louisiana ppp loan arrests

6 AVG COMPANY SIZE. You can search the SBA's entire PPP loan data below. Congress also authorized the Small Business Administrations existing Economic Injury Disaster Loan (EIDL) program to lend in response to the pandemic, and nearly $202 billion in loans through that program have been approved as of April 1. Vance's (R-Ohio) call for a Paycheck Protection Program (PPP)-style plan to help workers and businesses affected by the East Palestine train . | In email and text exchanges, defendants acknowledged that a number of the companies did no legitimate business, disqualifying them from receiving the 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. Eastern District of Louisiana Complaints can also be filed online here. 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. 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. The three Economic Injury Disaster loans Greenberg obtained should have triggered red flags galore. 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. Maurice Kamgaing, 41 sent PPP loan . (Eligible companies and nonprofit organizations can apply for and receive both Paycheck Protection Program and Economic Injury Disaster loans.). $12.2B TOTAL LOAN AMOUNT. 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. Allegedly, the family sought, ultimately unsuccessfully, to use the funds to purchase a $3.7 million mansion in Disney Worlds Golden Oak gated community. Federal investigators cannot comment on active investigations or give an estimate on how much fraud may have occurred through federal pandemic relief programs, but a spokesperson for the U.S. Attorneys Office of the Middle District of Louisiana confirms there were fraudulent applications submitted in Louisiana through several relief programs including the PPP. ) or https:// means youve safely connected to the .gov website. The CARES Act precluded the agency from exercising one important check on fraud in the Economic Injury Disaster Loan program. But, he added, the CARES Act removed that control, calling it a pivotal change.. 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. Greenbergs insider was a loan officer who began working for the agency in May 2020. 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. Inaccuracies in the data or missing data can undermine oversight. The Justice Department brought civil claims against the company under both the False Claims Act and Financial Institutions Reform, Recovery and Enforcement Act. Another large identity theft case led to charges against Jeremie Saintvil of Delray Beach, Florida in March. 8851 center dr la mesa, ca 91942; chamberlain graduation 2023; fun sober things to do on a friday night. Copyright 2020 WAFB. 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. In order to support the false representations in the loan applications about the number of employees at, and the wages paid by, the Victoria Companies, the defendants submitted fraudulent and doctored payroll and tax records. Thanks to the combined efforts of the SBA, the FBI, and IRS-CI, the defendants face prosecution., SBA-OIG Special Agent-in-Charge Amaleka McCall-Brathwaite said: Falsifying documents to fraudulently gain access to SBA program funds is unconscionable. The program worked like this. 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. POGO has sought additional data from the Small Business Administration, and to improve data collection. EVERY created all of the false and fraudulent invoices, bank statements, and Schedule Cs. POGO found that 11 of the 15 loans were funded. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. An attorney for Aqeel, Tommy T. Mingledorff, told POGO by email that these allegations are denied. What happens when the watchdog tasked with overseeing the most powerful law enforcement agency in the country doesnt do its job? 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.. But the government could have implemented these safeguards from the beginning, which may have prevented significant levels of apparent fraud in the program. POGO was unable to reach Edwards before publication. Loan Range No. The oversight failures of the last year have become increasingly clear, eventually leading to changes. 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.. 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 (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. New Orleans, Louisiana 70130. When they believe they have unearthed sufficient evidence to allege the government has been defrauded, these individuals file qui tam lawsuits, Grossman said. According to an indictment, Sah submitted at least 15 fraudulent applications on behalf of at least 10 companies. He also opened bank accounts and lines of credit at financial institutions and credit card companies in the names of his elderly victims, according to the Justice Department. (In late March, the Justice Department told Congress that it had charged $446.8 million in losses related to PPP. Some of these cases may still be under seal and charges are routinely being unsealed.) Your Address, Corporation Income/Franchise Extension Request. For more information on the Department of Justices response to the pandemic, please visit https://www.justice.gov/coronavirus. 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.. Who in Louisiana got Paycheck Protection Program loans during the pandemic? These cases further highlight the ways individuals appear to have taken advantage of lax oversight in the program. Saintvils attorney declined to comment. 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. Funds disseminated through this program are subject to Louisiana state income tax. The Justice Department has accused numerous defendants of using Paycheck Protection Program loans for unlawful purposes, such as purchasing private planes, sports cars, and taking pricey trips to Las Vegas casinos. [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. An estimated 1% of that 2009 stimulus was lost to fraud (some claim the rate is even lower than that). 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. The rebates, funded by the CARES Act, 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. 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. Nick Schwellenbach 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. Each loan paid out was guaranteed using taxpayer money. With more time, we might have been able to implement some preemptive fraud measures, but we knew there would be some fraud, said Kennedy. 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. Secure .gov websites use HTTPS Many Paycheck Protection Program loans appear to have been issued to recipients who were not eligible under the programs rules. The forgivable loans were meant to cover payroll for employees and, later, other eligible expenses at a time when customers werent coming in. Published 8:46 am Sunday, September 11, 2022 . A picture from that stay shows Pape and Jung celebrating over sparkling wine. Jungs attorney declined to comment, and Papes attorney did not respond to a request for comment. 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. Enforcement Act, between $ 5,589,989,154 and $ 10,528,439,154 have been loaned through the Payroll program... United States prove their allegations beyond a reasonable doubt from that stay shows Pape and Jung celebrating sparkling... The Economic Injury Disaster loans Greenberg obtained should have triggered red flags galore Act removed control... Routinely being unsealed. ) organizations can apply for and receive both Paycheck Protection program and Economic Injury Disaster Greenberg! 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