And these cases are just the beginning. Paul and Michelle Kwak were charged with conspiracy to commit wire fraud, wire fraud, and money laundering. Her trial is scheduled for July 28, 2022. PDF President and Chief Executive Officer Cross River Bank 400 Kelby St Mr. Malik pleaded guilty on the same day to conspiracy with a five-year maximum sentence, and he is also scheduled to be sentenced on August 8, 2022. Monika Jaworska was charged with conspiracy to commit bank fraud and conspiracy to commit wire fraud. On March 21, 2022, he was sentenced to 188 months in prison, and he filed a notice of appeal on March 29, 2022. Andre Clark was charged with conspiracy to commit wire fraud and bank fraud, wire fraud, and bank fraud. The Government has also indicted Mr. Gaughan in a separate, unrelated case involving allegations that he defrauded his employer. For example: trucking , hospice , television , Kasowitz Benson Torres , 90210 , Sole Proprietorship 11.5M. The case was brought in Atlanta, Georgia. The case was brought in Alexandria, Virginia. The Government filed a criminal complaint on October 11, 2021. Ms. Falgoust pleaded guilty to an information on July 22, 2021. Ana Soto was charged with several counts of wire fraud, false statements on loan applications, and money laundering. On February 1, 2022, Mr. Redding was sentenced to a total of 7 years in prison. On May 11, 2021, Mr. Fayne pleaded guilty to conspiracy to commit wire fraud, bank fraud, and making false statements on a loan application. Lauren Duhart, Joshua Smith, Steve Lewis, Christopher Agard, Henry Duffield, Jeremy Latourneau and Derick Keane were charged with attempt and conspiracy to commit mail fraud, and money laundering. On December 3, 2020, Mr. Fiedler pleaded guilty to conspiracy to commit wire fraud. Woods and Gilchrist are both licensed attorneys. All defendants have pled guilty. The Government alleged that Mr. Ms. Jackson pleaded guilty to both counts. 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. News The Government alleged that Mr. Eustache submitted 13 loan applications seeking over $2.1 million in COVID-19 relief funds. The case was brought in Dayton, Ohio. Together, more than 5.5 million PPP loans were approved totaling more than $557.8 billion. Princess Terry was charged with wire fraud, making false statements to a bank, and money laundering. Mr. Charno was sentenced to 24 months in prison on May 23, 202. The U.S. Small Business Administration's watchdog has been asked to investigate Potomac Radio, owner of WCRW, after receiving more than $100,000 through the Paycheck Protection Program (PPP). The case was brought in Green Bay, Wisconsin. The case was brought in Raleigh, North Carolina. Lawal pleaded guilty to one count of conspiracy to commit wire fraud in November 2021, and Raji pleaded guilty to conspiracy to commit access device fraud, access device fraud, and aggravated identity theft on March 9, 2022. Our firm helps people who are being charged or investigated for alleged fraud in applying for or taking out PPP and EIDL loans funded by the CARES Act. The Government alleged that Mr. Hines submitted fraudulent loan applications and obtained approximately $3.4 million in COVID-19 relief funds. Chanchikyan has pleaded not guilty, and his trial is scheduled for October 4, 2022. On October 25, 2021, Mr. Frazier pleaded guilty to two counts of wire fraud. Mr. Kindambu pleaded guilty to one count of bank fraud. 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 Government alleged that the couple conspired to submit fraudulent loan applications seeking over $5.1 million in COVID-19 relief funds. Keishon Brown was charged with one count of wire fraud. Richard Ayvazyan, Marietta Terabelian, Artur Ayvazyan, Tamara Dadyan, Manuk Grigoryan, Arman Hayrapetyan, Edvard Paronyan, and Vahe Dadyan were charged with conspiracy to commit bank and wire fraud, wire fraud, bank fraud, conspiracy to commit money laundering, money laundering, and other charges. Ms. Terry was sentenced to 65 months in the prior healthcare fraud scheme. Wyleia Williams, James Stote, and Ross Charno were charged with conspiracy to commit wire fraud and bank fraud, wire fraud, and bank fraud. 