They have never said they won't seek prison time for below a minimum dollar amount. A total of 73,824 loans were distributed to Louisiana leading to a reported 799,664 jobs being retained. For example, in the city of Gonzales, there were 70 people claiming to own a barbershop who applied for loans. April 15, 2021. An official website of the United States government. how to get to quezon avenue mrt station Uncovering hot babes since 1919. 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. The Department of Justice, and in particular my office here in the Middle District of Louisiana, is committed to investigating and prosecuting those who abuse the system for personal gain and will use every resource at our disposal to protect those federal dollars and the businesses they are intended to help. Under the Coronavirus Response and Relief Supplemental Appropriations Act, passed as part of the Consolidated Appropriations Act of 2021, (CARES II), individuals began receiving automatically a second round of Economic Impact Payments of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child beginning in December. Aqeel and others in the scheme allegedly used loan funds to pay individuals they claimed were employees but were actually fake employees, according to a court filing. But, in contrast to the False Claims Act where the reward is a minimum 10% of the recovery, FIRREAs whistleblower reward is capped at $1.6 million. But, he added, the CARES Act removed that control, calling it a pivotal change.. Mr. Aqeel asserts his presumption of innocence and demands the United States prove their allegations beyond a reasonable doubt. Mingledorff also said, The case is in the pretrial phase of litigation. The largest loan paid out was $20,833. Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application. Shes accused of making up fake businesses to collect more than $20,000 through a PPP loan and another $500,000 in prepaid debit cards through unemployment claims. 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. An indictment includes text and email messages involving creating tax records for some of the companies. Jean Rabbittand Kevin Aguilarwere charged with bank fraud and conspiracy to engage in monetary transaction charges. Official websites use .gov . More due diligence on the part of lenders or the Small Business Administration could have prevented at least some instances of fraud, especially when applicants appear to have inflated or fabricated payroll expenses or used defunct or bogus companies to illicitly obtain loans. In certified submissions to the federal government, the familys ministry claimed a substantial operation with 486 employees, a monthly payroll of over $2.76 million, and revenue exceeding $51 million in 2019. The case against EVERY began as a result of a referral from the COVID-19 Pandemic Response Accountability Committee (PRAC) regarding possible fraudulent Paycheck Protection Program loans (PPP). We dont have the capacity to work everything that comes in, Grossman told POGO. All rights reserved. The only way you can reverse those things is by understanding the metrics behind it and to have real goals around them.. In addition to allegedly submitting a fraudulent PPP loan application for a fictious [sic] business in his own name, Saintvil also allegedly stole the identities of eight elderly individualsseven of whom were residents of senior living facilities and one who was related to him, according to a Justice Department press release. More due diligence on the part of lenders or the Small Business Administration could have prevented at least some instances of fraud. The program worked like this. But in March 2021, the Small Business Administration Office of Inspector General issued a report that found that lenders last year issued more than one Paycheck Protection Program loan to 4,260 borrowers with the same tax identification number and borrowers with the same business name and address. Those loans were worth a total of $692 million. Lawmaker wants police trained to handle Alzheimers, dementia patients, Health Minute: First at-home flu and COVID test authorized. Vance's (R-Ohio) call for a Paycheck Protection Program (PPP)-style plan to help workers and businesses affected by the East Palestine train . If a company is eligible for a loan and submits certifications in good faith, that company will have nothing to fear from the Civil Division. Some of these qui tam lawsuits are traditional whistleblower cases, but others involve individuals who are slicing and dicing the data that has been made available about loans, according to Grossman. Law enforcement insiders say many more pandemic loan fraud cases will be brought in the months and years ahead. However, both Kennedy and Ricks say the good the program did far outweigh any possible fraud. Alabama Arkansas Arizona California Colorado Florida Georgia Idaho Illinois Indiana Iowa Kentucky Kansas Louisiana Maine Maryland Michigan Minnesota Missouri Mississippi Montana Nebraska Nevada New Hampshire New Jersey New Mexico North Carolina Oklahoma . If you look at the last round [of PPP] and you look at it on a time series, it almost looks like the largest businesses and businesses in high-income neighborhoods received money first and smaller businesses and businesses in low-income neighborhoods received money last, the Small Business Administrations Michael Roth told Politico in March. Additionally, CARES II provides up to $300 in weekly supplemental unemployment benefits. So now, he says agencies must go after anyone who might be taking money theyre not entitled to. 