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Eligibility of PPP Loans Exceeding Maximum Size Standards
The Office of Inspector General (OIG) is issuing this Evaluation Report to determine whether the U.S. Small Business Administration (SBA) made Paycheck Protection Program (PPP) loans in accordance with program size standards. This is a follow-up to our earlier report which identified 355 PPP loans that likely exceeded the maximum size standard and may have been erroneously approved. Based on updated data analysis, we identified that 79 of those 355 loans still appeared to exceed the maximum size standard. Our objective was to determine whether PPP loans were made in accordance with program...
Venezuelan Nationals with TPS Charged in Miami with Defrauding U.S. Government-Funded Covid-19 Relief Program
Freddy Urribarri, 42, and Mairilin Munoz 39, have been charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with their submission of false and fraudulent Paycheck Protection Program (PPP) loan applications. Both defendants are Venezuelan nationals who were granted Temporary Protected Status (TPS), which allowed them to remain in the United States temporarily after they had entered the country. They were living in Dania Beach, Fl. at the time of their arrests.
Miami Man Sentenced to 15 Years in Prison for Leading Payment Protection Program Fraud Scheme
Lazaro Verdecia Hernandez, 37, of Miami, was sentenced today to 15 years in federal prison for leading a scheme that involved obtaining fraudulent loans under the Paycheck Protection Program (PPP) and laundering the proceeds.
Las Vegas Man Sentenced To Prison For COVID-19 Unemployment Insurance Benefits Fraud
LAS VEGAS – A Las Vegas resident was sentenced today by Chief United States District Judge Andrew P. Gordon to 33 months in prison to be followed by three years of supervised release for a scheme to steal nearly $240,000 in unemployment insurance benefits.
Arizona Man Sentenced to Prison for COVID-19 and Tax Fraud
An Arizona man was sentenced to 4 years in prison for filing false tax returns and loan applications to obtain COVID-19 disaster relief.
Florida Woman Sentenced to Federal Prison for Supervising Maryland Unemployment Insurance Scheme
Baltimore , Maryland – U.S. District Judge Julie R. Rubin sentenced Tiia Woods, 47, of Jacksonville, Florida, to 74 months in prison followed by three years of supervised release. The sentence is in connection with Woods’s role as an organizer of an unemployment insurance (UI) fraud scheme. Through the conspiracy, victims lost approximately $3,296,725.
Leader of Federal Pandemic Fraud Unemployment Scheme Sentenced
ABINGDON, Va. – Josef Ludwig Brown, one of the leaders of a 17 defendant conspiracy to defraud the United States, commit program fraud, and commit mail fraud in connection with a scheme to file fraudulent claims for pandemic unemployment benefits was sentenced last week to 35 months in federal prison.
Ex-Congressman George Santos Sentenced to 87 Months in Prison for Wire Fraud and Aggravated Identity Theft
“Today, George Santos was finally held accountable for the mountain of lies, theft, and fraud he perpetrated. For the defendant, it was judgment day, and for his many victims including campaign donors, political parties, government agencies, elected bodies, his own family members, and his constituents, it is justice,” stated U.S. Attorney Durham. “To Mr. Santos and other dishonest individuals of that ilk, who lie, steal identities and commit frauds to get elected to public office, this prosecution speaks to the truth that my Office is committed to aggressively rooting out public corruption and...
Federal Law Enforcement Officer Arrested for Allegedly Fraudulently Obtaining COVID-19 Business-Relief Funds for Shell Companies
A United States Customs and Border Protection (CBP) officer has been arrested on a five-count federal grand jury indictment alleging he fraudulently obtained nearly $150,000 in COVID-19 pandemic business-relief loan funds for two of his sham businesses, the Justice Department announced today.
Miramar Mayoral Candidate Pleads Guilty to Covid-19 Relief Fraud
The owner of Theophin Consulting LLC has pleaded guilty to wire fraud for fraudulently obtaining Covid-19 relief loan proceeds under the Paycheck Protection Program (“PPP”) program.
