The case was brought in Valdosta, Georgia. Data last refreshed on 1/31/2022. The case was brought in Milwaukee, Wisconsin. The Government alleged that Mr. Defrees submitted multiple loan applications at two different banks seeking $1.7 million in COVID-19 relief funds. The Government alleged that Mr. Dorceus owner of Elevate Horizons submitted fraudulent loan applications obtaining approximately $300,000 I COVI-19 relief funds. The Government alleged that Mr. Smith submitted fraudulent loan applications and obtained over $600,000 in COVID-19 relief funds. Mr. Moller has a prior conviction for fraud. On February 14, 2022, Mr. Cartlidge was sentenced to 72 months in prison, Mr. Redfern was sentenced to 60 months in prison, and Mr. McMiller was sentenced to 66 months in prison. The case is pending. He was sentenced to 135 months in prison on July 19, 2022. The case was brought in Atlanta, Georgia. The case was brought in Atlanta, Georgia. Kabbage, which processed over $7 billion in PPP . The Government also alleged that Israyelyan used the funds for his own personal use and transferred the proceeds to his family members. She was found not guilty of bank fraud. Christopher Hayes was charged with making a false, fictitious, or fraudulent claim to the Government. Mr. McCants pleaded guilty on June 6, 2022 and is scheduled for sentencing on September 9, 2022. Mr. Bernardo pleaded guilty on June 14, 2022, and his sentencing date is to be determined. His appeal is pending. He was sentenced to 51 months in prison on June 7, 2022. PPP loan fraud investigations are on the rise across the country. The Problem: This couple used fraudulently obtained PPP and EIDL funds to pad and flaunt a luxury lifestyle. Chanchikyan has pleaded not guilty, and his trial is scheduled for October 4, 2022. Sean Schoepflin and Erika Leon were charged with wire fraud and transactional money laundering. The Government alleged that Mr. Ashcraft submitted fraudulent loan applications seeking over $1.2 million in COVID-19 relief funds and received approximately $920,000. The case was brought in Ft. Lauderdale, Florida. Fraud lessons from 3 rounds of paycheck protection program The Government alleged that, while she was out on bond in a pre-existing healthcare fraud case, Ms. Terry submitted fraudulent loan applications to obtain $290,000 in COVID-19 relief funds. The Government alleged that Ms. Falgoust filed 5 fraudulent loan applications seeking over $500,000 in COVID-19 relief funds. The case was indicted in November 2021 and the defendants pleaded not guilty at their arraignment. The case was brought in Miami, Florida. The Government alleged that Mr. Martinez acquired approval to issue PPP loans as a non-bank lender and earned over $70 million in lender fees. Mr. Smith pleaded guilty to one count of bank fraud. Jones pleaded guilty on June 1, 2022 and is scheduled to be sentenced on September 27, 2022. Mr. Redfern and Mr. McMiller both pleaded guilty on September 23, 2021, to multiple counts of wire fraud. Artur Chanchikyan was charged with wire fraud, theft of government property and concealment money laundering. He was sentenced to 57 months in prison on February 2, 2022. Both Ms. Stanley and Mr. Philus have pleaded guilty. On March 2, 2022, Ms. Martins pleaded guilty to the charges and is scheduled to be sentenced on August 4, 2022. The case was brought in Dublin, Georgia. The primary federal agencies that are currently conducting PPP loan fraud investigations are: 1. Contact: newsroom@ci.irs.gov. Researchers estimate that $76 billion in PPP loan money was taken illicitly. The Government alleged that Ms. McConnell submitted fraudulent loan applications seeking over $232,000 in COVID-19 relief funds. The Government alleged that Israyelyan admitted to owning a hospice agency that was never operating during the COVID-19 pandemic and received over $89,000 in COVID-19 relief funds to treat patients. This list is organized by the date charges were filed, and only includes cases that have been indicted or charged by information. Ms. Terry was sentenced to 65 months in the prior healthcare fraud scheme. They have not yet been sentenced. COVID relief PPP fraud probe includes over 50 employees in Cook County Some employees received about $40,000 in loans, he said. Mr. Rai pleaded guilty to one count of false statements to a financial institution on February 9, 2021. On June 2, 2021, Mr. Smith was sentenced to 57 months in prison. The Government alleged that the Kwaks submitted fraudulent loan applications on behalf of several shell companies to obtain over $4 million in COVID-19 relief funds. The case was brought in Norfolk, Virginia. On September 14, 2021, Mr. Goldstein was sentenced to 12 months and 1 day in prison. On October 20, 2021, Mr. The Government alleged that Ms. Stanley and Mr. Philus submitted fraudulent loan applications seeking over $1 million in COVID-19 relief funds. The case was brought in