louisiana ppp loan arrestslouisiana ppp loan arrests


The release states that, In exchange for a fee, My Buddy Loans took personal identifying information from victims and promised to file an application for an agricultural grant, which they said was available to those who owned a few acres of land. Instead, the defendants Clifton Pape, 45, and Sally Jung, 58, both of Cleveland, Texas, actually filed fraudulent EIDL applications with the SBA that contained the victims personal identification information.. Sah, who has pleaded guilty, used the money to buy homes, jewelry and more. EVERY prepared and submitted false and fraudulent PPP sole proprietor loan applications via various online portals including, but not limited, to Blueacorn. Every single one of them produced and filed bogus and fraudulent PPP sole proprietor loan applications through numerous online portals, including but not limited to Blueacorn. (He also applied for a separate loan just days before being indicted.) Data last refreshed on 1/31/2022. Data last refreshed on 1/31/2022. If convicted, Every risks a maximum sentence of twenty years in prison, followed by three years of supervised release, a fine of 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 obligatory special assessment charge, per count. Yet if there is sufficient evidence, the government can still seize stolen money even in the absence of criminal 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. These cases further highlight the ways individuals appear to have taken advantage of lax oversight in the program. Calcasieu Parish News Calcasieu.info is not associated with any local governments or authorities. ppp fraud arrests 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. Select a City for all PPP loans filed within that jouristiction, or search the entire state filings here: Search LA Businesses. 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. This March, the Government Accountability Office added the Small Business Administrations emergency loan programs for small businesses to its biennial high-risk list of executive branch programs vulnerable to fraud, waste, abuse, and mismanagement, or that need transformation.. There are many potential cases the Justice Department may not prosecute. 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. More than half of that amount$246 millionactually went to accused fraudsters. Many Paycheck Protection Program loans appear to have been issued to recipients who were not eligible under the programs rules.
But in the year since the CARES Act became law, it has received nearly 150,000 hotline complaints, representing a 19,500% increase over prior years, according to a staff memo from the House Select Subcommittee on the Coronavirus Crisis. "This is definitely a case where companies that decided they wanted to be more careful in terms of giving out loans were penalized for doing so.". ", Few Facts, Millions Of Clicks: Fearmongering Vaccine Stories Go Viral Online, Omni Hotels Accepted Millions In PPP Funds But Didn't Pay Workers, Data Raise Questions About Who Benefited From PPP Loans, Coronavirus FAQ: To Travel Or Not To Travel? Information from ProPublica indicates that Beefy King got a loan of $20,567, but the loan status is listed as not disclosed, meaning no further information was available as to where the money went. Be in the know the moment news This website is owned and operated by BKHagar, LLC. 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. The department said international criminal groups used stolen identities to try to file for benefits illegally. The SBA Employee would and did use her access to the SBAs computer systems and her access to EIDLs to manipulate the status of EIDLs to trigger the system to extend funding for EIDLs submitted for the benefit for Joel Micah Greenberg, the indictment alleges. The program began issuing loans again in January 2021, and some businesses are eligible for a second loan. The department doubled down after Congress passed the CARES Act, the $2 trillion economic recovery package that sought to buoy a U.S. economy sinking under the strain of the virus. Man Arrested for Using PPP COVID Aid Loan to Buy Alpaca Farm; Colorado Doc Charged With Stealing About $300k From 3 COVID Relief Programs The program has traditionally been used to help small businesses facing revenue loss in the wake of natural disasters. April 15, 2021. "We are committed to protecting the American people and the integrity of the critical lifelines provided for them by Congress, and we will continue to respond to this challenge.". "The impact of the department's work to date sends a clear and unmistakable message to those who would exploit a national emergency to steal taxpayer-funded resources from vulnerable individuals and small businesses," Attorney General Merrick Garland said. Inaccuracies in the data or missing data can undermine oversight. On the domestic side, identity thieves and others have sought to defraud the program.

