Government Loan Programs
This archive displays posts tagged as relevant to fraud in government loan programs. You may also be interested in the following pages:
January 24, 2023
Popular Bank was fined $2.3 million by the Federal Reserve Board following an investigation into its processing of Paycheck Protection Program loans. Popular Bank was approved as a PPP lender by the Small Business Administration, and was required to follow the Bank Secrecy Act and program guidelines, including verification of customer identity and the documentation, investigation, and reporting of suspicious activities. The Board’s Consent Order found that in August 2020, the Bank processed and funded six PPP loans, totaling approximately $1.1 million, despite having detected that the loan applications contained significant indicia of potential fraud. The Bank self-reported to the Board. FedOctober 5, 2022
Quin Ngoc Rudin has been sentenced to 10 years in prison after causing more than $62 million in losses to the IRS and Paycheck Protection Program (PPP) while on supervised release for another fraud scheme. Through his California-based tax preparation business, Mana Tax Services, Rudin and his brother Thanh had filed a series of false PPP loan applications, with supporting false income tax returns, on behalf of professional athletes, small businesses, shell companies, and other business entities. His actions caused over $19 million in losses to the IRS, and over $43 million in losses to the PPP. USAO EDVANovember 16, 2021
Richard Ayvazyan was sentence to 17 years in prison, his wife Marietta Terabelian to six years, and his brother Artur Ayvazyan to five years, following their convictions at trial on charges related to their scheme to fraudulently obtain more than $20 million in Paycheck Protection Program and Economic Injury Disaster Loan COVID-19 relief funds. The defendants used dozens of false identities to submit fraudulent applications for approximately 150 PPP and EIDL loans, supporting applications with false and fictitious documents including fake identity documents, tax documents and payroll records. DOJ; USAO CD CalAugust 26, 2021
The owner of jet charter company All in Jets dba JetReady, Seth Bernstein, has agreed to pay $287,055 to resolve allegations that he misappropriated company Paycheck Protection Program loan proceeds for his personal use. Whistleblower Victoria Hablitzel, a former JetReady employee, reported defendant’s conduct by filing a qui tam action, and will receive a relator’s share of $57,411. DOJ; USAO SD FLAs COVID-19 Stimulus Funds Flow, DOJ Puts Fraudsters on Notice and Calls Whistleblowers “Essential”
Posted 04/2/21
COVID Fraud a Year on from the Onset of the Pandemic
Posted 02/19/21
COVID Frauds of the Week: The DOJ Drumbeat Goes On, with Help from an Investigative Journalist
Posted 02/5/21
An Investigative Journalist Takes a Ride – and Discovers PPE Fraud
In Virginia, Robert S. Stewart, Jr., the founder, and president of an Arlington-based company, ironically named Federal Government Experts LLC,...Top Ten Non-Healthcare False Claims Act Recoveries of 2020
Posted 01/14/21
Top Ten Federal Financial Fraud Recoveries of 2020
Posted 01/14/21
