criminal charge for helping a long-time client fraudulently obtain a $1.2 million COVID-19 business loan by knowingly preparing a false corporate tax return on the client’s behalf.

Eight defendants were charged in the Eastern District of Pennsylvania today with scheming to fraudulently obtain more than $7 million in Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL), and pre-pandemic Small Business Administration (SBA) loans.

BOSTON – A Winchester man was sentenced yesterday in federal court in Boston in connection with filing fraudulent loan applications seeking more than $13 million in forgivable loans guaranteed by the Small Business Administration (SBA) for COVID-19 relief through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

A federal jury in Detroit convicted a Michigan man today for a wire fraud and money laundering scheme to obtain more than $4.1 million in Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

LAS VEGAS – A Las Vegas resident was sentenced today to one year and nine months in prison for filing fraudulent loan applications that sought over $100,000 in loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.

An Orange County man has agreed to plead guilty to federal criminal charges that he fraudulently obtained more than $5 million in COVID-relief loans for three sham companies.

Seattle – A 28-year-old New York City man was indicted this week in the Western District of Washington for three counts of bank fraud related to his abuse of the COVID-19 Pandemic Paycheck Protection Program (PPP), announced U.S. Attorney Nick Brown.

Orlando, Florida – U.S. District Judge Anne C. Conway has sentenced Tomas Ziupsnys (39, Kissimmee) to five years in federal prison for conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Holly Lynn Urban (36, Kissimmee) was sentenced to two years and six months in federal prison for conspiracy to commit bank fraud. The court also ordered both defendants to forfeit $632,000, which they had obtained from their participation in the bank fraud conspiracy. Ziupsnys had pleaded guilty on February 3, 2022, and Urban had pleaded guilty on January 20, 2022.

An Orange County man was sentenced today to 30 months in federal prison for fraudulently obtaining more than $1.5 million in Paycheck Protection Program (PPP) COVID-relief loans that he used for personal expenses and stock market trading.

Tacoma – A 45-year-old resident of Lekki, Nigeria, pleaded guilty today in U.S. District Court in Tacoma to wire fraud and aggravated identity theft for using stolen identities to claim hundreds of thousands of dollars in pandemic-related unemployment benefits, announced U.S. Attorney Nick Brown.

Four people have been charged with participating in COVID-19 relief fraud schemes, and three of them have already pled guilty.

A Riverside County man who purported to own a pothole-repair company was found guilty by a federal jury today of fraud charges for using hundreds of thousands of dollars from the Paycheck Protection Program (PPP) for personal expenses such as luxury cars after he obtained a PPP loan for more than $7 million on behalf of his business.

A federal jury convicted a California man today of misappropriating hundreds of thousands of dollars in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

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).

A Texas woman was sentenced today to 70 months in prison for her scheme to defraud the Paycheck Protection Program (PPP) of over $1.9 million in loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.