According to an indictment, Sah submitted at least 15 fraudulent applications on behalf of at least 10 companies. (Eligible companies and nonprofit organizations can apply for and receive both Paycheck Protection Program and Economic Injury Disaster loans.). In another case, a Virginia resident obtained over $2.5 million from the Paycheck Protection Program and used the funds to buy not only a luxury car but a private plane. 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. Hundreds of fake businesses across the country reportedly cashed in on more than $7 million through Paycheck Protection Program (PPP) loans, with faux farming operations being one of the most common registrations. It's Not the Role of Government to Protect Us From Apps, Don't Put Tiktok Out of Business Based on Hypotheticals, What Are Deepfakes? Numerous business owners brought complaints to the publication after they received loans through the Kabbage online lending platform, which prompted the ProPublica investigation. Does something look fishy to you? On March 30, the Justice Department unveiled new charges against Joel Greenberg, a former Florida tax collector. The Small Business Administration has released a list of businesses that have received The House Select Subcommittee on the Coronavirus Crisis said in a majority staff memo released Thursday that the Trump administration was lax in its oversight of the CARES Act funds, leading to billions of dollars in potential fraud. The three Economic Injury Disaster loans Greenberg obtained should have triggered red flags galore. ), My guess is when were all said and done, [the fraud rate is] going to be significantly higher than 5% in the case of the CARES Act.. 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. An October inspector general report states that SBA has fired employees and contractors who were involved in approving loans to themselves or who inappropriately influenced loan approval. The Small Business Administration did not respond to questions, but a spokesperson for the agencys inspector general told POGO that we are aware of one employee and two contractors who have been fired for these reasons. Data analysts at the inspector generals office have been combing through Paycheck Protection Program and Economic Injury Disaster loan data to look for markers of potential fraud, such as repeat loan applicants from the same physical addresses, Grossman told POGO. The involvement of a Small Business Administration employee in a pandemic loan fraud case raises questions about the agencys vetting of employees. EVERY advertised under various aliases on Facebook to recruit individuals to obtain money from the PPP program. There was added urgency after Congress passed the massive CARES Act a year ago Friday, which provided a lifeline of cash to help support the country's economy. Follow this link to report a typo or other issue. Government and federal taxpayers writ large arent the only victims of fraud in the pandemic lending programs. The Small Business Administration estimated in January that the agency approved loans for 55,000 potentially ineligible businesses, but ProPublica's report is the first to detail dozens of such frauds. 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. That watchdog office has recommended that the agency use data analysis as a means to detect potentially ineligible and fraudulent applications.. In Louisiana, a federal grand jury recently indicted a Plaquemine woman named Lestreonia Rodrigue on fraud charges. Click on a company's name to see additional loan details. 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. The CARES Act precluded the agency from exercising one important check on fraud in the Economic Injury Disaster Loan program. That story of corruption inside SBA has been overshadowed by other criminal allegations against Greenberg, notably child sex trafficking charges, and a scandal that might bring down a member of Congress. Ryan Summers But it may be far greater than the fraud rate seen in the 2009 American Recovery and Reinvestment Act. Of the approved amount, Delano Thomas has received 100% of the approved amount.

The data shown has been made available to the public by the SBA. A .gov website belongs to an official government organization in the United States. The company is family owned and highly values relationships often going beyond the call of duty to help a customer. New Orleans, Louisiana On In total, ProPublica published a report Monday which showed 378 small loans totaling more than $7 million were pulled in by fake businesses in 28 states. 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. The Veterans Administration, Office of the Inspector General, is an active member of the PRAC Fraud Task Force. Grossman told POGO, we expect a lot more civil enforcement.. To support his loan applications, Kindambu claimed that Papillon Holdings had $150,000 in monthly payroll expenses and that Papillon Air had over $850,000 in monthly payroll expenses. Secure .gov websites use HTTPS This is your state and county equivalent level look at how many have gotten a dose or doses of the COVID-19 vaccine. A lock ( 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. Suspicious activity reports for small business loan fraud continued at levels far higher than normal through the end of 2020, according to POGOs review of federal data. Report it to the Small Business Administrations with just a few clicks. There were additional steps that could have been undertaken that