Source: Office of United States Attorneys
PORTLAND, Maine: U.S. Attorney Darcie N. McElwee today announced the filing of lawsuits against three individuals alleging they fraudulently applied for and received CARES Act pandemic relief funds:
• Jazmyn Paduani (Manchester, New Hampshire) is alleged to have fraudulently applied for, received, and received forgiveness for a Paycheck Protection Program (PPP) loan.
• Devin Vangel (Colorado Springs, Colorado) is alleged to have fraudulently applied for and received a COVID-19 Economic Injury and Disaster Loan Emergency Advance.
• Antoinette Avery (Holden, Maine) is alleged to have fraudulently applied for, received, and received forgiveness for a PPP loan.
As alleged in each of the complaints, the defendants either misrepresented the annual income and payroll costs of their businesses or misrepresented that they operated any business at all. Two defendants who received PPP loans also each received forgiveness for the loans by allegedly misrepresenting how the loan funds were used.
The complaints against Paduani, Vangel, and Avery were brought by the United States under the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). The FCA provides that any person who “knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval” or “knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim” is liable to the United States for three times the amount of damages which the United States sustains, plus a civil penalty for each FCA violation. For FCA violations assessed after February 12, 2024, the minimum penalty per violation is $13,946.
Section 951 of FIRREA provides that the Attorney General may recover civil penalties against persons who knowingly make a false statement for the purpose of influencing a decision by the Administrator of the SBA or to obtain a loan, money, or anything of value under the SBA’s business loan program, including the PPP. For FIRREA violations assessed after February 12, 2024, the maximum penalty per violation is $2,449,575.
The complaints filed by the United States are a result of the U.S. Attorney’s Office’s ongoing efforts to identify and investigate fraudulently obtained pandemic relief funds. Recent amendments to federal law have extended the statute of limitations for civil and criminal fraud enforcement actions concerning PPP and EIDL loans from six to ten years.
The civil actions are docketed United States v. Paduani, 24-cv-00439-JCN (D. Me.); United States v. Vangel, 24-cv-00440-JCN (D. Me.); and United States v. Avery, 24-cv-00441-KFW (D. Me.).
The claims asserted against the defendants are allegations only. There has been no determination of liability.
###