louisiana ppp loan arrests

PPP loan information is available to the public through the SBA, and several groups have even published that information in the form of online searchable databases that anyone can use. Former La. Does something look fishy to you? (WAFB) - Since the Paycheck Protection Program (PPP) launched to help businesses pay their employees to prevent great losses due to the COVID-19 pandemic, some people have of course tried to exploit the program and defraud the federal government of money. A lock ( [1] As the introductory phrase signifies, the entirety of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation. Report it to the Small Business Administrations with just a few clicks. Analyzing that data for red flags is a way to identity subsets of loans and grants that warrant closer scrutiny and to help direct scarce investigative resources. Sen. J.D. POGO was unable to reach Edwards before publication. About one year after the passage of the CARES Act, $626 million in funds have already been seized or forfeited related to criminal and civil investigations of pandemic loan fraud. Who in Louisiana got Paycheck Protection Program loans during the pandemic? EVERY charged $45.00 to $120.00 from the individuals she recruited to prepare and submit the fraudulent PPP application. But such gaps can create ambiguities that muddy the waters in overseeing spending., Still, much can be done with the data that does exist. Name Jobs Reported Current Loan Loan Forgiveness; Amount ($) Date Approved Amount ($) Date; CONQUEST COMPLETION SERVICES, LLC: 129: 6,940,800: July 30, 2020: 7,069,157 The Veterans Administration, Office of the Inspector General, is an active member of the PRAC Fraud Task Force. April 15, 2021. At the request of WAFB, the Louisiana Board of Barber Examiners also searched their apprentice, student, barber, and shop records for those eight names and addresses, and came up empty as well. The PPP loans are forgivable under certain conditions and the loan forgiveness is not taxable income for federal tax purposes. NGUYEN, 44, and VICTORIA HO, 31, both of Hicksville, New York, and DAT HO, 33, of the Bronx, New York, are each charged with one count of conspiracy to commit bank and wire fraud, which carries a maximum sentence of 30 years in prison; one count of major fraud against the United States, which carries a maximum sentence of 10 years in prison; and one count of conspiracy to make false statements, which carries a maximum sentence of five years in prison. The PPP was developed to ease the pain of COVID-19 economic restraints on working Americans. 107 of the cases, accused individuals allegedly falsified payroll documentation to justify either getting a loan or getting a bigger loan than they were eligible for; 93 of the cases, accused individuals allegedly created fake tax documents used for verifying details in loan applications; 41 of the cases, accused individuals allegedly created bogus companies to get loans; 28 of the cases, accused individuals allegedly used defunct companies to get loans; 20 of the cases, accused individuals used stolen identities or aliases while applying for loans; 12 of the cases, accused individuals allegedly falsified ownership of existing legitimate businesses; 28 of the cases, accused individuals also obtained Economic Injury Disaster loans (some of these individuals have been accused of fraudulently obtaining these loans. While the multi-million dollar PPP loan scam cases get the national headlines, federal prosecutors are going after PPP loan fraud in all amounts. Greenberg is a friend of Florida Republican Matt Gaetz, and both were identified in a recent New York Times report as having allegedly paid women for sex, as well as potentially a 17-year-old girl. Director for the Louisiana SBA District Office Michael Ricks said while that information may raise some red flags on the surface, he explained that not complying with an industrys licensing requirements does not necessarily disqualify someone from being eligible for a PPP loan. 2020 Louisiana Individual Income Tax returns and payments are due Monday, May 17, 2021. An estimated 1% of that 2009 stimulus was lost to fraud (some claim the rate is even lower than that). The SBA has very broad rules, very, very large leeway on what the lender had to request from the bar to get that guarantee secure, said the SBA Louisiana District Director Michael Ricks. Nearly a dozen of those people took out two loans. These cases further highlight the ways individuals appear to have taken advantage of lax oversight in the program. Allegedly misrepresenting the number of employees on their payroll to obtain the funding, they deposited this money into accounts controlled solely by them. 6 AVG COMPANY SIZE. (212) 637-2600, Human Trafficking & Child Sexual Exploitation, Department of Justice Harassment Prevention Resource, Download Ngoc Manh Nguyen et al. 61000. criminally charging someone for stealing $10,000 or less. In connection with loan applications for COVID-19 relief available from the Paycheck Protection Program (PPP) of the SBA, the defendants falsely and grossly overstated the number of employees and payroll at their nail salons and other businesses through fraudulent and doctored payroll and tax records in order to obtain larger loans. Giving back to the community through a variety of venues & initiatives. complaint (20-mag-12908). For instance, the department may decline cases involving smaller-dollar amounts, especially in busier