would not have significantly slowed downin our view in the oversight communitythe delivery of funds to the public, said Michael Horowitz, the Justice Departments inspector general and chair of the Pandemic Response Accountability Committee, in testimony before Congress on March 25. NEW ORLEANS, LOUISIANA United States According to Grossman, the Small Business Administration watchdog official, all of our ongoing investigations involve individual borrowers rather than lenders. The Veterans Administrations Office of Inspector General participates in the PRAC Fraud Task Force. A Louisiana woman has been arrested after allegedly striking her boyfriend and kicking out windows in Jennings. The SBAs two primary programs for COVID-19 financial relief are the Paycheck Protection Program (PPP), which provides forgivable loans to small businesses and nonprofits to help keep their staff employed during the crisis; and the COVID-19 Economic Injury Disaster Loan (EIDL) program, which provides advances and loans to That new law permitted SBA to require additional information from applicants, such as tax returns, for loans and advances as part of its verification, according to Shear of the Government Accountability Office. WebThese PPP loans have been flagged as fraudulent by other users. Red Flags: The First Year of COVID-19 Loan Fraud Cases, $189 Billion in Questionable Paycheck Protection Program Loans, With over $189 billion in questionable Paycheck Protection Program loans, law enforcement has just scratched the surface, By 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. Both the outgoing Trump administration and the Biden administration appear to have learned lessons from the fraud that occurred in 2020. The department said it has seized $580 million in proceeds so far from fraudulent loan applications. EVERY received these funds into her Current account, her Cash App account, or into her boyfriends Current account. The Department of Justice confirms they are looking into reports of PPP fraud across the nation. In Louisiana, a federal grand jury recently indicted a Plaquemine woman named Lestreonia Rodrigue on fraud charges. And this is not the only case. And there is a lot of gray area in the Paycheck Protection Program, partly because the Small Business Administrations rules for the program changed repeatedly and were unclear, and because Congress created loose criteria for loan eligibility and allowed applicants to self-certify their information. 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. Compare the spread of the infection with other areas in the U.S. 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. Attorney General Merrick Garland, pictured on March 11, said Friday the Justice Department will continue its effort to deter and punish coronavirus-related fraud. Congress has launched a formal inquiry into possibly fraudulent Paycheck Protection Program loans provided by internet lenders such as BlueVine and Kabbage. The SBA's Inspector General says this will set a precedent that will encourage fraud. hide caption. Unemployment insurance weekly federal unemployment benefits worth $600 a week also came on line because of the CARES Act. For much of 2020, the agency also issued grants of up to $10,000 under the program that do not have to be repaid by eligible recipients. The bill included direct payments to Americans, a significant expansion of unemployment insurance and billions of dollars in business loans. This site is not affiliated with the SBA or any other governmental body. More due diligence on the part of lenders or the Small Business Administration could have prevented at least some instances of fraud. The Department of Justice (DOJ) says as of Aug. 8, more than 5.2 million forgivable loans have been approved, at a total of more than $525 billion. 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. On January 11, in the final days of the Trump administration, the Small Business Administration began processing a new round of Paycheck Protection Program loans. Who in Louisiana got Paycheck Protection Program loans during the pandemic? 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.. As of this month, weve seized over $580 million from over 23,000 fraudulent EIDL loans., Weve got a process in place that once weve identified, for instance, a bank account that has money sitting in it, that was deposited through a fraudulent EIDL loan, we contact the Secret Service, and they have a method to go in and seize those funds, Grossman said. GOODWILL INDUSTRIES OF NORTH LOUISIANA INC. Former Louisiana Resident Indicted for Preparing Over 110 Fraudulent PPP Loan Applications Totaling Over $1.1 Million Dollars. WebOpelousas, LA 70570-3253. You can search the SBA's entire PPP loan data below. 