COVID Frauds of the Week: DOJ Continues to Crack Down on PPP Fraudsters

As of this week, the Small Business Administration has disbursed over $700 billion in Paycheck Protection Program (PPP) loans to small businesses and non-profits. There are over $100 billion in remaining appropriations, with additional appropriations likely to follow thereafter. With numbers like these, the program has become a magnet for fraudsters seeking to profit from the pandemic. The DOJ has been actively going after PPP fraud; here’s a summary of...

COVID Frauds of the Week: PPP, Puppies, and Securities Fraud

As COVID-19 cases continue to rise across the country, the government has remained vigilant in rooting out fraudsters who seek to capitalize on the crisis to line their own pockets.  Over the past week, federal prosecutors have advanced cases against multiple individuals who fraudulently obtained government funds that were supposed to help struggling small businesses.  And in another colorful case, DOJ busted a “puppy scam” targeting U.S. consumers.  Meanwhile, the...

COVID Frauds of the Week: PPP Loans for Fraudsters Who Like Nice Things

It was another busy week for the DOJ, with at least 13 individuals charged for their attempts to defraud the Paycheck Protection Program out of cash meant to help real businesses with real employees, rather than to fund fraudsters’ extravagant lifestyles and idiotic, selfish behavior. Aditya Raj Sharma, 47, of Maple Grove, Minnesota—fake entrepreneur and apparent fan of swimming—was arrested and charged with wire fraud, for defrauding the Paycheck Protection...

COVID Frauds of the Week: Fraudulently Claiming PPP Loans

This week, DOJ took action against two large alleged frauds on the Paycheck Protection Program.  In Hawaii and North Carolina, individuals were charged with fraudulently claiming loans from the critical relief program. In North Carolina, Tristan Pan found himself charged with wire and bank fraud, plus unlawful monetary transactions, for an alleged scheme to get bogus PPP loans.  He allegedly cooked up a series of applications for entities like “Khaleesi”...

COVID Frauds of the Week: More PPP and PPE Fraudsters, and an Update

Attorney General William P. Barr announced the results of his Payroll Protection Program (PPP) Criminal Fraud Enforcement Action this week, and noted that as of August 8, 2020, over 5.2 million loans had been approved, with a total federal expenditure of over $525 billion in federal business support expenditures. The downside is that Paycheck Protection Program fraudsters have cost the government over $70 million in improperly disbursed funds to date,...

COVID Frauds of the Week: PPP Loan Scams Continue, NFL Player Charged

Another week in the time of COVID-19 brings another round of conspiracy and fraud charges in connection with relief programs designed to provide emergency financial assistance to Americans suffering from the pandemic’s economic fallout. We continue to highlight federal prosecutors’ work to stop scams that take advantage of these crucial programs: NFL player Joshua Bellamy was arrested and charged in a federal court in Florida in connection with a conspiracy...

COVID Frauds of the Week: More Price Gouging and PPP Fraud

As the COVID-19 pandemic remains omnipresent in our daily lives, so too do the fraudsters who seek to capitalize on the crisis and line their own pockets.  Fortunately, government regulators have remained vigilant in rooting out fraud and protecting the public.   Just in the past week, federal prosecutors have busted two large schemes seeking to profit off other's pain. First, the U.S. Attorney’s Office for District of New Jersey announced...

COVID Frauds of the Week: Fraud on the PPP

This week’s COVID-19 frauds centered on (temporarily) successful attempts to receive Paycheck Protection Program (PPP) funds for nonexistent companies and fabricated or inflated employee headcounts. First up is the owner of a wedding planning company that sought personal enrichment via more than $3 million in forgivable PPP loans for his 120 nonexistent employees. Fahad Shah, 44, of Murphy, Texas, was arrested and charged with wire fraud, money laundering, and making...

COVID Frauds of the Week: PPP, PPE, and More

As the COVID-19 pandemic continues to batter businesses and everyday Americans, it has been one of the busiest weeks yet for the government agencies stopping fraudsters who target government relief programs.  In new cases filed this week, the government has gone after alleged bogus sales and price gouging of PPE, new frauds on the Paycheck Protection Program (PPP), healthcare fraud, and more. Secret Service Busts Bogus Mask Seller On Thursday,...

COVID Frauds of the Week: More Fraud on the PPP

As we enter our third month of nation-wide shelter-in-place efforts, fraudsters continue to exploit government relief programs. For the second week in a row, the Eastern District of Texas DOJ is going after a purported small business owner for defrauding the Paycheck Protection Program (PPP). Samuel Yates has been charged with wire fraud, bank fraud, and making false statements for allegedly submitting fraudulent loan applications under the PPP program. According...