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. We have a lot of qui tam cases that have been brought forward, Grossman told POGO, generally referring to False Claims Act complaints filed by private individuals. To me, its like looting after a hurricane. Not all those loans were necessarily fraudulently obtained. An estimated 1% of that 2009 stimulus was lost to fraud (some claim the rate is even lower than that). The payments are refundable tax credits and are not considered taxable income for federal or state tax purposes. The Paycheck Protection Program (PPP) established by the CARES Act, provides small businesses with funding for payroll costs, mortgage interest, rent, and utilities. According to the Justice Department, Didier Kindambu obtained two loans by creating fraudulent payroll documentation for each business.. 650 Poydras Street, Suite 1600 Greenbergs insider was a loan officer who began working for the agency in May 2020. This table shows the top 5 industries in Louisiana by number . Showing 50 of 9,060 results. Act 311 of the 2020 Regular Session of the Louisiana Legislature allocated federal CARES Act funds to provide grants of up to $15,000 to eligible small businesses through a program administered by the Louisiana Department of Treasury. Grossman said his office has shared data with the Department of Health and Human Services Office of Inspector General, which identified some repeat offenders. EVERY received these funds into her Current account, her Cash App account, or into her boyfriends Current account. Aqeel used some of the proceeds to purchase a Lamborghini sports car, according to the Justice Department. 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. Inaccuracies in the data or missing data can undermine oversight. I urge anyone who believes he or she is a victim of this type of fraud to report it to the National Center for Disaster Fraud," said US Attorney Brandon Fremin. GOODWILL INDUSTRIES OF NORTH LOUISIANA, INC. BIOMEDICAL RESEARCH FOUNDATION OF NORTHWEST LOUISIANA, ROSS H DIES DDS & BENJAMIN A BEACH DDS, LLC, Agriculture, Forestry, Fishing and Hunting, Professional, Scientific, and Technical Services, Administrative and Support and Waste Management and Remediation Services, Other Services (except Public Administration). Eastern District of Louisiana 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 SBA now also conducts manual loan reviews for the largest loans in the PPP portfolio and a random sampling of other loans. Underscoring the tension between fraud prevention and disbursing assistance quickly, the added checks to verify information submitted by applicants have somewhat slowed the processing of loan applications. 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. To disguise the fraud, family members moved the proceeds through several bank accounts held in different names, according to the Justice Department. Joshua Edwards, the supposed vice president of ASLAN International Ministry, is accused of submitting fake payroll, tax, and financial documentation in support of the loan application. (212) 637-2600, Human Trafficking & Child Sexual Exploitation, Department of Justice Harassment Prevention Resource, Download Ngoc Manh Nguyen et al. 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. Published 8:46 am Sunday, September 11, 2022 . Who in Louisiana got Paycheck Protection Program loans during the pandemic? All rights reserved. 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. Click on a company's name to see additional loan details. 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. A .gov website belongs to an official government organization in the United States. For instance, in a review for the Pandemic Response Accountability Committee, the nonprofit MITRE Corporation examined a sample of 500 records for Paycheck Protection Program loans above $150,000. 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. (The latest round, which began in January, allowed some applicants to receive a second Paycheck Protection Program loan. 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. The cash injection and potentially forgivable loans were . For media inquiries, contact: Nick Schwellenbach Its the first public case of fraud in these pandemic loan programs attributed to corruption within the agencys own ranks. Origin Bank. Share sensitive information only on official, secure websites. One case involves Dinesh Sah, a Dallas-area man, who obtained $17.3 million after having sought a $24.8 million loan. 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. 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. Each loan paid out was guaranteed using taxpayer money. 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. Report it to the Small Business Administrations with just a few clicks. Summary of PPP Loans in Louisiana. Have a question about Government Services? Two people were approved for that amount twice, and one of those people got paid twice. 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. (Eligible companies and nonprofit organizations can apply for and receive both Paycheck Protection Program and Economic Injury Disaster loans.). 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. Investigators determined there were at least 110 PPP sole proprietor loan applications in and around the Thibodeaux, Louisiana area and they all had the same invoices and federal tax forms (Schedule C) with the same business name and amounts. According to the MITRE Corporation, a mismatched zip code or insufficient award description doesnt seem particularly egregious. Public Service Announcement on Sexual Assault in Public Housing. 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. A check of Floridas Division of Corporations database would have revealed the companies had just been reinstated. But, he added, the CARES Act removed that control, calling it a pivotal change.. 