Category: USDJ National Center for Disaster Fraud

Source: United States Department of Justice (National Center for Disaster Fraud)

           MONTGOMERY, Ala. – On January 6, 2025, a federal judge ordered that 39-year-old Kyle Nathan Carlisle, a resident of Phenix City, Alabama, receive a sentence of 92 months in prison after pleading guilty to wire fraud and money laundering charges related to loans received through the Coronavirus Aid Relief and Economic Security (CARES) Act and the Economic Injury Disaster Loan (EIDL) program, announced Acting United States Attorney Kevin Davidson. Following his prison sentence, Carlisle will be on supervised release for three years. Federal inmates are not eligible for parole. 

           The CARES Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act established the EIDL program, which was directly administered by the Small Business Administration. This financial assistance program was designed to help eligible small businesses by giving them working capital to make regular payments for operating expenses such as payroll, rent or mortgage expenses, utilities, or business debt.

           According to his plea agreement and other court records, between July 2020 and April 2021, Carlisle applied for 23 EIDL loans online, many of which were duplicates. Five of the loans were ultimately funded. Carlisle made multiple false statements and misrepresentations in his applications, including the businesses’ revenue, the number of employees, and that he had no felony convictions in the last five years.  Records indicate he had two 2016 felony convictions in Russell County, Alabama. Carlisle further admitted to submitting forged documents with the applications including fake or altered business licenses. As a result of his scheme, Carlisle received approximately $600,000 for four separate applications. Part of the funding was recovered before it cleared Carlisle’s accounts. The total amount sought in the scheme was $3,470,832. Carlisle was also convicted of money laundering for using the illegal proceeds to purchase a vehicle, among other unauthorized personal expenses. 

           In addition to the prison sentence, the judge ordered that Carlisle pay the Small Business Administration $547,846.54 in restitution. Carlisle was also ordered to forfeit the same amount to the United States government.

           “Kyle Carlisle fabricated lies and forged documents in a scheme to divert taxpayer money for his own self-enrichment,” said Acting U.S. Attorney Davidson. “The EIDL program was intended to provide relief to actual struggling businesses during a pandemic that created an enormous economic burden on the entire country. My office remains committed to working with our law enforcement partners to aggressively pursue those who engage in activities that threaten the integrity of government programs.”

           The FBI Mobile Field Office investigated this case, with assistance from the Small Business Administration Office of Inspector General and the Alabama Department of Labor.  Assistant United States Attorney J. Patrick Lamb prosecuted the case. 

           Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Source: United States Department of Justice (National Center for Disaster Fraud)

Defendants Allegedly Committed Aggravated Identity Theft by Using Identities of Victims in Connection with a Scheme to Wrongfully Obtain More than $1 Million in Unemployment Insurance Benefits

Source: United States Department of Justice (National Center for Disaster Fraud)

RICHMOND, Va. – Two active-duty U.S. Army soldiers pled guilty to, and a third soldier was charged with, obtaining fraudulent loans through a COVID-19 relief program while stationed at Fort Gregg-Adams.

Major Eduwell Jenkins, 42, pled guilty today to defrauding the Small Business Administration (SBA) by obtaining a fraudulent loan through the Paycheck Protection Program (PPP). Also today, a federal grand jury returned an eight-count indictment charging Sergeant First Class Crispin Antonio Abad, 42, with obtaining two fraudulent PPP loans while on active duty. On Nov. 5, Sergeant Malaysia Stubbs, 30, pled guilty to obtaining a fraudulent PPP loan.

According to their plea documents, Jenkins and Stubbs filed for fraudulent PPP loans in 2021. Though they were active-duty soldiers, Jenkins and Stubbs falsely represented to the SBA that they each had jobs separate from their military employment that generated over $100,000 in annual income. To substantiate this false income, Jenkins and Stubbs generated fabricated Internal Revenue Service (IRS) tax return forms, submitting them to the SBA as supporting documentation for the PPP applications. Jenkins and Stubbs never submitted these falsified tax return forms to the IRS as part of legitimate tax filings. Based on their false submittals, Jenkins and Stubbs each received over $20,000 in government-backed PPP loans to which they were not entitled.