Milwaukee, Wisconsin. On September 18, 2020, Mr. Butziger pleaded guilty to conspiracy to commit bank fraud. Tonye Johnson was charged with conspiracy to commit wire fraud and bank fraud, wire fraud, and bank fraud. Brandon Lewis was charged with two counts of wire fraud and one count of making false statements. The Government alleged that Mr. Hosey knowingly and willfully conspired to commit fraud against the United States regarding COVDI-19 relief funds. His sentencing is under seal. Mr. McGee pleaded not guilty, and his trial is scheduled for January 24, 2023. Izzat Freitekh and Tarik Freitekh were charged with conspiracy to commit wire fraud, bank fraud scheme, money laundering, and other related charges. Blood has pleaded not guilty, and his trial is set for August 16, 2022. Ronald Smith and Terri Miller were charged with wire fraud, money laundering, and fraud in connection with emergency benefits. The case was brought in Atlanta, Georgia. Mr. Smith pleaded guilty and was sentenced to 120 months. The data shown has been made available to the public by the SBA. The Government alleged that Mr. Markovich conspired to unlawfully bill for treatment services during the COVID-19 pandemic, as well as filing fraudulent loan applications seeking over $500,000 in COVID-19 relief funds. The case was brought in Houston, Texas. The Government alleged that Rosado submitted fraudulent loan applications through Jai Rosado Consulting LLC obtaining approximately $50,000 in COVID-19 relief funds. Stanley Dorceus was charged with conspiracy to defraud the United Sates. He is scheduled for sentencing on September 2, 2022. The Government alleged that Mr. Thompson recruited the other defendants to submit fraudulent loan applications on behalf of each of their companies, seeking approximately $3 million total in COVID-19 relief funds. On November 15, 2021, Richard Ayvazyan was sentenced to 17 years and Marietta Terabelian was sentenced to 72 months in prison. The Government alleged that Mr. Fitzgerald-Holley submitted fraudulent loan applications and obtained approximately $305,854.00 in COVID-19 relief funds. Charmaine Redding was also charged separately and pleaded guilty to one count of conspiracy to commit fraud. On September 20, 2021, Mr. Price pleaded guilty to two counts of wire fraud and three counts of money laundering. Please cite ProPublica by linking to this page. He is scheduled to be sentenced on September 27, 2022. It is also alleged that Ms. Ford-Victory received some kickback payments for submitting the claims. PPP Loan Scams: 900 open criminal investigations, 100 arrested - WAVE Chandra Norton was charged with one count of conspiracy to commit fraud. The Government alleged that Ms. Kirkland submitted a fraudulent loan application seeking over $66,000 in COVID-19 relief funds. Baoke Zhang was charged with wire fraud. This case was brought in Cleveland, Ohio. The Government alleged that Mr. Casutt submitted fraudulent loan applications and obtained $500,000 in COVID-19 relief funds. Gurgen Israyelyan was charged with 3 counts of theft of government property. A separate investigation by the nonpartisan Project on Ms. Norton pleaded guilty on November 12, 2020, and she is scheduled to be sentenced on November 10, 2022. Scott Suber was charged with one count of bank fraud. . In the New York case, Mr. Sadleir pleaded guilty on January 19, 2022 and his sentencing hearing is to be determined. Their sentencing date has not been scheduled at this time. Mr. Bischoff pleaded guilty on November 23, 2020. Some people have already been convicted, while others are being secretly investigated. The Government alleged that Garibyan filed fraudulent loan applications seeking over $57,000 in COVID-19 relief funds for his home health agency, GMA Home Health, Inc., which was never operational during the pandemic. Steven Goldstein was charged with fraud in connection with major disaster benefits. On the same day, Mr. Philus was sentenced to 30 months in prison. On June 16, 2021, Darrell Thomas pleaded guilty to one count of conspiracy to commit bank and wire fraud and one count of money laundering, and he also admitted to additional fraud as part of his plea deal, including obtaining fraudulent automobile loans. The case was brought in Detroit, Michigan and is currently pending. On November 1, 2021, he pleaded guilty to an information and was sentenced to 24 months on February 2, 2022. The Government alleged that Izzat and his son Tarik submitted fraudulent loan applications seeking over $1.7 million in COVID-19 relief funds. PPP data In February There are, of course, many other CARES Act fraud investigations currently pending that may later result in criminal charges. The case was brought in Harrisburg, Pennsylvania. Kyle Brenizer was charged with several counts of wire fraud, money laundering, and aggravated identity theft. The Government alleged that Mr. Augustin submitted fraudulent loan applications for his company Clear Vision Music Group LLC obtaining more than $24 million dollars in COVID-19 relief funds. 