Citrus Heights Man Pleads Guilty to Participation in $1 Million Unemployment Insurance Benefits Fraud Scheme and to Firearm Charge
Deshawn Oshaea Campbell, 36, of Citrus Heights, pleaded guilty today to being a felon in possession of a firearm and mail fraud
Nigerian Man Pleads Guilty to $10 Million Pandemic Unemployment Assistance Fraud Scheme
BOSTON – A Nigerian man has pleaded guilty in connection with a conspiracy to fraudulently obtain at least $10 million in COVID-19 unemployment benefits.
Suburban Chicago Police Officer Charged With Covid-Relief Fraud
WILLIAM FREDERICK REED allegedly fraudulently obtained Covid-relief loans and then concealed the proceeds in his bankruptcy case.
SBA’s Actions to Address Forgiven PPP Loans Subsequently Flagged as Potentially Ineligible
This report presents the results of our management advisory bringing the Small Business Administration’s (SBA) attention to concerns regarding forgiven Paycheck Protection Program (PPP) loans subsequently flagged as potentially ineligible using hold code 70 (potential clawback) for which the agency has not completed its review to facilitate recovery of improper payments for ineligible loans. A hold code is an identifier placed on a loan in the agency’s system indicating a potential issue needs to be resolved. SBA uses hold code 70 to flag forgiven PPP loans for which it subsequently suspects...
Columbia Man Sentenced in $1.2 Million Insurance Fraud and $30,000.00 COVID-19 Relief Fraud Cases
A Columbia, Mo., man who ran a scheme to defraud insurance companies through staged accidents and who fraudulently applied for COVID-19 relief funds was sentenced in federal court today for conspiracy to commit wire and mail fraud and aggravated identity theft.
Berkeley County Woman Admits to COVID 19 Fraud
Beverly Ashbaugh, age 51, of Martinsburg, West Virginia, has admitted to wire fraud involving COVID 19 funding. According to court documents, Ashbaugh filed claims seeking Pandemic Emergency Unemployment Compensation (PEUC) when the pandemic impacted her employment in March 2020.
Independence, MO Man Sentenced for $1.4 Million COVID-19 Scheme
An Independence, Mo., man was sentenced in federal court today for filing a false claim as part of a scheme to fraudulently receive nearly $1.4 million in COVID-19 relief funds from the government.
Restaurant Owner Sentenced to 42 Months in Prison for Tax Evasion and COVID-Relief Fraud
SAN DIEGO – Restaurateur Leronce Suel was sentenced in federal court today to 42 months in prison for submitting more than $1.7 million in fraudulent applications for COVID relief programs and failing to report the income to the IRS.
Fort Myers Couple Sentenced To Federal Prison For $3.4 Million COVID Relief Fraud Scheme
Fort Myers, Florida – U.S. District Judge Thomas J. Barber has sentenced Timothy Craig Jolloff (48, Fort Myers) and Lisa Ann Jolloff (58, Fort Myers) to eight years and one month, and three years, respectively, in federal prison for wire fraud, bank fraud and illegal monetary transactions. The Court also ordered the Jolloffs to pay $3.4 million in restitution to the Small Business Administration (SBA) and to forfeit $3.4 million which was the proceeds of the offense. The Jolloffs entered guilty pleas on April 24, 2024.
Two Men Sentenced for Misbranding and Conspiring to Price Gouge N95 Masks in Early Months of COVID-19 Pandemic
BOSTON – Two brothers, who co-owned a now-defunct Florida-based company, have been sentenced in federal court in Boston for charges associated with shipping facemasks that were misbranded as N95 respirators, and price gouging hospitals, during the earliest phase of the COVID-19 pandemic.
California Restaurant Owner Sentenced for COVID-19 and Tax Fraud Schemes
A San Diego restaurant owner was sentenced to 42 months in prison for schemes to defraud COVID-19 relief programs and filing false tax returns.