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. The oversight failures of the last year have become increasingly clear, eventually leading to changes. NGUYEN and DAT HO will be presented in United States District Court for the Eastern District of New York in connection with these and other unrelated charges. 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. We are concerned only with actionable fraud. He added that, in selecting enforcement targets, we will follow the law, and we will not pursue companies that access CARES Act programs in good faith and in compliance with the rules.. Check out bed occupancy rate of hospitals. If convicted, EVERY faces a maximum penalty of twenty (20) years, followed by a term of supervised release for up to three (3) years, a fine up to $250,000.00, or twice the gross gain to the defendant, or twice the gross loss to any victim, and a $100.00 mandatory special assessment fee, per count. The False Claims Act will play a central role in the Departments pursuit of COVID-19 related fraud, Michael Granston, a Justice Department deputy assistant attorney general, said in December. The cases involve attempts to steal a total of more than $175 million from the program, with actual losses to the federal government totaling more than $70 million, the DOJ reports. According to the House Select Subcommittee on the Coronavirus Crisis, the SBA Office of Inspector General has received nearly 750,000 referrals of suspected identity theft related to the program over the last year. (Eligible companies and nonprofit organizations can apply for and receive both Paycheck Protection Program and Economic Injury Disaster loans.). But the government could have implemented these safeguards from the beginning, which may have prevented significant levels of apparent fraud in the program. In less than six months, more than 50 people have been charged with allegedly committing fraud in connection with the program. The cases involve attempts to steal a total of more than $175 million from the program, with actual losses to the federal government totaling more than $70 million, the DOJ reports. The Department of Justice confirms they are looking into reports of PPP fraud across the nation. Based on the fraudulent PPP loan applications submitted by NGUYEN, VICTORIA HO, and DAT HO, a total of more than $13 million in PPP loans were approved for the Victoria Companies and approximately $7.8 million in loan proceeds were disbursed into bank accounts controlled by NGUYEN, DAT HO, and other family members. (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. EVERY received these funds into her Current account, her Cash App account, or into her boyfriends Current account. 5 min read. In 2020, applicants could not lawfully receive more than one Paycheck Protection Program loan. A check of Floridas Division of Corporations database would have revealed the companies had just been reinstated. Act 12 of the 2020 First Extraordinary Session of the Louisiana Legislature provided for a one-time $250 rebate for eligible workers earning $50,000 per year or less, who spent at least 200 hours responding to or mitigating the COVID-19 crisis from March 22, 2020, through May 14, 2020. You can search the SBA's entire PPP loan data below. Between May and October 2020, financial institutions filed more than 21,000 and 20,000 suspicious activity reports (SAR) related to PPP and EIDL, respectively, according to the Government Accountability Office. Under the False Claims Act (FCA) as well as the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), either the government or whistleblowers with non-public information can initiate civil enforcement actions. From at least in or about April 2020 through at least in or about June 2020, NGUYEN, VICTORIA HO, and DAT HO engaged in a scheme to submit online applications to at least two financial institutions for a total of over $13 million in government-guaranteed loans for the Victoria Companies through the SBAs PPP. After the defendants learned that a hold was placed on bank accounts of the Victoria Companies that received PPP loans issued by one financial institution due to suspicion of fraudulent activity, one of the defendants conducted Internet searches for PPP Fraud, PPP Loan Fraud Arrests, and How to get rid of a PPP Loan. The defendants thereafter withdrew the applications for and/or repaid the PPP loans for the Victoria Companies issued by that financial institution. louisiana ppp loan arrestsanxiety support groups columbia, sc Africa -China Review Africa -China Cooperation and Transformation fidelity express money order refund thamani ya rupia ya mjerumani The Economic Injury Disaster Loan program is longstanding, and until recently the Small Business Administration limited these loans to $150,000 (last month it raised the cap to $500,000). Summary of PPP Loans in Louisiana. 