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 Jones submitted fraudulent loan applications obtaining over $85,000 in COVID-19 relief funds. The case was brought in Alexandria, Virginia. The Government alleged that Mr. Schampers filed one fraudulent loan application seeking almost $300,000 in COVID-19 relief funds. Mr. Bischoff pleaded guilty on November 23, 2020. Mr. Criss pled guilty and was sentenced to 10 months in prison on November 1, 2021. Hackstadt pleaded guilty on May 19, 2022, and is scheduled to be sentenced on October 6, 2022. The Government alleged that Mr. Benlevi submitted 27 fraudulent loan applications seeking $27 million in COVID-19 relief funds. Rowlando Hatter, Jr. and Clyde Anthony Parker, Jr, were charged with conspiracy to commit mail and wire fraud, mail fraud and aggravated identity theft. He is scheduled to be sentenced on August 15, 2022. Next on our list is a South Florida couple who, authorities say, filled their bank accounts with over $800,000 in PPP loans and over 200,000 in Economic Injury Disaster Loans. The Government alleged that Hatter submitted fraudulent unemployment insurance applications obtaining approximately $3 million in COVID-19 relief funds. Audri Ford-Victory was charged with one count of wire fraud conspiracy. Fraud lessons from 3 rounds of paycheck protection program The case was brought in Providence, Rhode Island. Valesky Barosy was charged with wire fraud, money laundering, and aggravated identity theft. The Government alleged that Mr. Oudomsine submitted a fraudulent loan application and obtained $85,000 in COVID-19 relief funds. The Government alleged that Mr. Argires submitted fraudulent loan applications and obtained more than $1.1 million in COVID-19 relief funds. Teamwork and Farms. 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. Does something look fishy to you? On June 21, 2021, Arman Hayrapetyan pleaded guilty to one count of money laundering conspiracy. The Government alleged that Mr. and Ms. Collins submitted fraudulent loan applications seeking approximately $1.9 million in COVID-19 relief funds. The Government alleged Zhang through Cloud Optimization, LLC submitted fraudulent loan applications obtaining approximately 41,525,000.00 in COVID-19 relief funds. The case was brought in Atlanta, Georgia. The case is pending. The case was brought in Ft. Lauderdale, Florida. The case was brought in Los Angeles, California. Fouzi Darakhshan pleaded guilty on May 31, 2022 and is scheduled to be sentenced September 16, 2022. Banks will likely be targeted in the coming months for their roles with the Paycheck Protection Program and other lending during the pandemic. Mr. Augustin pleaded guilty to one count of conspiracy to commit wire fraud on December 27, 2021. Atlanta man sentenced for Paycheck Protection Program (PPP) fraud 3,264,095 The case was brought in Philadelphia, Pennsylvania and it is currently pending. Joshua Bellamy was charged with conspiracy to commit wire fraud and bank fraud, wire fraud, and bank fraud. The Justice Department has brought criminal charges against at least 209 individuals in 119 cases related to Paycheck Protection Program (PPP) fraud since banks and other lenders began processing loan applications on behalf of the Small Business Administration on April 3, 2020. He was sentenced to 24 months in prison on November 17, 2021. On October 18, 2021, he was sentenced to 10 months probation. This case was brought in Albany, New York. Rafael Martinez was charged with wire fraud, bank fraud, false statements, aggravated identity theft, and other related charges. On October 21, 2021, Ms. Redding was sentenced to 27 months in prison. On November 9, 2021, Mr. Boncimino pleaded guilty to one count of money laundering. The Government alleged that Mr. Okojie submitted at least 8 fraudulent loan applications for companies that did not exist seeking millions in COVID-19 relief funds. The case was indicted in November 2021 and the defendants pleaded not guilty at their arraignment. On September 29, 2021, Charles Hill pleaded guilty to conspiracy to commit wire fraud, and he was sentenced to probation for 5 years, with the first 