Ex-SBA Employee Implicated in COVID Loan Fraud
During the pandemic, the U.S. Small Business Administration saved thousands of small businesses by distributing interest-free loans and forgiving them if the money was spent on payroll or other business overhead. However, a former SBA employee from Miami has recently been charged with defrauding the very agency that she worked for. She is the first ex-SBA employee to be charged with defrauding the COVID loan program called the Paycheck Protection Program. She is also accused of defrauding other loan programs, according to federal authorities. The 37-year-old woman from Hialeah is accused of helping others forge tax returns, and make false statements to secure large loans from the program illegally.
The defendant was arrested on charges of conspiracy, wire fraud, and bank fraud. She faces a grand jury indictment at the end of July. Since Congress adopted the pandemic relief program run by the SBA, the State of Florida has been a hotbed of PPP loan fraud committed by hundreds of different people. Even law enforcement officers have faced charges related to PPP loans. Most of the defendants are accused of falsifying their loan applications to increase the size of the loan. This includes falsified employee data, falsified revenue, falsified income, and falsified tax records. Several used the money to make luxury purchases as opposed to helping their business.
Analyzing the charges
During her employment, authorities say that the defendant engaged in numerous schemes to defraud the Paycheck Protection Program and Economic Injury Disaster Loan Program. She also defrauded credit unions and pandemic-related rental programs, according to the complaint. The defendant is accused of helping a ring of six people in Miami-Dade County by providing falsified tax forms of at least 10 PPP loan applications that led to the disbursement of hundreds of thousands of dollars. Most of the members of that ring have been indicted on charges of fraudulently receiving more than $800,000 in PPP loans. Most agreed to plead guilty to fraud charges, the court records show.
On Feb. 10, 2021, the defendant allegedly submitted a PPP loan application in the name of her company, Upscale Credit Lounge, which included a falsified tax form that reported revenue in the amount of $103,674 and a profit margin of $81,860. Eleven days later, a different lender approved a second loan for $17,052, according to the complaint. On Feb. 19, 2021, the defendant (while still employed by the SBA) submitted another PPP loan application for a different business called DA TRAP. In her application, the defendant claimed that she had four employees and an average monthly payroll of $14,191. A private lender approved a loan for $35,477. According to authorities, all of the information on her application was fabricated.
Talk to a Tallahassee, FL White Collar Criminal Defense Lawyer Today
Have you been charged with fraud, embezzlement, or related white-collar crimes? If so, call Tallahassee criminal defense lawyer Luke Newman, P.A. today to schedule an appointment, and we can begin preparing your defense immediately.
Source:
miamiherald.com/news/local/article289912979.html
