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. Has the curve flatten in my town? judy norton children; court ordered community service california Both programs lacked basic anti-fraud safeguards and the Small Business Administration exercised insufficient oversight, according to the agencys watchdog, the Government Accountability Office, and congressional committees that have investigated the programs. 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. 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. You know, is it something that they should have done? Two people were approved for that amount twice, and one of those people got paid twice. The inspector general offices workload has increased significantly, Grossman said. And this is not the only case. My feeling is that despite the fraud, the program helped far, far, far more of my people than it hurt, said Kennedy. Nick Schwellenbach is a Senior Investigator at POGO. And if theyre not interested in prosecuting, for whatever reason, we dont further pursue it at that time., Many of the cases are moving quickly, despite their complexity. The Small Business Administration has said victims of identity theft will not have to repay the loans fraudulently obtained in their name, but some individuals have told media outlets the agency has not promptly resolved their cases. 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. (The latest round, which began in January, allowed some applicants to receive a second Paycheck Protection Program loan. At least one Small Business Administration employee allegedly took bribes last year to process fraudulent Economic Injury Disaster loans, according to criminal charges recently unveiled by the Justice Department related to the developing scandal involving Representative Matt Gaetz (R-FL). The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty. As the lending programs ramped up last summer, there was a spike in suspicious activity reports from banks and other lenders flagging potential fraud. The largest loan paid out was $20,833. 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. 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. It was this difficult road that we had about a week, but our bankers got it done and, and our businesswomen and businessmen stepped up to the plate and took advantage of it, said Sen. John Kennedy, R-La. 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. 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 Small Business Administrations Office of Inspector General found a significant gap in the agencys data on underserved markets, such as ethnicity, veteran status, and women-owned businesses. 66625. The prosecution of this case is being handled by Assistant United States Attorney Brian M. Klebba, Chief of the Financial Crimes Unit, and Assistant United States Attorney Edward Rivera, COVID-19 Fraud Coordinator. Unlike the previous round of the PPP, loan guaranty approval is now contingent on passing SBA fraud checks, Treasurys Do Not Pay database, and public records, the fact sheet states. You can search the SBA's entire PPP loan data below. of Loans Jobs Retained A .gov website belongs to an official government organization in the United States. PPP Fraud in Pride, Louisiana. Both the outgoing Trump administration and the Biden administration appear to have learned lessons from the fraud that occurred in 2020. Loan Range No. 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. 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. My directive to SBA and to the Department of Justice will be to work with our state attorneys general, work with local DHS, work with local sheriffs, and make sure people understand if you steal money, these are these are finite resources, said Kennedy. 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. 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. . But even with an allegedly corrupt insider, a loan system with adequate checks should have prevented Greenbergs loans from being approved. Sah, who pleaded guilty on March 24, used the funds to buy a Bentley convertible and multiple homes, among other things. 61000. To me, its like looting after a hurricane. 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. $350K-$1M loan to BENOIT WELDING, INC. BENOIT WELDING, INC. $150K-$350K loan to THE DELAHOUSSAYE CO., INC. 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. Complaints can also be filed online here. However, the Trump administrations Justice Department also sought to assuage companies concerns, especially in regard to qui tam False Claims Act lawsuits. Your Address, Corporation Income/Franchise Extension Request. 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). 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. 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. 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. He allegedly sought to obtain a total of more than $1.5 million in Paycheck Protection Program loans, at least $937,000 of which he successfully obtained. A total of 73,824 loans were distributed to Louisiana leading to a reported 799,664 jobs being retained. In Louisiana, a federal grand jury recently indicted a Plaquemine woman named Lestreonia Rodrigue on fraud charges. Representative James Clyburn (D-SC), chair of the House Select Subcommittee on the Coronavirus Crisis, said in the March 25 hearing that the Trump administration ignored flags of potential fraud in the Economic Injury Disaster Loan program, and approved loans in batches with little to no vetting and abandoned a rule that required two SBA employees to approve each loan application., The Trump administration ignored flags of potential fraud, While a year has passed since the CARES Act became law and there are more checks now, government watchdogs say the Small Business Administrations oversight of the lending programs is still inadequate. Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application. As of this month, weve seized over $580 million from over 23,000 fraudulent EIDL loans.. Each loan paid out was guaranteed using taxpayer money. 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. 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. The PPP loan forgiveness, Fairs, Festivals, and Other Special Events, The Importance of Protecting Client Tax Information, 2022 Practitioner Tax Update Seminar Schedule, Update Search arrest records and find latests mugshots and bookings for Misdemeanors and Felonies. (Eligible companies and nonprofit organizations can apply for and receive both Paycheck Protection Program and Economic Injury Disaster loans.). Public Service Announcement on Sexual Assault in Public Housing. This Office was one of the districts affected by the SolarWinds intrusion. & As far as the state of Louisiana is concerned, there is no requirement that a sole proprietor have a specific license at the state, said Ricks. More due diligence on the part of lenders or the Small Business Administration could have prevented at least some instances of fraud. Data is available, but its reliability for the purpose of assessing whether Paycheck Protection Program loans are reaching the underserved communities that Congress wanted prioritized is limited because the demographic data is incomplete. Nearly 11.5 million people filed applications, resulting in more than $792 billion worth of loans. Faa sua busca no site. And these cases are just the beginning. Please click here for further information. 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. 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