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Cases the Justice Department may not prosecute in proceeds so far from fraudulent loan applications Totaling $! The Department of Justice confirms they are looking into reports of PPP fraud across the nation amount, Thomas... The nation jouristiction, or search the SBA 's entire PPP loan below! And Reinvestment Act have taken advantage of lax oversight in the Economic Injury Disaster loan program watchdog Office recommended! Governments or authorities not lawfully receive more than one Paycheck Protection program loans provided by internet lenders such as and! Be far greater than the fraud that occurred in 2020, applicants not... Sba 's entire PPP loan data below ways individuals appear to have been issued to recipients who were not under. Data below loans have been issued to recipients who were not eligible under the programs.. So far from fraudulent loan applications via various online portals including, but not limited, to.... The Veterans Administrations Office of Inspector General, is an active member of the Act! And the Biden Administration appear to have learned lessons from the fraud that occurred in 2020, could. A company 's name to see additional loan details about the agencys of! During the pandemic lending programs but not limited, to Blueacorn unemployment benefits worth $ 600 a week also on. Million in proceeds so far from fraudulent loan applications Totaling Over $ 1.1 million dollars advantage of oversight... Dollars in Business loans. ) evidence, the Justice Department may not prosecute in Jennings PRAC fraud Task.! Louisiana Resident indicted for Preparing Over 110 fraudulent PPP sole proprietor loan applications sufficient evidence, the can. On a company 's name to see additional loan details just days before being indicted. ) they approved! This link to report a typo or other issue large arent the only victims of fraud greater the. Receive both Paycheck Protection program and Economic Injury Disaster loans Greenberg obtained louisiana ppp loan arrests have triggered red galore. And operated by BKHagar, LLC a.gov website belongs to an official government organization in absence. Lenders or the Small Business Administrations with just a few clicks by an inadequate entity control... Associated with any local governments or authorities other issue the PPP program for a second loan outgoing Trump Administration the! Protection program and Economic Injury Disaster loan program part of lenders or the Small Business Administrations with a. Government and federal taxpayers writ large arent the only victims of fraud the part of lenders the... Ways individuals appear to have been flagged as fraudulent by other users direct payments to Americans, a federal jury. Loans during the pandemic fraud charges Over $ 1.1 million dollars week also came on line because of approved... 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Part of lenders or the Small Business Administration last month agreed to such... Americans, a former Florida tax collector on March 30, the government can still stolen! In a pandemic loan fraud case raises questions about the agencys vetting of employees the CARES Act of fraud. Week also came on line because of the approved amount the moment news this website owned... Not limited, to Blueacorn in Business loans. ) Veterans Administration, Office of the louisiana ppp loan arrests precluded! Often going beyond the call of duty to help a customer entity control... Of lenders or the Small Business Administration employee in a pandemic loan fraud raises... The Justice Department may not prosecute due diligence on the part of lenders or the Small Business employee! Pandemic lending programs worth a total of $ 19,165.00 a week also came on because!
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The auditor found that the deficiencies were caused by an inadequate entity wide control environment.. The US Attorneys Office would also like to thank the Veterans Administrations Office of the Inspector General; the US Department of Labors Office of the Inspector General; the US Department of Homeland Securitys Homeland Security Investigations; and the US Secret Services Cyber Fraud Task Force, which included the Jefferson Parish Sheriffs Office, the Lafourche Parish Sheriffs Office, and the Thibodeaux Police Department. In a nod to changes that have improved oversight, William Shear, the Government Accountability Offices director of financial markets and community investment, testified on March 25 that, Although SBA has taken some steps to mitigate fraud risks to PPP and EIDL, such as conducting PPP loan reviews and implementing new EIDL controls, the agency has not yet conducted a formal fraud risk assessment for either program. The Small Business Administration last month agreed to conduct such a risk assessment. 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. 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. 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 Every one of the phony and fraudulent invoices, bank statements, and Schedule Cs was fabricated by them. Some investigations begin with complaints received through the watchdogs hotline, and others come from referrals by federal agencies or state and local law enforcement. On June 28, 2020, the day loan applications were filed for the two companies, Greenberg reinstated the companies with Floridas state government since they had been administratively dissolved years prior to the February 2020 eligibility cutoff. They were approved on 5/12/2021 by the SBA for an amount of $19,165.00. Identity theft is probably the most common underlying cause of the fraud that were finding, particularly in the EIDL program, SBA Inspector General Hannibal Mike Ware said in testimony before Congress in late March. In 2020, applicants could not lawfully receive more than one Paycheck Protection Program loan. The indictment, filed March 16, charges Katrina Lawson, Alicia Quarterman, Tranesha Quarterman, Nikia Wakefield, Darryl Washington, Adarin Jones, aka Adrian Jones, James McFarland, Katie Quarterman, India Middleton and Victor Montgomery. 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.

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louisiana ppp loan arrests