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. katherine noelle wyman; cape breton post obituaries 2022. location symbol text in word; list of female jockeys australia; mike conley house columbus ohio address You have to understand from the lenders perspective, really, theyre just looking at income. 6 AVG COMPANY SIZE. SOUTHERN MAGNOLIA LANDSCAPING LLC. In one of the most complex cases to emerge since POGOs original analysis, at least seven individuals were indicted in a scheme that allegedly involved over 80 applications seeking a total of $30 million in Paycheck Protection Program loans. In the three decades since the laws passage, there have been only six whistleblower settlements involving FIRREA, yielding $19.9 billion in recoveries, but only $9.3 million in rewards to whistleblowers, according to Whistleblower Network News. Has the curve flatten in my town? This case was brought in New Orleans, Louisiana. As former federal prosecutor Tarek Helou told the Wall Street Journal, The scandal is whats legal, not whats illegal., Lenders may also be more likely to face civil enforcement than criminal enforcement. We will also begin processing paper returns downloaded from the LDR website at, The federal Coronavirus Aid, Relief and Economic Security (CARES) Act provided Economic Impact Payments of $1,200 for qualifying individuals and $2,400 for qualifying married couples, with an additional $500 per dependent child. An attorney for Aqeel, Tommy T. Mingledorff, told POGO by email that these allegations are denied. Sen. John Kennedy says in the rush to get help to people in need as quickly as possible, Congress didnt have time to build many safeguards against fraud into the program. POGOs analysis of the first full years worth of Paycheck Protection Program fraud cases found that in at least: Some of these cases involve multiple defendants. But according to the Justice Department, neither company paid anywhere near the purported amounts and had few if any employees. Kindambu pleaded guilty in January. Public Information Director Federal investigators want you to speak up about PPP fraud, Federal investigators want you to speak up about PPP Fraud, LSU WR Malik Nabers arrested in New Orleans; prosecutors refuse to charge with condition, LPSO: Deputy arrested, terminated after making harassing phone calls, TikTok sets new default time limits for minors, Fight involving 9 people on Southerns campus leads to 1 arrest. They allegedly exploited a program designed to provide vital funding for small businesses that are legitimately struggling in the midst of the pandemic. Generally, cases where there is any substantial gray areasuch as a lack of unambiguous evidence of fraud or when it wasnt clear what a government rule requiredare far more likely to lead to civil enforcement, or to no enforcement. The DOJ says this ill-gotten money was in many cases used to buy luxury personal items like cars, homes, vacation trips, and jewelry. Two of the companies, Symbiont Retailers and Horizon Enterprises, were not in good standing before the Paycheck Protection Program began. EVERY falsely certified that the applications and the information provided in the supporting documents were true and accurate when she electronically submitted the fraudulent PPP loan applications. On applications for loans for two companies, Greenberg Media Group and DG3 Network, Greenberg allegedly lied about not being under indictment despite having been arrested by federal agents and charged just days earlierwith the indictment a matter of public record. An Archdale man was arrested after authorities say he falsely received more than $1.5 million in COVID-19 relief money through the Paycheck Protection Program. edgewater hotel haunted; can uk consultant doctors work in usa; is spitfire a compliment The Veterans Administration, Office of the Inspector General, is an active member of the PRAC Fraud Task Force. Find out how you can get involved and stay up to date with our work. Small Business Administration management flagged loans for at least one of 35 reasons, such as the recipient was created after the cutoff date of February 15, 2020, or the recipients