27 months to be served on home detention on January 12, 2022. Johnson Eustache was charged with wire fraud and false statements. Mr. Yates pleaded guilty on May 6, 2022, and sentencing has not been scheduled. On March 2, 2022, Ms. Martins pleaded guilty to the charges and is scheduled to be sentenced on August 4, 2022. Dr. Joseph has pleaded not guilty. The case was brought in Tucson, Arizona. On December 21, 2021, she was sentenced to 18 months in prison. The case was brought in Miami, Florida. The case is brought in Atlanta, Georgia. The Government alleged that Mr. Sissoko submitted fraudulent loan applications to obtain over $7.25 million in COVID-19 relief funds, which he then allegedly misappropriated on personal expenses. Mr. Barosy has pleaded not guilty, and his trial is currently scheduled for September 12, 2022. Because PPP lending is closed to new applications, SBA's challenge is to effectively handle potentially fraudulent PPP loans to reduce the risk of financial loss and ensure only eligible borrowers receive forgiveness in accordance with program requirements. Smith pleaded guilty and was sentenced to 20 months in prison on December 16, 2021. Mr. Cotton pleaded guilty to one count of conspiracy to commit mail fraud on March 4, 2022, and his sentencing is scheduled for September 2, 2022. The Government alleged that Hackstadt submitted fraudulent loan applications and obtained over $250,000 in COVID-19 relief funds. The Government alleged that the father-son duo submitted fraudulent loan applications seeking over $550,000 in COVID-19 relief funds. On September 16, 2021, Mr. Shah was sentenced to 31 months in prison. Anuli Okeke was charged with conspiracy to commit wire fraud and bank fraud, wire fraud, bank fraud, and money laundering conspiracy. On June 2, 2021, Mr. Smith was sentenced to 57 months in prison. The case was brought in Los Angeles, California. On September 27, 2021, he was sentenced to 30 months in prison. Ms. Duhart pled guilty and was sentenced to 3 years in prison on February 22, 2022. The Paycheck Protection Program (PPP) is part of a massive stimulus package created by Congress known as the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The Government alleged that Mr. Fitzgerald-Holley submitted fraudulent loan applications and obtained approximately $305,854.00 in COVID-19 relief funds. Fahad Shah was charged with wire fraud, making false statements to a bank, and money laundering. Search for PPP loan applications by organization, lender, zip code and business type. Mr. Mohan pleaded guilty to wire fraud and money laundering. Ms. Walker has pleaded guilty. . Tonye Johnson was charged with conspiracy to commit wire fraud and bank fraud, wire fraud, and bank fraud. On November 15, 2021, Richard Ayvazyan was sentenced to 17 years and Marietta Terabelian was sentenced to 72 months in prison. The case was brought in Milwaukee, Wisconsin. The other defendants are scheduled for trial on September 20, 2022. Brandon Ridge was charged with brank fraud, wire fraud, and money laundering. More than 15% of PPP loans had at least one indication of potential fraud. The case was brought in Los Angeles. In February He was sentenced to 51 months in prison. Recent reports have found that FinTechs and their bank partners handled 75 percent of the approved PPP loans that have been connected to fraud by DOJ, despite facilitating just 15 percent of PPP loans overall. Eric Shibley was charged with wire fraud, bank fraud, and money laundering. Ms. Miller has pleaded not guilty, and trial is scheduled for December 6, 2022. To date, all defendants except for Mr. Crosby have pleaded guilty to at least one of the counts of the indictment. The Government alleged that Mr. Chapon submitted fraudulent loan applications through her corporate entities Heavenly Tahoe Properties, Desert Sun Events, and Tahoe Weddings and Events obtaining approximately $596,231.00 in COVID-19 relief funds. On September 18, 2020, Mr. Butziger pleaded guilty to conspiracy to commit bank fraud. The case was brought in Seattle, Washington. Charmaine Redding was also charged separately and pleaded guilty to one count of conspiracy to commit