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. 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. The PPP loans are forgivable under certain conditions and the loan forgiveness is not taxable income for federal tax purposes. 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. 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. 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. If someone defaults, or cant pay it back, the SBA will still reimburse the lender. NGUYEN, 44, and VICTORIA HO, 31, both of Hicksville, New York, and DAT HO, 33, of the Bronx, New York, are each charged with one count of conspiracy to commit bank and wire fraud, which carries a maximum sentence of 30 years in prison; one count of major fraud against the United States, which carries a maximum sentence of 10 years in prison; and one count of conspiracy to make false statements, which carries a maximum sentence of five years in prison. Inaccuracies in the data or missing data can undermine oversight. If the borrower can prove they used the money to pay employees and eligible expenses, they can ask the SBA for loan forgiveness. The Veterans Administration, Office of the Inspector General, is an active member of the PRAC Fraud Task Force. That situation may arise in cases of apparent fraud involving Economic Injury Disaster loan advance grants of $10,000 or less. The PPP was developed to ease the pain of COVID-19 economic restraints on working Americans. The Small Business Administration has released a list of businesses that have received emergency pandemic loans.. 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. And these cases are just the beginning. Who in Louisiana got Paycheck Protection Program loans during the pandemic? You have to understand from the lenders perspective, really, theyre just looking at income. Normally, our agents work a contract or procurement fraud case those can take several years to investigate, Grossman said. 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. Louisiana has a total of 217,332 businesses that received Paycheck Protection Program (PPP) loans from the Small Business Administration. In July, banks filed nearly seven times the average number of suspicious activity reports. 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. If youre going to steal money, finite resources from people who need them, then, by God, were going to prosecute you.. An official website of the United States government. 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. [1] As the introductory phrase signifies, the entirety of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation. According to the MITRE Corporation, a mismatched zip code or insufficient award description doesnt seem particularly egregious. 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. According to the SBA, lenders are responsible for vetting applications and making sure the applicant is telling the truth in whatever way they see fit. Name Jobs Reported Current Loan Loan Forgiveness; Amount ($) Date Approved Amount ($) Date; CONQUEST COMPLETION SERVICES, LLC: 129: 6,940,800: July 30, 2020: 7,069,157 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 auditor found that the deficiencies were caused by an inadequate entity wide control environment.. And these cases are just the beginning. 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. 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 involvement of a Small Business Administration employee in a pandemic loan fraud case raises questions about the agencys vetting of employees. A vast number of referrals to the Small Business Administrations (SBA) Office of Inspector General involve complaints of identity theft, particularly related to the Economic Injury Disaster Loan (EIDL) program. SOUTHERN CLASSIC OF FARMERVILLE LLC. Government and federal taxpayers writ large arent the only victims of fraud in the pandemic lending programs. 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. Two of the companies, Symbiont Retailers and Horizon Enterprises, were not in good standing before the Paycheck Protection Program began. According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court: The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Ryan Summers is a research fellow for POGO. 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. 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. But, he added, the CARES Act removed that control, calling it a pivotal change.. . This interactive map provides a picture of the ranks of the unemployed at the national, state and county level. The DOJ says falsified tax records were submitted and in some cases, stolen personal information was also used in these attempts to defraud the PPP. 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. 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. Aqeel used some of the proceeds to purchase a Lamborghini sports car, according to the Justice Department. 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. 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. Former La. Dr. James Hobley: When should you be screened for colon cancer? 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.. Meant to help small businesses keep workers on the payroll, the Paycheck Protection Program offers loans of up to $10 million that can be forgiven in full if recipients meet certain employee retention requirements. 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. 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. However, the Trump administrations Justice Department also sought to assuage companies concerns, especially in regard to qui tam False Claims Act lawsuits. POGO was unable to reach Edwards before publication. Complaints can also be filed online here. 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. 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. They. Click on a company's name to see additional loan details. But such gaps can create ambiguities that muddy the waters in overseeing spending., Still, much can be done with the data that does exist. 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. We dont have the capacity to work everything that comes in, Grossman told POGO. A lock ( 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.. This is your state and county equivalent level look at how many have gotten a dose or doses of the COVID-19 vaccine. EVERY prepared and submitted false and fraudulent PPP sole proprietor loan applications via various online portals including, but not limited, to Blueacorn. Even if the Justice Department declines to join a case, the whistleblower and their private counsel can continue to pursue it. An attorney for Aqeel, Tommy T. Mingledorff, told POGO by email that these allegations are denied. (He also applied for a separate loan just days before being indicted.) DAVID RAINES COMMUNITY HEALTH CENTER, INC. Share sensitive information only on official, secure websites. 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.. The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty. 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. In less than six months, more than 50 people have been charged with allegedly committing fraud in connection with the program. Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application. A locked padlock Loan Range No. The rebates, funded by the CARES Act, are subject to Louisiana state income tax. of Loans Jobs Retained Ms. Strauss praised the investigative work of the SBA-OIG, FBI, and IRS-CI, and noted that the investigation remains ongoing. Kindambu applied for two Paycheck Protection Program loans representing Papillon Holdings, Inc. and Papillon Air, Inc., according to court documents. Maurice Kamgaing, 41 sent PPP loan . 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.. Public Information Director
Lock It soon became apparent that the Economic Injury Disaster Loan programs setup also made it particularly susceptible to fraud. The nonprofit MITRE Corporation found more than 85% of Paycheck Protection Program loan recipients did not indicate their race or ethnicity in their loan applications, Earlier this year, the Biden administration revamped the Paycheck Protection Program loan application to encourage self-reporting of demographic data and better illustrate the impact the PPP is having across various population segments. But the Small Business Administration acknowledged, as of late March, there is still limited demographic data on PPP borrowers.. Using that public data, the 9 News Investigators took a close look at PPP loans given out in Louisiana. 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. Thats because, at least in part, its optional for loan applicants to supply that information. Two people were approved for that amount twice, and one of those people got paid twice. 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. 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 *** For media inquiries, contact: Its up to the SBA and the Justice Department to go after anyone caught stealing PPP money. Your Address, Corporation Income/Franchise Extension Request. 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 To disguise the fraud, family members moved the proceeds through several bank accounts held in different names, according to the Justice Department. Ryan Summers 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. I dont know why it is that that some people take advantage of a program like this in a time of crisis. A borrower applied for a PPP loan from a lender or bank. This table shows the top 5 industries in Louisiana by number of loans awarded, with average loan amounts and number of jobs reported. 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. 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. 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 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). 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.. 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. Marion State Bank. 61000. This March, the Government Accountability Office revealed that 4 months after SBA started using a system to approve Economic Injury Disaster loans in batches, agency officials realized this system contained alerts that should have been reviewed by loan officers, but had not been. According to the Board of Barber Examiners, to legally run a barbershop, an owner must have a business license and a barber license if they are cutting hair even if that business is run out of a home. The DOJ says falsified tax records were submitted and in some cases, stolen personal information was also used in these attempts to defraud the PPP. 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. Grossman told POGO, we expect a lot more civil enforcement.. That watchdog office has recommended that the agency use data analysis as a means to detect potentially ineligible and fraudulent applications.. Civil enforcementwhere the evidentiary burden is lower than in criminal casesis another way of holding individuals and companies accountable. Each loan paid out was guaranteed using taxpayer money. Giving back to the community through a variety of venues & initiatives. Copyright 2020 WAFB. 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. 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. 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. 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. how to get to quezon avenue mrt station Uncovering hot babes since 1919. 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. Lenders approved that amount for eight people, seven of whom got checks. PPP Loans in Raceland, LA - Page 13. According to the Justice Department, Didier Kindambu obtained two loans by creating fraudulent payroll documentation for each business.. 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. Congress reversed course when it passed a new law on December 27, which authorized more coronavirus loans. 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. 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. The scandal is whats legal, not whats illegal.. For instance, the department may decline cases involving smaller-dollar amounts, especially in busier U.S. attorneys offices around the country, Grossman said. 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. 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. 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.. 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. For example, in the city of Gonzales, there were 70 people claiming to own a barbershop who applied for loans. EVERY charged $45.00 to $120.00 from the individuals she recruited to prepare and submit the fraudulent PPP application. During the programs first round, the Small Business Administration issued 5.2 million loans between April and August 2020. 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. 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. 9,060 loans. 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. Gibsland Bank & Trust Company. 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). Thats more than 10 times the fraud recoveries five years after the 2009 stimulus became law. THE DELAHOUSSAYE CO., INC. $150K . judy norton children; court ordered community service california 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. 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). (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. 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. 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. Report it to the Small Business Administrations with just a few clicks. are moving. Allegedly misrepresenting the number of employees on their payroll to obtain the funding, they deposited this money into accounts controlled solely by them. 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. Additionally, CARES II provides up to $300 in weekly supplemental unemployment benefits. 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. Lenders approved that amount twice, and the U.S unless and until proven guilty the of! Largest loans in Raceland, LA - Page 13 since 1919 General, is an active member of proceeds! 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