When we receive complaints on PPP and EIDL fraud, we immediately coordinate with the Department of Justice, to see what their interest is in the case. 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. Seven of the approved loans were processed by Cross River Bank, a top Paycheck Protection Program lender that closely allied itself with financial technology firms. 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. The oversight failures of the last year have become increasingly clear, eventually leading to changes. BATON ROUGE, La. Vance's (R-Ohio) call for a Paycheck Protection Program (PPP)-style plan to help workers and businesses affected by the East Palestine train . According to todays indictment, EVERY created a fictitious business called Natural Hair Afro, LLC, Houma, LA 70360 and used this fictitious business name on nearly all of the fraudulent PPP loan applications. (Eligible companies and nonprofit organizations can apply for and receive both Paycheck Protection Program and Economic Injury Disaster loans.). 61000. According to a court filing signed by a Secret Service agent, a family of four was behind a scheme So were trying to reverse that. PPP Loan Recipient List By State Louisiana 217,332 TOTAL PPP LOANS $12.2B TOTAL LOAN AMOUNT $56,095 AVERAGE PPP LOAN 6 AVG COMPANY SIZE Louisiana has a total of 217,332 businesses that received Paycheck Protection Program (PPP) loans from the Small Business Administration. 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. The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty. Report it to the Small Business Administrations with just a few clicks. In addition to helping head off further fraud, conducting robust data analysis could also help the Small Business Administration assess how well its relief programs are reaching small businesses in underserved communities, such as those owned by people of color. Find out how you can get involved and stay up to date with our work. Ryan Summers Horowitz, the Justice Departments inspector general, recently testified to a House panel examining COVID-19 loan fraud that a legislative reform could help address the problem of fraud in smaller dollar amounts. While not all of these new reports can be attributed to the government relief effort, they are a sizeable share of the increase., Similarly, a February report by the Pandemic Response Accountability Committee stated that Identity theft is on the rise and has been exploited by bad actors to obtain pandemic response funds, such as unemployment insurance benefits, PPP loans, and EIDLs., Grossman told POGO, There are also PPP and EIDL cases were aware of that are being investigated by state and local authorities, because my agents out in the field get calls from state police and local police departments, where they have received complaints from citizens on identity theft, for example.. If Congress amends the underutilized Program Fraud Civil Remedies Act, efforts by inspectors general to fight fraud in pandemic related spending would be enhanced, according to Horowitzs testimony. This table shows the top 5 industries in Louisiana by number . Thats more than 10 times the fraud recoveries five years after the 2009 stimulus became law. EVERY received these funds into her Current account, her Cash App account, or into her boyfriends Current account. More than a year after the pandemic brought much of the economy to a standstill, mounting fraud cases underscore how the Small Business Administrations (SBA) oversight of its massive taxpayer-backed lending programs proved to be inadequate as they became magnets for fraudsters. In December 2020, an independent auditor informed the SBA that, out of 5.2 million Paycheck Protection Program loans in 2020, the agency made over 2 million approved PPP loan guarantees worth some $189 billion potentially not in compliance with the law. Allegedly misrepresenting the number of employees on their payroll to obtain the funding, they deposited this money into accounts controlled solely by them. An official website of the United States government. They allegedly exploited a program designed to provide vital funding for small businesses that are legitimately struggling in the midst of the pandemic. Help us crowdsource fraud detection in the PPP program! According to the Justice Department, Didier Kindambu obtained two loans by creating fraudulent payroll documentation for each business.. In a case that garnered national attention, the U.S. Secret Service seized over $8.4 million in Paycheck Protection Program funds from a seemingly bogus ministry in Orlando, Florida that had no apparent operations at its physical location and a website filled with generic language taken from other religious organizations. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBAs PPP. Buried within the court filing are allegations that Greenberg bribed an unnamed Small Business Administration insider to fraudulently obtain nearly $433,000 in Economic Injury Disaster loans. U.S. Attorney's Office, Eastern District of Louisiana, Former Louisiana Woman Indicted for Preparing Over 110 Fraudulent PPP Loans Totaling Over $1.1 Million Dollars, 2_ecf_doc_1_-_sharnae_every_indictment_redacted_sanitized.pdf, Dr. Charles J. Southall, III Sentenced to 60 Months in Prison for Money Laundering, Obtaining Over $889,000 Through Fraud, New Orleans Man Sentenced for Theft and Sale of Motor Vehicle from Mississippi Car Dealership, Two More New Orleans Residents Sentenced in Staged Automobile Collision Scheme, Former Louisiana Woman Indicted For Preparing Over 110 Fraudulent PPP Loans Totaling Over $1.1 Million Dollars. Both the outgoing Trump administration and the Biden administration appear to have learned lessons from the fraud that occurred in 2020. But, he added, the CARES Act removed that control, calling it a pivotal change.. Normally, the office of inspector general receives between 700 and 800 hotline complaints or tips a year. With over 18 million Paycheck Protection Program loans and pandemic-related Economic Injury Disaster loans and advance grants approved over the last year, there is a sea of data on these programs. Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Amaleka McCall-Brathwaite, Eastern Region Special Agent-in-Charge of the Office of the Inspector General of the U.S. Small Business Administration (SBA-OIG), William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (FBI), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (IRS-CI), announced today the arrests of NGOC MANH NGUYEN, a/k/a Peter Nguyen, VICTORIA DIEUY HO, a/k/a Vicky Ho, and DAT TAT HO for a fraudulent scheme to obtain over $13 million in Government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. 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. He also opened bank accounts and lines of credit at financial institutions and credit card companies in the names of his elderly victims, according to the Justice Department. 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. If the borrower can prove they used the money to pay employees and eligible expenses, they can ask the SBA for loan forgiveness. Inaccuracies in the data or missing data can undermine oversight. The program worked like this. If approved, the SBA pays the lender back using federal funds. are moving. Firm estimates of fraud related to CARES Act spending, including the Paycheck Protection Program and the Economic Injury Disaster Loan program, may not be available until many more cases are brought and more analysis has been conductedpotentially years away. Louisiana has a total of 217,332 businesses that received Paycheck Protection Program (PPP) loans from the Small Business Administration. | Mr. Santemore's pleaded guilty on April 27, 2022, and was sentenced on July 25, 2022 but the terms of his sentence are under seal. 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.. In January, the U.S. Attorneys Office for the Eastern District of California obtained the first settlement in a Paycheck Protection Program civil enforcement case, against an online retailer called SlideBelts Inc. The PPP loan forgiveness is not subject to Louisiana state income tax. 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. An estimated 1% of that 2009 stimulus was lost to fraud (some claim the rate is even lower than that). In Louisiana, a federal grand jury recently indicted a Plaquemine woman named Lestreonia Rodrigue on fraud charges. Making sure that victims of federal crimes are treated with compassion, fairness and respect. POGO was unable to reach Edwards before publication. However, a check of public records for business licenses with the Secretary of State office revealed no active business licenses for those eight individuals. This map is your interactive guide to confirmed cases, recoveries and deaths from the coronavirus around the state, nation and world. Help us crowdsource fraud detection in the PPP program! Greenbergs insider was a loan officer who began working for the agency in May 2020. Pape and Jung used more than $3600 from the fraud scheme to pay for a stay at a resort in San Antonio, Texas, according to the Justice Department. The Department of Justice says in Feb. 2021, Gray created a scheme to defraud a lender and the United States, through the Small Business Administration, by filing false applications for PPP. 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 PPP loan forgiveness is not subject to Louisiana state income tax. When they believe they have unearthed sufficient evidence to allege the government has been defrauded, these individuals file qui tam lawsuits, Grossman said. Applicants fraudulently obtained at least $16 million, per the Justice Department. She's accused of making up fake businesses to collect more than $20,000 through. Eastern District of Louisiana The cash injection and potentially forgivable loans were . 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. 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. The DOJ says this ill-gotten money was in many cases used to buy luxury personal items like cars, homes, vacation trips, and jewelry. POGO has sought additional data from the Small Business Administration, and to improve data collection. 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. These are not simple or easy cases to investigate and charge, then-acting Assistant Attorney General Brian Rabbitt said at a press conference last September. A picture from that stay shows Pape and Jung celebrating over sparkling wine. Jungs attorney declined to comment, and Papes attorney did not respond to a request for comment. 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. This Office was one of the districts affected by the SolarWinds intrusion. 6 AVG COMPANY SIZE. This is your state and county equivalent level look at how many have gotten a dose or doses of the COVID-19 vaccine. 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.. portville central school yearbooks; jennette mccurdy astroseek. 66625. The defendants were arrested this morning. 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 Biden administration published a fact sheet on February 2 detailing new measures to prevent fraud in the program. PPP Loans in Raceland, LA - Page 13. of Loans Jobs Retained Louisiana Department of Revenue Identity Theft Affidavit, Louisiana Workforce Commission Suspected Fraud Form. Many believe a high percentage of these grants were stolen, but some federal prosecutors with heavy caseloads may find it hard to justify Brian Grossman, the Small Business Administrations assistant inspector general for investigations, told POGO that as of March 10, 2021, the watchdog office had 91 active Paycheck Protection Program investigations and 121 active Economic Injury Disaster loan investigations. Other government agencies also submit referrals of potential fraud to the office of inspector general, and suspicious activity reports come in through the financial industry by way of the Treasury Department. In less than six months, more than 50 people have been charged with allegedly committing fraud in connection with the program. Your Address, Corporation Income/Franchise Extension Request. 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