One case involved applications for hundreds of allegedly fraudulent Economic Injury Disaster loans and at least a $1.3 million loss to the federal government. 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. 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. 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. We hear reports of arrests and arraignments for PPP loan cases involving only $10,000 or $15,000. Another large identity theft case led to charges against Jeremie Saintvil of Delray Beach, Florida in March. 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 The Justice Department said law enforcement arrested defendants in Miami on Wednesday and Thursday who officials allege are involved in a "criminal ring" that attempted to steal $24 million in. The defendants were arrested this morning. 5 min read. We dont have the capacity to work everything that comes in, Grossman told POGO. 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. Dr. James Hobley: When should you be screened for colon cancer? As the lending programs ramped up last summer, there was a spike in suspicious activity reports from banks and other lenders flagging potential fraud. All rights reserved. The DOJ says this ill-gotten money was in many cases used to buy luxury personal items like cars, homes, vacation trips, and jewelry. 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. 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. 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. AGs Office announces more than 50 arrests connected to Paycheck Protection Program fraud. 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. Louisiana. 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. to fraudulently obtain the loan money. 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 loans have to be repaid with low interest. Greenberg is a friend of Florida Republican Matt Gaetz, and both were identified in a recent New York Times report as having allegedly paid women for sex, as well as potentially a 17-year-old girl. The program worked like this. Those who suspect PPP fraud or may have been a victim of such fraud should contact the National Center for Disaster Fraud (NCDF) hotline at 866-720-5721. Even if the Justice Department declines to join a case, the whistleblower and their private counsel can continue to pursue it. | 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. 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. One case involves Dinesh Sah, a Dallas-area man, who obtained $17.3 million after having sought a $24.8 million loan. 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. For example, in the city of Gonzales, there were 70 people claiming to own a barbershop who applied for loans. Whistleblowers Said This Company Is a Fake Small Business. Nearly 11.5 million people filed applications, resulting in more than $792 billion worth of loans. ggdc fulfill service phone number; copenhagen, denmark circle houses for sale; living together in kuwait; brandi carlile brother jay; houston film festival; terrenos de venta en palmview, tx; louisiana ppp loan arrests. 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. 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. What happens when the watchdog tasked with overseeing the most powerful law enforcement agency in the country doesnt do its job? Secure .gov websites use HTTPS Giving back to the community through a variety of venues & initiatives. 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. PPP Loan Recipient List By State Louisiana 217,332 TOTAL PPP LOANS $12.2B TOTAL LOAN AMOUNT $56,095 AVERAGE PPP LOAN 6 AVG COMPANY SIZE Louisiana has a total of 217,332 businesses that received Paycheck Protection Program (PPP) loans from the Small Business Administration. It soon became apparent that the Economic Injury Disaster Loan programs setup also made it particularly susceptible to fraud. 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 July, the agencys inspector general warned of potentially rampant fraud in the Economic Injury Disaster Loan program. Check out bed occupancy rate of hospitals. This table shows the top 5 industries in Louisiana by number of loans awarded, with average loan amounts and number of jobs reported. The PPP loan forgiveness, Fairs, Festivals, and Other Special Events, The Importance of Protecting Client Tax Information, 2022 Practitioner Tax Update Seminar Schedule, Update Many believe a high percentage of these grants were stolen, but some federal prosecutors with heavy caseloads may find it hard to justify 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. You can search the SBA's entire PPP loan data below. 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. Nearly a dozen of those people took out two loans. 2020 Louisiana Individual Income Tax returns and payments are due Monday, May 17, 2021. The Justice Department has brought criminal charges against at least 209 individuals in 119 cases related to Paycheck Protection Program (PPP) fraud since banks and other lenders began processing loan applications on behalf of the Small Business Administration on April 3, 2020. According to the House Select Subcommittee on the Coronavirus Crisis, the SBA Office of Inspector General has received nearly 750,000 referrals of suspected identity theft related to the program over the last year. New Orleans, Louisiana 70130. However, the Trump administrations Justice Department also sought to assuage companies concerns, especially in regard to qui tam False Claims Act lawsuits. POGOs analysis of the first full years worth of Paycheck Protection Program fraud cases found that in at least: Some of these cases involve multiple defendants. 