COVID-19: Effectiveness of UI ARPA Grants
The American Rescue Plan Act, as amended by the Fiscal Responsibility Act of 2023, provided $1 billion in funding to DOL to prevent and detect fraud, promote equitable access, ensure timely payment of benefits, and reduce backlogs. Of these funds, DOL provided approximately $219 million in grants to improve UI claimant outreach and customer service processes, implement strategies to reduce backlog, and improve access for workers in communities that may historically experience barriers. These grants will provide funding for states to improve public awareness and service delivery. This audit...
COVID-19: Employment and Training Grantee Sub-Recipients - New York
In March 2020, the COVID-19 pandemic caused many of ETA’s job training programs to cease operation. This interrupted participants’ job training, potentially preventing them from completing their training and getting a job in the areas in which they were trained. This series of audits will focus on how effectively ETA ensured workforce development grant funds were used as intended in the State of New York during the pandemic.
COVID-19: Impact of Waivers on UI Overpayments, Fraud Investigations, and Recoveries
On February 7, 2022, DOL issued Unemployment Insurance Program Letter 20-21, Change 1, regarding states’ ability to waive the recovery of certain UI overpayments under the CARES Act program. There are concerns these waivers could adversely impact the pursuit of fraud in the UI program. Also, the waivers could potentially allow for fraudulent CARES Act UI payments to go unrecovered. This audit will determine the impact of waivers on UI overpayments, fraud investigations, and recoveries.
COVID-19: Jobs for Veterans State Grants (JVSG) Program
The COVID-19 pandemic presented new challenges for VETS in its mission to: (1) prepare America’s veterans and transitioning service members for meaningful careers, (2) provide them with employment resources and expertise, (3) protect their employment rights, and (4) promote their employment opportunities. VETS’s JVSG program provides individualized career services to veterans with significant barriers to employment, especially veterans who are economically or educationally disadvantaged. The program also aims to increase employment opportunities for veterans and encourage the hiring of...
COVID-19: ETA Grant Sub-Recipient Audit - Texas
In March 2020, the COVID-19 pandemic caused many of ETA’s job training programs to cease operation. This interrupted participants’ job training, potentially preventing them from completing their training and getting a job in the areas in which they were trained. This series of audits will focus on how effectively ETA ensured workforce development grant funds were used as intended in the State of Texas during the pandemic.
Tampa Man Pleads Guilty To Fraudulently Spending More Than $300,000 In Covid Relief Funds
Tampa, Florida – United States Attorney Gregory W. Kehoe announces that Denys Perez (31, Tampa) has pleaded guilting to wire fraud related to COVID relief funds. Perez faces a maximum penalty of 20 years in federal prison. In addition, he faces a forfeiture order of $502,900, as well as a forfeiture order for the property he purchased with proceeds of his offense. A sentencing date has not yet been set.
Kansas Realtor Indicted for Tax Evasion and COVID-19 Loan Program Fraud
A federal grand jury in Kansas City returned an indictment charging a Kansas woman with tax evasion and wire fraud.
Previously Convicted Felon Sentenced to More Than 26 Years in Federal Prison for Possessing a Firearm in Connection With Drug Trafficking Fentanyl, Wire Fraud, and Aggravated Identity Theft
Baltimore, Maryland – Today, Chief U.S. District Judge George L. Russell, III, sentenced Ryan E. Dales, 36, of Baltimore, to 26 years in federal prison, followed by five years of supervised release. Dales, a previously convicted felon, was charged with unlawfully possessing a firearm as a felon, possession with intent to distribute fentanyl, possession of a firearm in furtherance of a drug trafficking crime, wire fraud, and aggravated identity theft.
Jacksonville Man Pleads Guilty To Wire Fraud Involving A Paycheck Protection Program Loan
Jacksonville, Florida – United States Attorney Gregory W. Kehoe announces that Larry E. Denson, Jr. (31, Jacksonville) has pleaded guilty to wire fraud involving COVID relief fraud through the Paycheck Protection Program (PPP). Denson faces a maximum penalty of 30 years in federal prison and payment of restitution to the United State government. Denson has also agreed to forfeit $18,190, the proceeds of the charged criminal offense. A sentencing date has not yet been set.