U.S. attorneys offices around the country, Grossman said. The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty. Given the focus of the PPP to support employees during the COVID-19 pandemic, the Robinson Bradshaw firm wrote last May, it is easy to imagine how a dissatisfied employee observing imperfect business conduct in securing a PPP loan or applying loan proceeds could use that insider information to bring a qui tam action under the FCA.. Copyright 2020 WAFB. judy norton children; court ordered community service california The Justice Department has accused numerous defendants of using Paycheck Protection Program loans for unlawful purposes, such as purchasing private planes, sports cars, and taking pricey trips to Las Vegas casinos. BATON ROUGE, La. Indeed, on the day lenders began processing applications for Paycheck Protection Program loans last year, Small Business Administration Inspector General Hannibal Mike Ware issued a white paper outlining lessons learned from previous stimulus loan programs. In Louisiana, a federal grand jury recently indicted a Plaquemine woman named Lestreonia Rodrigue on fraud charges. Since last October, when POGO published a report examining trends in Paycheck Protection Program loan fraud at the programs six-month mark, several eye-popping cases of alleged fraud have emerged. Another large identity theft case led to charges against Jeremie Saintvil of Delray Beach, Florida in March. Report it to the Small Business Administrations with just a few clicks. One St. Andrews Plaza - New York, NY 10007, Three Family Members Arrested for Misrepresenting Employee Payroll Figures to Receive COVID-19 Loan Funds for Chain of Family-Owned Nail Salons in New York Metropolitan Area and Other Businesses, James Margolin, Nicholas Biase Click here to report information on Amazon warehouses. They allegedly exploited a program designed to provide vital funding for small businesses that are legitimately struggling in the midst of the pandemic. AGs Office announces more than 50 arrests connected to Paycheck Protection Program fraud. The PPP loan forgiveness is not subject to Louisiana state income tax. The loans have to be repaid with low interest. During the programs first round, the Small Business Administration issued 5.2 million loans between April and August 2020. Both programs lacked basic anti-fraud safeguards and the Small Business Administration exercised insufficient oversight, according to the agencys watchdog, the Government Accountability Office, and congressional committees that have investigated the programs. Vance's (R-Ohio) call for a Paycheck Protection Program (PPP)-style plan to help workers and businesses affected by the East Palestine train . Search arrest records and find latests mugshots and bookings for Misdemeanors and Felonies. He allegedly sought to obtain a total of more than $1.5 million in Paycheck Protection Program loans, at least $937,000 of which he successfully obtained. The addresses listed for the two companies, according to SBA loan data, also do not match the addresses in the states corporation recordsyet another sign of potential fraud. Gaetz has denied the allegations and Greenberg has pleaded not guilty, although Greenbergs attorney and a prosecutor have said in court that he may be striking a plea deal soon. Aqeel used some of the proceeds to purchase a Lamborghini sports car, according to the Justice Department. Loans through that program were directly processed by the Small Business Administration, while in the Paycheck Protection Program, loans were primarily processed by banks and other lenders. Thats because, at least in part, its optional for loan applicants to supply that information. NEW ORLEANS, LOUISIANA United States Attorney Duane A. Evans announced today the indictment of SHARNAE EVERY (EVERY), age 27, of Houston, Texas, who was charged with one (1) count of Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 1349 and two (2) counts of Mail Fraud in violation of Title 18, United States Code, Section 1341. Ms. Strauss praised the investigative work of the SBA-OIG, FBI, and IRS-CI, and noted that the investigation remains ongoing. Compare the spread of the infection with other areas in the U.S. Data is available, but its reliability for the purpose of assessing whether Paycheck Protection Program loans are reaching the underserved communities that Congress wanted prioritized is limited because the demographic data is incomplete. Public Service Announcement on Sexual Assault in Public Housing. A locked padlock More than half of that amount$246 millionactually went to accused fraudsters. Lock The prosecution of this case is being handled by the Offices Complex Frauds and Cybercrime Unit. There is abundant evidence that there was too little upfront vetting of loan applications in both the Paycheck Protection Program and Economic Injury Disaster Loan program. Using a telemarketing scheme called My Buddy Loans, the telemarketing scheme exploited those seeking assistance during the COVID pandemic, including many who were over the age of 55, according to a Small Business Administration inspector general agent quoted in a Justice Department press release. Money into accounts controlled solely by them bookings for Misdemeanors and Felonies Americans. Returns and payments are due Monday, May 17, 2021 even lower than that.! Be repaid with low interest loan scam cases get the national headlines, federal prosecutors are after! 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