Posted:
July 29th, 2020
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July has been a busy month for fraud prosecutions stemming from false applications for COVID relief funds. According to public documents, the United States Department of Justice (DOJ) has been charging individuals across the country with fraud for applying and receiving Paycheck Protection Program (PPP) loans via false information. Here is a brief roundup of July’s indictments:
Southern District of Texas a 29-year-old man was indicted for claiming $1.1 million to maintain the payroll for his barbecue and landscaping companies. According to the federal prosecutors, the man used the money to fund a cryptocurrency account. He’s been charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions
In the Southern District of Florida a 37-year-old man was indicted for receiving just $22,000 in false PPP loans for his medical equipment company. However, the man was also indicted for a $5.6 million Medicare fraud scheme. He’s been charged with conspiracy to commit health care fraud; payment of health care kickbacks; and making false statements to a financial institution, the latter is the only charge that relates to the PPP fraud.
Also in the Souther District of Florida, a 29-year-old man was indicted for fraudulently receiving $3.9 million in PPP loans. The Government alleges he used the money to buy himself a Lamborghini. He has been charged with bank fraud, making false statements to a financial institution, and engaging in transactions in unlawful proceeds.
In the Western District of Washington a 48-year-old man was indicted for claiming $5.5 million in PPP loans for six different companies – via eight different applications. According to the federal prosecutors, the man placed much of the funds in his personal brokerage fund. He’s been charged with wire fraud and money laundering.
In the Central District of California a 40-year-old man was indicted for fraudulently obtaining $8.5 million in PPP loans. The federal government allege he used some of the money to fund his own brokerage fund and to pay for gambling at a Las Vegas casino. He’s been charged with one count of bank fraud.
In Washington D.C., a 40-year-old man was indicated for seeking $400,000 in PPP loans under the auspices of his construction company. The man has been charged with making false statements to a financial institution.
