As part of an effort to aggressively target individuals and businesses suspect of fraudulently seeking COVID-19 relief funds, the U.S. Attorney’s Office for the Northern District of Georgia issues a press release highlighting developments in some of its larger PPP loan fraud cases.
As reflected in the press release and the cases it describes, COVID-19 relief fraud ranges from businesses seeking excessive funds or using funds on non-business-related expenses to individuals seeking loans on behalf of fictitious businesses. In one case, for example, one defendant allegedly recruited twenty other individuals in order to submit multiple loan applications on behalf of their businesses, only to use that money for personal expenses and to pay those individuals kickbacks. In another case, the defendant (who stars in a reality TV show Love & Hip Hop) submit a loan application for $3.7 million and falsely claimed to own a trucking business with over 100 employees.
For more information on COVID-19 relief fraud cases being brought across the country, including the types of charges brought and the lengths of the sentences imposed in these cases, check out Pate, Johnson & Church’s updated list on COVID-19 relief fraud cases.