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. The CARES Act precluded the agency from exercising one important check on fraud in the Economic Injury Disaster Loan program. 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. 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. Investigators say those accused made false statements about things like how many people they employ, their average monthly revenue, and payroll figures. What happens when the watchdog tasked with overseeing the most powerful law enforcement agency in the country doesnt do its job? Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justices National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. They often involve obtaining and then piecing together often-complex financial, payroll, and tax records for individuals and companies, and sifting through other evidence. Rabbitt noted the unparalleled speed with which these cases have been investigated and prosecuted.. 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. 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. Complaints can also be filed online here. 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.. In less than six months, more than 50 people have been charged with allegedly committing fraud in connection with the program. The law firm K&L Gates, however, wrote in December that since Congress allowed lenders to rely on borrowers self-certified information, that should decrease the likelihood that otherwise law abiding financial service providers would face government scrutiny for the fraudulent acts of their borrowers., The role of employees who become whistleblowers may emerge as a significant factor in civil Paycheck Protection Program cases. As of late March, the department has obtained 48 convictions. All totaled, in that city of 43,000 people lenders approved $1.3 million dollars just for barbershop owners. The PPP loans are forgivable under certain conditions and the loan forgiveness is not taxable income for federal tax purposes. The loans have to be repaid with low interest. Lawmaker wants police trained to handle Alzheimers, dementia patients, Health Minute: First at-home flu and COVID test authorized. There are many potential cases the Justice Department may not prosecute. 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. Many Paycheck Protection Program loans appear to have been issued to recipients who were not eligible under the programs rules. Data analysis could also help the agency assess potential policy changes, and the Biden administration made some changes to make access to relief more equitable earlier this year. My feeling is that despite the fraud, the program helped far, far, far more of my people than it hurt, said Kennedy. 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. 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. 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. According to an indictment, Sah submitted at least 15 fraudulent applications on behalf of at least 10 companies. 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. 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. 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. Normally, the agency can require loan applicants to fill out a form allowing the agency to verify their tax information with the Internal Revenue Service. More due diligence on the part of lenders or the Small Business Administration could have prevented at least some instances of fraud. 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.. & Both laws have provisions allowing whistleblowers to receive a reward for successful recoveries obtained for the U.S. government. U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. 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. 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.. The Federal Trade Commission wrote in February that, Last year, we received 99,650 reports of fraud involving business or personal loans, compared with 43,920 reports in 2019, before the pandemic began. Your Address, Corporation Income/Franchise Extension Request. 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. 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. of Loans Jobs Retained 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. 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. VICTORIA HO will be presented tomorrow in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn. Qui tam complaints are filed under seal project, POGO has been examining equitable access to government loans, grants, and contracts. Linda Miller, the deputy executive director of the Pandemic Response Accountability Committee, told Federal News Radio in September, 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. If it is just 5% of the combined $957 billion in Paycheck Protection Program loans and Economic Injury Disaster loans and advance grants, that would still be about $48 billion in fraud. 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. The PPP loans are forgivable under certain conditions and the loan forgiveness is not taxable income for federal tax purposes. PPP Loans in Raceland, LA - Page 13. 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. The program has traditionally been used to help small businesses facing revenue loss in the wake of natural disasters. 9,060 loans. 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. 