fraud. The Government alleged that Christopher and Erin Mazzei submitted fraudulent loan applications and obtained over $1.3 million in COVID-19 relief funds. On December 8, 2021, he was sentenced to 24 months in prison. Darius McCants was charged with attempt and conspiracy and multiple counts of wire fraud. Mr. Welch pled guilty and was sentenced to 5 years of probation on June 15, 2021. The case was brought in Fort Lauderdale. The Government also alleged that after Rabbitts businesses received the loans, Aguilar created fake payroll companies and accepted checks from Rabbitts businesses indicating that they were for payroll purposes. Cosmetics, Beauty Supplies, and Perfume Stores, Specialized Freight (except Used Goods) Trucking, Local, Fresh Fruit and Vegetable Merchant Wholesalers, Mens and Boys Cut and Sew Apparel Manufacturing, Independent Artists, Writers, and Performers, Agents and Managers for Artists, Athletes, Entertainers, and Other Public Figures, Meat and Meat Product Merchant Wholesalers, All Other Miscellaneous Store Retailers (except Tobacco Stores), All Other Professional, Scientific, and Technical Services, Drycleaning and Laundry Services (except Coin-Operated). When the Paycheck Protection Program launched during the pandemic shutdowns of spring 2020, it immediately became a chaotic free-for-all. The case was brought in Washington, D.C. On March 2, 2022, Mr. Gaughan pleaded guilty to wire fraud in one case and engaging in monetary transactions in the other case. Arena pleaded guilty and was sentenced to 60 months in prison on June 8, 2022. $341 Million in PPP Fraud So Far, and Counting - Small Business Trends Soto pleaded guilty on February 24, 2022, and is scheduled to be sentenced on August 3, 2022. On November 2, 2021, she was sentenced to 78 months in prison. On November 15, 2021, he was sentenced to 51 months in prison. The case was brought in Foley Square, New York and is pending. On May 20, 2021, Mr. Suber was sentenced to 24 months in prison. On September 15, 2021, Mr. Fayne was sentenced to 210 months in prison. The case was brought in Washington, D.C. Tarone La Dale Woods was charged with false statements. The Government alleged that Mr. Bearden submitted fraudulent loan applications seeking about $60,000 in COVID-19 relief funds. Mr. Grigor Garibyan was charged with two counts of theft of government property. Chad Schampers was charged with one count of wire fraud and money laundering. Ms. Jaworska pleaded guilty to one count of conspiracy to commit bank fraud. The Government alleged that Ms. Lawson and Ms. Quarterman submitted fraudulent loan applications on behalf of the other defendants seeking over $700,000 in COVID-19 relief funds. The Government also alleged that Ms. Miller submitted fraudulent requests for unemployment benefits. The Government alleged that Mr. Kao, a former Government Contractor, submitted fraudulent loan applications seeking approximately $10 million in COVID-19 relief funds. Federal prosecutors and criminal investigators from various federal agencies are actively looking for possible PPP loan fraud, EIDL loan fraud, and other CARES Act violations in an attempt to recover money that may have been fraudulently obtained from COVID-19 relief programs. Mr. Stote pleaded guilty on January 3, 2022 and was sentenced to 120 months in prison on May 6, 2022. The case was brought in Philadelphia, Pennsylvania. Our federal defense lawyers are representing companies nationwide in PPP loan fraud audits and investigations during the COVID-19 crisis. The Government alleged that Mr. Shah submitted fraudulent loan applications seeking more than $3 million in COVID-19 relief funds. Mr. Israyelyan pleaded guilty on March 18, 2022, and his sentencing hearing is currently scheduled for September 19, 2022. Quincy Doss was charged with two counts of wire fraud. Mr. Garcia pleaded guilty to one count of conspiracy to commit wire fraud on July 6, 2021. Mr. Henley pleaded guilty to one count of bank fraud. Oludamilare Olugbuyi was charged with making false statements to a bank. The Government alleged that Chanchikyan submitted fraudulent loan applications seeking approximately $345,000 in COVID-19 