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. For more information on the Department of Justices response to the pandemic, please visit https://www.justice.gov/coronavirus. 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. 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. The PPP loans are forgivable under certain conditions and the loan forgiveness is not taxable income for federal tax purposes. (212) 637-2600, Human Trafficking & Child Sexual Exploitation, Department of Justice Harassment Prevention Resource, Download Ngoc Manh Nguyen et al. Byron.Henderson@la.gov, On Friday, Feb. 12, LDR will begin accepting tax returns through, , the states free, electronic tax filing application; or through commercially available tax filing software. Banks and other lenders have been filing a huge number of suspicious activity reports to the Treasury Departments Financial Crimes Enforcement Network (better known as FinCEN) related to the Paycheck Protection Program and the Economic Injury Disaster Loan program. In addition to helping head off further fraud, conducting robust data analysis could also help the Small Business Administration assess how well its relief programs are reaching small businesses in underserved communities, such as those owned by people of color. Please click here for further information. Yet if there is sufficient evidence, the government can still seize stolen money even in the absence of criminal charges. Qui tam complaints are filed under seal Law enforcement insiders say many more pandemic loan fraud cases will be brought in the months and years ahead. To disguise the fraud, family members moved the proceeds through several bank accounts held in different names, according to the Justice Department. Louisiana has a total of 217,332 businesses that received Paycheck Protection Program (PPP) loans from the Small Business Administration. Shes accused of making up fake businesses to collect more than $20,000 through a PPP loan and another $500,000 in prepaid debit cards through unemployment claims. Assistant United States Attorneys Michael C. McGinnis and Sagar K. Ravi are in charge of the prosecution. edgewater hotel haunted; can uk consultant doctors work in usa; is spitfire a compliment 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. However, not everyone taking part in the federal program was looking to keep their business doors open. 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. 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. The Justice Department brought civil claims against the company under both the False Claims Act and Financial Institutions Reform, Recovery and Enforcement Act. Additionally, CARES II provides up to $300 in weekly supplemental unemployment benefits. The disaster loan programs strongest internal control is the ability to receive directly from the IRS recent tax transcripts, wrote James Rivera, head of the SBAs Office of Disaster Assistance, last fall. Louisiana Workforce Commission Suspected Fraud Form. Complaints can also be filed online here. Louisiana Department of Revenue Identity Theft Affidavit, Louisiana Workforce Commission Suspected Fraud Form. The Veterans Administration, Office of the Inspector General, is an active member of the PRAC Fraud Task Force. 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. With more time, we might have been able to implement some preemptive fraud measures, but we knew there would be some fraud, said Kennedy. 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. It Got a PPP Loan. 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. 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. BATON ROUGE, La. According to the Justice Department, Didier Kindambu obtained two loans by creating fraudulent payroll documentation for each business.. More due diligence on the part of lenders or the Small Business Administration could have prevented at least some instances of fraud, especially when applicants appear to have inflated or fabricated payroll expenses or used defunct or bogus companies to illicitly obtain loans. Has the curve flatten in my town? 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. Use our searchable database to see who in Louisiana received funds. Click on a company's name to see additional loan details. 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. PPP Loan Recipient List By State . The PPP loan was created through the March 2020 CARES Act as a lifeline for businesses struggling through the coronavirus pandemic. And these cases are just the beginning. 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. 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. 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. Using that public data, the 9 News Investigators took a close look at PPP loans given out in Louisiana. More than half of that amount$246 millionactually went to accused fraudsters. The PPP loan forgiveness is not subject to Louisiana state income tax. More than 1,400 institutions had filed SARs related to PPP, and more than 900 institutions had filed SARs related to EIDL.. 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 is your state and county equivalent level look at how many have gotten a dose or doses of the COVID-19 vaccine. 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. EVERY advertised under various aliases on Facebook to recruit individuals to obtain money from the PPP program. Its the first public case of fraud in these pandemic loan programs attributed to corruption within the agencys own ranks. 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