Separately, an indictment alleges that, while stationed at Fort Gregg-Adams in 2021, Abad was responsible for, among other things, enforcing the Army’s Honor Code and Standards of Conduct.  In April 2021, Abad allegedly applied for two fraudulent PPP loans, claiming exactly $100,000 in income in 2020 from a business named “Granny’s Delight.” Abad allegedly represented that his business was to sell his grandmother’s pies. To substantiate this false income, Abad allegedly generated a fabricated IRS tax return form, submitting this form to the SBA as supporting documentation for the PPP applications. According to the indictment, Abad never submitted this falsified IRS tax return form to the IRS as part of legitimate tax filings. As a result of his false submittals, Abad allegedly received over $41,000 in PPP loans to which he was not entitled. Abad then allegedly used fraudulently obtained funds for various luxury and recreational spending, including purchases at the Fort Gregg-Adams Golf Course, Ace Adventure Resort in West Virginia, Victoria’s Secret, Sunglass Hut, and the Virginia ABC Store. Additionally, Abad allegedly purchased jewelry at Reeds Jeweler and withdrew hundreds of dollars in fraud proceeds at the MGM Casino in National Harbor, Maryland.   

Jenkins is scheduled to be sentenced on March 25, 2025. Stubbs is scheduled to be sentenced on March 20, 2025. Jenkins and Stubbs face a maximum penalty of 5 years in prison. If convicted, Abad faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Keith K. Kelly, Special Agent in Charge of the Department of the Army Criminal Investigation Division’s Fraud Field Office; and Christopher Dillard, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement.

Assistant U.S. Attorney Avi Panth is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-139 (Jenkins), Case No. 3:24-cr-159 (Stubbs), and Case No. 3:24-cr-178 (Abad).

An indictment is merely an accusation. A defendant is presumed innocent until proven guilty.

Source: United States Department of Justice (National Center for Disaster Fraud)

Defendant Name Sentencing Information Charges Loan Amount Requested

Sirdell L. McCullough

Age 26, Shreveport

• 30 months in prison
• $20,382 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Roderguiz Henry

Age 27, Shreveport

• 24 months in prison
• $20,260 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,260 / PPP

Johntrell Crutchfield

Age 24, Shreveport

• 71 months in prison
• $20,832 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Deanthony D. Johnson

Age 24, Shreveport

• 46 months in prison
• $28,575 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,575 / PPP

$8,000 / EIDL

Deaaundrakous Latrea Hagger

Age 25, Shreveport

• 16 months in prison
• $1,500 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,833 / PPP

$20,833 / PPP

Nico J.  Stewart

Age 36, Shreveport

• 5 years of probation

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$4,000 / EIDL

$1,000 / EIDL

Timothy D.  Vasher

Age 22, Shreveport

• 19 months in prison
• $20,832 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Destane Glass

Age 23, Shreveport

• 37 months in prison
• $104,160 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Xavien R. Beasley

Age 24, Bossier City

• 15 months in prison
• $30,050 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$10,000 / EIDL

Quinterrius D. Brown

Age 23, Shreveport

• 24 months in prison

• Conspiracy to Commit Wire Fraud

$30,800/ EIDL

Not funded

Toronco Rashard Loston

Age 26, Shreveport

• 24 months in prison

• Conspiracy to Commit Wire Fraud

$20,832 / PPP

Not funded

$201,100 / EIDL

Not funded

Dewonnie Brown

Age 55, Shreveport

• 5 years of probation
• $60,498 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

$20,800 / PPP

$20,833 / PPP

$20,833 / PPP

Joshua Dominique

Age 25, Shreveport

• 16 months in prison
• $20,832 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Kardarius Jenkins

Age 23, Shreveport

• 15 months in prison
• $20,832 in restitution

• Conspiracy to Commit Wire Fraud

$20,832 / PPP

Jasmine Glass

Age 23, Shreveport

• 15 months in prison
• $29,165 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$8,332 / PPP

Tramaine Taylor

Age 28, Shreveport

• 5 years of probation
• $20,832 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Antoria Johnson

Age 26, Shreveport

• 5 years of probation
• $40,916 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,458 / PPP

$20,458 / PPP

Joketa Baulkman

Age 41, Shreveport

• 5 years of probation
• $38,010 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$19,005 / PPP

$19,005 / PPP

Tyneal Johnson

Age 37, Coushatta

• 5 years of probation
• $41,633 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,833 / PPP

$20,800 / PPP

Cierra Fleming

Age 23, