louisiana ppp loan arrests

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. The agencys Assistant Inspector General for Investigations Brian Grossman told POGO that not all of the referrals relate to the COVID-19 relief lending programs, but many of them do.. Some investigations begin with complaints received through the watchdogs hotline, and others come from referrals by federal agencies or state and local law enforcement. When the government spends money, taxpayers deserve to know how it was spent, Clarion Ledger Editor Marlon A. Walker says. In Louisiana, a federal grand jury recently indicted a Plaquemine woman named Lestreonia Rodrigue on fraud charges. The auditor found that the deficiencies were caused by an inadequate entity wide control environment.. One percent of the recovery acts $501 billion in spending would be about $5 billion. But even with an allegedly corrupt insider, a loan system with adequate checks should have prevented Greenbergs loans from being approved. (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. According to Grossman, the Small Business Administration watchdog official, all of our ongoing investigations involve individual borrowers rather than lenders. In July, banks filed nearly seven times the average number of suspicious activity reports. 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. As of this month, weve seized over $580 million from over 23,000 fraudulent EIDL loans.. According to the U.S. Attorneys Office, there have been dozens of people charged with fraud nationwide and there are five pending Federal civil procedures where agencies are looking to get back $2.3 million worth of fraudulent assets including two high-end cars, a house, and cash. 2020 Louisiana Individual Income Tax returns and payments are due Monday, May 17, 2021. Grossman told POGO, we expect a lot more civil enforcement.. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. AGs Office announces more than 50 arrests connected to Paycheck Protection Program fraud. In certified submissions to the federal government, the familys ministry claimed a substantial operation with 486 employees, a monthly payroll of over $2.76 million, and revenue exceeding $51 million in 2019. This case was brought in New Orleans, Louisiana. But, he added, the CARES Act removed that control, calling it a pivotal change.. So now, he says agencies must go after anyone who might be taking money theyre not entitled to. 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. Vance's (R-Ohio) call for a Paycheck Protection Program (PPP)-style plan to help workers and businesses affected by the East Palestine train . After the defendants learned that a hold was placed on bank accounts of the Victoria Companies that received PPP loans issued by one financial institution due to suspicion of fraudulent activity, one of the defendants conducted Internet searches for PPP Fraud, PPP Loan Fraud Arrests, and How to get rid of a PPP Loan. The defendants thereafter withdrew the applications for and/or repaid the PPP loans for the Victoria Companies issued by that financial institution. As the lending programs ramped up last summer, there was a spike in suspicious activity reports from banks and other lenders flagging potential fraud. Nick Schwellenbach is a Senior Investigator at POGO. To me, its like looting after a hurricane. 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. 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. | Jean Rabbittand Kevin Aguilarwere charged with bank fraud and conspiracy to engage in monetary transaction charges. 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. to fraudulently obtain the loan money. 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. Click on a company's name to see additional loan details. 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. 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. EVERY charged $45.00 to $120.00 from the individuals she recruited to prepare and submit the fraudulent PPP application. The PPP loans are forgivable under certain conditions and the loan forgiveness is not taxable income for federal tax purposes. Check out bed occupancy rate of hospitals. 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. 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. The case against EVERY began as a result of a referral from the COVID-19 Pandemic Response Accountability Committee (PRAC) regarding possible fraudulent Paycheck Protection Program loans (PPP). More than a year after the pandemic brought much of the economy to a standstill, mounting fraud cases underscore how the Small Business Administrations (SBA) oversight of its massive taxpayer-backed lending programs proved to be inadequate as they became magnets for fraudsters. The amounts varied from less than $2,000 to more than $20,000. Sen. J.D. While the multi-million dollar PPP loan scam cases get the national headlines, federal prosecutors are going after PPP loan fraud in all amounts. BATON ROUGE, La. They have never said they won't seek prison time for below a minimum dollar amount. Grossman said his office has shared data with the Department of Health and Human Services Office of Inspector General, which identified some repeat offenders. In email and text exchanges, defendants acknowledged that a number of the companies did no legitimate business, disqualifying them from receiving the loans. Funds disseminated through this program, The Paycheck Protection Program (PPP) established by the CARES Act, provides small businesses with funding for payroll costs, mortgage interest, rent, and utilities. SBA has fired employees and contractors who were involved in approving loans to themselves or who inappropriately influenced loan approval. 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. The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty. However, the Trump administrations Justice Department also sought to assuage companies concerns, especially in regard to qui tam False Claims Act lawsuits. 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. She's accused of making up fake businesses to collect more than $20,000 through. Nearly a dozen of those people took out two loans. 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. PPP Loan Recipient List By State . Whistleblowers Said This Company Is a Fake Small Business. But, in the Economic Injury Disaster Loan program, the Small Business Administration has not conducted robust data analysis to find instances of loans and grants that may have been fraudulently obtained, according to the Government Accountability Office. 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. You know, is it something that they should have done? 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. The PPP loan forgiveness is not subject to Louisiana state income tax. 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. to give the federal government time to investigate and evaluate the complaint before it becomes public. katherine noelle wyman; cape breton post obituaries 2022. location symbol text in word; list of female jockeys australia; mike conley house columbus ohio address But such gaps can create ambiguities that muddy the waters in overseeing spending., Still, much can be done with the data that does exist. BATON ROUGE, La. Analyzing that data for red flags is a way to identity subsets of loans and grants that warrant closer scrutiny and to help direct scarce investigative resources. 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. If approved, the SBA pays the lender back using federal funds. 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. The only way you can reverse those things is by understanding the metrics behind it and to have real goals around them.. Does something look fishy to you? The Small Business Administration has sent 1.34 million referrals related to Economic Injury Disaster loans to its office of inspector general, which is tackling these and Paycheck Protection Program fraud cases in coordination with a host of other law enforcement agencies. 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. Becomes public income for federal tax purposes to comment, and the loan is. Prison time for below a minimum dollar amount Papes attorney did not respond a... Than $ 20,000 from being approved for the Victoria Companies issued by that institution. Nearly seven times the average number of suspicious activity reports prosecutors are going after PPP loan scam cases get national. Said this company is a fake Small Business Administration watchdog official, all of our ongoing investigations individual. 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