Two More Sentenced in Federal Pandemic Fraud Unemployment Benefit Scheme
ABINGDON, Va. – Two more of the 17 defendants charged with conspiring to defraud the United States, commit program fraud, and commit mail fraud in connection to a scheme involving filing fraudulent claims for pandemic unemployment benefits, were sentenced last week in U.S. District Court in Abingdon.
Maryland Man Sentenced to More Than Seven Years in Federal Prison for Unemployment Insurance Benefits Scheme During COVID-19 Pandemic
Greenbelt , Maryland – U.S. District Judge Lydia Kay Griggsby sentenced Michael Cooley, Jr., aka “Micheal Cooley Jr.,” “5Micmusik,” and “Michael White,” age 26, of Prince George’s County, Maryland, to 87 months in federal prison. In January 2025, Cooley pled guilty to conspiracy to commit wire fraud and aggravated identity theft, in connection with a conspiracy and scheme to defraud the Maryland Department of Labor (MD-DOL) and California Employment Development Department (CA-EDD).
New Britain Woman Admits Fraudulently Obtaining COVID-19 Relief Funds
VICTORIA KATES, 34, of New Britain, waived her right to be indicted and pleaded guilty yesterday before U.S. District Judge Sarala V. Nagala in Hartford to offenses related to her fraudulent receipt of COVID-19 relief funds.
Two Businessmen, a Certified Public Accountant, and Four Puerto Rico-Based Businesses Indicted on Charges of Fraud, Bribery, and Money Laundering
SAN JUAN, Puerto Rico – W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico, announced the indictment of two businessmen, a certified public accountant, and four Puerto Rico-based companies for a fraudulent scheme to illegally obtain federal recovery funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, bribe a bank employee, and launder the fraudulent proceeds of the scheme.
Northside Independent School District's Student Participation Counts Reported for ESEER-Funded Programs
Determine whether Northside reported verifiable counts of students who participated in ESSER-funded summer learning, summer enrichment, and comprehensive afterschool programs.
Maryland Man Pleads Guilty to Filing More Than $1 Million in Fraudulent Unemployment Insurance Claims
Baltimore, Maryland – Mervyn Fombe Abiko, 35, of Prince George’s County, Maryland, pled guilty to federal charges in connection with a scheme to fraudulently obtain more than $1 million in unemployment benefits.
Owner of Boston Area Pizzerias Sentenced to Two Years in Prison for Defrauding U.S. Small Business Administration
BOSTON – The owner of Stash’s Pizza was sentenced today in federal court in Boston for submitting false information to the U.S. Small Business Administration (SBA) to obtain a loan on behalf of a business he no longer owned.
Florida Man Pleads Guilty to Multi-Million Dollar Scheme to Defraud Medicare
Ocala, FL - A Florida man pleaded guilty on Monday to purchasing Medicare identification numbers and using those numbers to cause over $8.4 million of false and fraudulent claims to be submitted to Medicare.
Puerto Rico’s Department of Natural and Environmental Resources Properly Disbursed Funds but Was Slow in Expending Fishery Disaster Assistance Funds
We audited the Puerto Rico’s Department of Natural and Environmental Resources (PRDNER’s) use of Federal Emergency and Pandemic Relief Financial Assistance Funds. Our audit objective was to determine whether federal funds received by PRDNER to support its fisheries in recovering from the impacts of the COVID-19 pandemic1 and damages caused by several hurricanes were properly disbursed and used for their intended purpose. We conducted this audit in response to a congressional request, and answers to congressional questions about disaster relief funds are included in this report. Overall, we...
Former Altamonte Springs Man Pleads Guilty To Stealing COVID Relief Funds
Orlando, FL – Acting United States Attorney Sara C. Sweeney announces that Joshua Robinson (32, Texas) has pleaded guilty to wire fraud. Robinson faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.