owner had a criminal record, potentially rendering the recipient ineligible. Byron.Henderson@la.gov, On Friday, Feb. 12, LDR will begin accepting tax returns through, , the states free, electronic tax filing application; or through commercially available tax filing software. Its the first public case of fraud in these pandemic loan programs attributed to corruption within the agencys own ranks. In email and text exchanges, defendants acknowledged that a number of the companies did no legitimate business, disqualifying them from receiving the loans. The Small Business Administration has sent 1.34 million referrals related to Economic Injury Disaster loans to its office of inspector general, which is tackling these and Paycheck Protection Program fraud cases in coordination with a host of other law enforcement agencies. AGs Office announces more than 50 arrests connected to Paycheck Protection Program fraud, LSU WR Malik Nabers arrested in New Orleans; prosecutors refuse to charge with condition, Mini workshop to bust myths surrounding sexual health, Experts give tips to prepare for daylight saving time, Health Minute: First at-home flu and COVID test authorized. I want to thank the U.S. Attorneys Office and our law enforcement partners for their dedication and commitment to seeing justice served., FBI Assistant Director William F. Sweeney Jr said: The benefits offered by the CARES Act for PPP loans were established to help small businesses survive during the pandemic. Sah submitted falsified tax and payroll documentation in which he claimed to have numerous employees and hundreds of thousands of dollars in payroll expenses, according to a Justice Department press release, but none of the businesses he sought loans for had any employees. According to the Justice Department, Didier Kindambu obtained two loans by creating fraudulent payroll documentation for each business.. Qui tam complaints are filed under seal Funds disseminated through this program are subject to Louisiana state income tax. Showing 50 of 9,060 results. Not all the blame can be placed at the Small Business Administrations feet. Greenbergs insider was a loan officer who began working for the agency in May 2020. Based on the data, between $5,589,989,154 and $10,528,439,154 have been loaned through the Payroll Protection Program to businesses in Louisiana. Theres a lot of red flags that they look at in the data to help us determine if its something we need to look at deeper.. When they believe they have unearthed sufficient evidence to allege the government has been defrauded, these individuals file qui tam lawsuits, Grossman said. | 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. If youre going to steal money, finite resources from people who need them, then, by God, were going to prosecute you.. For more information on the Department of Justices response to the pandemic, please visit https://www.justice.gov/coronavirus. The United States Attorneys Office would also like to acknowledge the assistance of the Veterans Administration, Office of the Inspector General; United States Department of Labor, Office of the Inspector General; United States Department of Homeland Security, Homeland Security Investigations; and the United States Secret Services Cyber Fraud Task Force, consisting of the Jefferson Parish Sheriffs Office, Lafourche Parish Sheriffs Office, Thibodeaux Police Department, and the Louisiana Bureau of Investigation with this matter. In Louisiana, a federal grand jury recently indicted a Plaquemine woman named Lestreonia Rodrigue on fraud charges. Does something look fishy to you? All totaled, in that city of 43,000 people lenders approved $1.3 million dollars just for barbershop owners. This table shows the top 5 industries in Louisiana by number of loans awarded, with average loan amounts and number of jobs reported. While the Small Business Administration could be doing more with data on the Economic Injury Disaster Loan program, the agencys independent watchdog has embraced this work. An estimated 1% of that 2009 stimulus was lost to fraud (some claim the rate is even lower than that). Acting U.S. Attorney Audrey Strauss said: As alleged, these defendants conspired to rip off the SBAs COVID-relief small business loan program and financial institutions by lying about how many people they employed in their family business and how much they paid those employees. Complaints can also be filed online here. On March 30, the Justice Department unveiled new charges against Joel Greenberg, a former Florida tax collector. Nick Schwellenbach is a Senior Investigator at POGO. The forgivable loans were meant to cover payroll for employees and, later, other eligible expenses at a time when customers werent coming in. Does something look fishy to you? POGO was unable to reach Edwards before publication. 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