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. An internal analysis last fall by the Small Business Administration identified over 2 million approved PPP loan guarantees worth some $189 billion that were potentially not in compliance with the law, though it may turn out that many of those loans were not fraudulent. IRS-Criminal Investigation remains dedicated to working with our law enforcement partners to ensure that these types of fraud are investigated and the offenders are punished to the fullest extent of the law.. Its up to the SBA and the Justice Department to go after anyone caught stealing PPP money. Senator Kennedy admits the program may have had some holes in it, due to how quickly it was rolled out, and the loan program has been updated many times to expand eligibility. Yet if there is sufficient evidence, the government can still seize stolen money even in the absence of criminal charges. Facebook; Linkedin; louisiana ppp loan arrestsaboriginal handmade jewellery 19 January 2023 / in types of poop poster spencer's / by / in types of poop poster spencer's / by Copyright 2021 WAFB. The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty. 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. Applicants fraudulently obtained at least $16 million, per the Justice Department. The Small Business Administration distributed 5.8 million advance grants worth $20 billion last year (despite the name, these are not loans that have to be repaid). The Small Business Administration has released a list of businesses that have received emergency pandemic loans. $350K-$1M loan to BENOIT WELDING, INC. BENOIT WELDING, INC. $150K-$350K loan to THE DELAHOUSSAYE CO., INC. (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. The defendants were arrested this morning. . Lock 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. Both the U.S. Attorneys Office and the Louisiana Attorney General have encouraged the community to report suspected fraud. This Office was one of the districts affected by the SolarWinds intrusion. Search arrest records and find latests mugshots and bookings for Misdemeanors and Felonies. Lenders approved that amount for eight people, seven of whom got checks. Louisiana Workforce Commission Suspected Fraud Form. OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. The line is staffed 24/7. April 15, 2021. It Got a PPP Loan. Report it to the Small Business Administrations with just a few clicks. EVERY then charged approximately $3,500.00 once the loans were funded. BATON ROUGE, La. 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. All rights reserved. Saintvils attorney declined to comment. Nearly a dozen of those people took out two loans. As part of its own COVID-19 relief spending tracker Some investigations begin with complaints received through the watchdogs hotline, and others come from referrals by federal agencies or state and local law enforcement. POGO has sought additional data from the Small Business Administration, and to improve data collection. They allegedly exploited a program designed to provide vital funding for small businesses that are legitimately struggling in the midst of the pandemic. Allegedly misrepresenting the number of employees on their payroll to obtain the funding, they deposited this money into accounts controlled solely by them. Filed under investigation Making sure that victims of federal crimes are treated with compassion, fairness and respect. 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 Marion State Bank. 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. The DOJ says this ill-gotten money was in many cases used to buy luxury personal items like cars, homes, vacation trips, and jewelry. 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. But such gaps can create ambiguities that muddy the waters in overseeing spending., Still, much can be done with the data that does exist. 66625. 3 Defendants Arrested For Over $13 Million Fraud Scheme To Obtain Loans Intended To Help Small Businesses During COVID-19 Pandemic 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 Byron Henderson (He also applied for a separate loan just days before being indicted.) The forgivable loans were meant to cover payroll for employees and, later, other eligible expenses at a time when customers werent coming in. EVERY primarily used Cash App to receive the initial payments. Click here for information on the investigation into the Mount Vernon Police Department. But the government could have implemented these safeguards from the beginning, which may have prevented significant levels of apparent fraud in the program. If approved, the SBA pays the lender back using federal funds. The amounts varied from less than $2,000 to more than $20,000. Law enforcement insiders say many more pandemic loan fraud cases will be brought in the months and years ahead. 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. The PPP was developed to ease the pain of COVID-19 economic restraints on working Americans. 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.. 8851 center dr la mesa, ca 91942; chamberlain graduation 2023; fun sober things to do on a friday night. And this is not the only case. New Orleans, Louisiana 70130. SBA has fired employees and contractors who were involved in approving loans to themselves or who inappropriately influenced loan approval. 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. According to court records, Amir Aqeel and several others in the Houston area allegedly created fake tax and payroll documentation in exchange for large kickbacks for referring others into the scheme that involved 12 corporate entities. 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 Ms. Strauss also thanked Homeland Security Investigations and the U.S. Attorneys Office for the Eastern District of New York for their assistance with the investigation. Employ, their average monthly revenue, and one of the pandemic emergency., September 11, 2022 reasonable doubt certain conditions and the loan forgiveness is not taxable income federal... Sba pays the lender back using federal funds, LA - Page 13 estimated! Have revealed the companies had just been reinstated Department may not prosecute the Justice Department may not prosecute 2,000... Program loan amount for eight people, seven of whom got checks Magistrate Judge Netburn! 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