1343) and making false statements . On January 31, 2022, Ms. Ford-Victory pleaded guilty to one count of wire fraud conspiracy. This case was brought in Greenville, South Carolina. The Government alleged that Mr. Rivero, a tax preparer, submitted fraudulent loan applications seeking to obtain over 100 loans for $2.3 million in COVID-19 relief funds. The case was brought in Los Angeles, California. Joshua Argires was charged in a criminal complaint with making false statements to a financial institution, wire fraud, bank fraud, and money laundering. The case was brought in Los Angeles, California. The Government alleged Ms. Misseldine stole the identity of a deceased infant who passed in 1979 and used that identity to obtain a passport, gain admission into a university, and submit fraudulent loan applications to obtain approximately $1.5 million in COVID-19 relief funds. Chad Schampers was charged with one count of wire fraud and money laundering. Mr. Criss pled guilty and was sentenced to 10 months in prison on November 1, 2021. On June 17, 2021, Mr. Rai was sentenced to 24 months in prison. The Government alleged that Soto submitted 17 fraudulent loan applications and obtained approximately $246,000 in COVID-19 reliefs funds. Mr. Hsu pleaded guilty to one count of wire fraud. Report it to the Small Business Administrations with just a few clicks. The Government has dismissed the complaint against Mr. Olugbuyi without prejudice, meaning they may still indict him in the future. Samuel Davis was charged with bank fraud and money laundering. Both defendants were sentenced to 21 months in prison in June 2022. To help our clients understand the scope of these PPP and EIDL loan fraud investigations, and to make sure they are being treated fairly in the process, we keep close track of federal criminal cases involving CARES Act programs. The case was brought in Sherman, Texas. Jase Gautreaux was charged with making false statements to a financial institution, bank fraud, wire fraud, and money laundering. Steven Jalloul was charged with one count of engaging in monetary transactions using property derived from unlawful activity. On October 21, 2021, Mr. Kindambu was sentenced to 33 months in prison. The case was brought in Billings, Montana. Christopher Licata was charged with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United Sates, and several other charges. The PPP allows the interest and principal to be forgiven if businesses spend the . See Wook Chung was charged with fraud by wire, radio, or television. Smith pleaded guilty and was sentenced to 20 months in prison on December 16, 2021. He was also sentenced on charges of drug trafficking and money laundering in a separate case that same day. Mr. Kanyike has pleaded guilty. The case was brought in Los Angeles, California. On March 24, 2022, Ms. Cartwright-Powers was sentenced to 20 months in prison. Andre McBreairty was charged with false statements. The Government alleged that the married couple defrauded 1,700 victims in a scheme involving applying for small business loans and fraudulently collecting unemployment benefits. Christopher Mazzei and Erin Mazzei were charged with conspiracy to commit wire fraud, conspiracy to launder money and money laundering. Mark Mason, Jr. was charged with one count of wire fraud and money laundering. The case was brought in Fort Myers, Florida. She was sentenced to 2 years of probation on February 28, 2022. Ms. Falgoust pleaded guilty to an information on July 22, 2021. Attorneys, including the Fraud Section, have resulted in a variety of charges, including wire fraud (18 U.S.C. The Government alleged that Mr. Ho and other individuals submitted fraudulent loan applications and obtained over $2.4 million in COVID-19 relief funds. Benjamin Hayford was charged with bank fraud and four counts of making false statements to a financial institution. All the other defendants have pleaded not guilty, and their cases are pending. The Government alleged that Mr. Thomas recruited the other defendants to submit fraudulent loan applications on behalf of fourteen different businesses, which did not have any employees or business expenses, seeking over $12 million in COVID-19 relief funds. Ms. VanPelt pleaded guilty on August 18, 2021. Paul and Michelle Kwak were charged with conspiracy to commit wire fraud, wire fraud, and money laundering. PDF Data as of December 26, 11:59 PM ET Summary - Small Business Administration The case was brought in Brunswick, Georgia. The Government alleged that Mr. Knight submitted fraudulent loan applications and obtained $149,900 in COVID-19 relief funds. The Government alleged that Ms. VanPelt submitted fraudulent loan applications on behalf of six of her companies seeking almost $8 million in COVID-19 relief funds. On June 24, 2021, Ms. Benton pleaded guilty to mail fraud.