22 Charged with a scheme to steal $ 11 million from business loans to buy luxury cars and jewelry


Top line

U.S. Department of Justice announced On Thursday, he blamed a total of 22 people under a scheme in which they set up more than a dozen fake businesses to apply and steal $ 11.1 million from the Payment Protection Program, which provided businesses with financial assistance to tackle the economic crisis due to the coronavirus pandemic. … …

Key facts

Federal prosecutors charged 22 people from five states, Michigan, Georgia, South Carolina, Florida and Illinois with crimes including electronic fraud, banking fraud, and money laundering.

According to court documents, the group applied for PPP loans on behalf of 14 shell companies and requested about $ 800,000 for each of them.

To get the loans, the group reported that each business had about 60 employees and had to pay $ 300,000 a month in payroll expenses, and they submitted a fake form to the IRS to report payroll taxes.

Six of the 22 people, including Operation Leader Darrell Thomas of Duluth, Georgia, have already pleaded guilty to their role in the fraudulent scheme, and one, Khalil Gibran Green of Cleveland, has already been sentenced to more than three years in prison. jail.

Thomas, who confessed to the fraud, agreed to hand over items purchased with the stolen funds, including luxury cars such as the Acura NSX and Range Rover, as well as jewelry, including a gold Rolex.

Key background

The group is the latest accused of trying to defraud the government for PPP funds. Earlier this month, a California man was arrested for the theft of $ 3.6 million in PPP loans and loans in connection with economic damage. He has submitted at least 27 applications for PPP loans on behalf of others and on behalf of others. He was charged with money transfer and banking fraud. In June, a Florida man promised guilty to embezzle $ 24 million from PPP loans using fictitious companies. He pleaded guilty to conspiracy to commit banking fraud and could have spent up to 30 years in federal prison.

Big number

800 billion dollars. Here’s how much money the US Small Business Association has. on condition businesses across the country. However, he has yet to reveal how much of this has been channeled into fraudulent claims. As of May Ministry of Justice charged 474 people have been the victims of fraud in an attempt to steal aid funds in connection with the Covid-19 coronavirus.

Further reading

Federal PPP Loan Fraud Fees are intended to remind you that these loans are not “free money” (Forbes)

Justice Department Says Nearly 500 People Accused of Covid Fraud (Forbes)

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