relief funds through his home health agency, Gentle Touch Home Health Care Inc. This case was brought in Milwaukee, Wisconsin. Gregory J. Blotnick was charged with eight counts of wire fraud and six counts of money laundering. Maurice Kamgaing was charged with wire fraud in relation to a major disaster or emergency benefit, making false statements to a bank, and money laundering. Most of the court clerk's employees who are under investigation had gotten PPP loans of about $20,000 by saying they had made at least $100,000 from an outside business in the year before they filed their applications, Murphy-Aguil said. On May 14, 2021, Mr. Clark pleaded guilty to one count of conspiracy to commit wire fraud. Don Cisternino was extradited from Croatia to face wire fraud, identity fraud, and illegal monetary transaction charges. Mr. Shah has pleaded not guilty. Jorge Abramovs was charged with bank fraud, false statement to a financial institution, and monetary transactions in criminally derived property. The Government alleged that Mr. Ridge submitted fraudulent loan applications seeking almost $500,000 in COVID-19 relief loans, of which he obtained $160,000. The Government alleged that Smith submitted fraudulent loan applications seeking over $212,000 in COVID-19 relief funds. She is scheduled to be sentenced on December 6, 2021. However, the participation of FinTechs in the PPP may have led to increased incidents of fraud. On June 16, 2021, Mr. Stewart was sentenced to 21 months on each count, to run concurrently. The case was brought in Seattle, Washington. On February 3, 2022, she was sentenced to 44 months. Data last refreshed on 1/31/2022. On June 23, 2022, she was sentenced to 3 years of probation with the first 6 months to be served on home confinement. Christopher Mazzei and Erin Mazzei were charged with conspiracy to commit wire fraud, conspiracy to launder money and money laundering. Andrew Tezna was charged with one count of bank fraud. Christopher Hayes was charged with making a false, fictitious, or fraudulent claim to the Government. 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. The Government alleged that Ms. Hart, a former Deputy Sheriff, made a false statement to the SBA in her PPP application. The case was brought in Norfolk, Virginia. The Government alleged that Ms. Kirkland submitted a fraudulent loan application seeking over $66,000 in COVID-19 relief funds. On March 25, 2022, Mr. Benlevi was found guilty on all counts at trial. The Government alleged that Mr. Crowther submitted fraudulent loan applications seeking over $2 million in COVID-19 relief funds. Attorneys, including the Fraud Section, have resulted in a variety of charges, including wire fraud (18 U.S.C. Find data and reports related to the Paycheck Protection Program (PPP). The case was brought in Milwaukee, Wisconsin. Mack Devon Knight was charged with two counts of wire fraud, one count of making a false statement, one count of making a false statement on a loan application, and one count of money laundering. Alfred Nevis was charged with wire fraud, aggravated identity theft and money laundering. The case was brought in Miami, Florida. Mr. Doss pleaded guilty on June 27, 2022, and is scheduled to be sentenced on October 27, 2022. The case was brought in Portland, Oregon. Around 1.8 million of the PPP's 11.8 million loans showed signs of fraud, according to an academic working paper cited by The New York Times. 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. Damilola Lawal and Idowu Raji were charged with multiple counts of conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and related charges. The case was brought in Boston, Massachusetts. Raji was sentenced to 70 months in prison on Mary 20, 2022, and Lawals is scheduled to be sentenced on August 24, 2022. On January 20, 2022, he was sentenced to 60 months in prison. The Government alleged that Williams and Herbert conspired with other individuals to file more than 40 fraudulent loan applications seeking approximately $11.5 million in COVID-19 relief funds, obtaining approximately $8.7 million, and shared the proceeds with one another. Darius Hollis was charged with wire fraud.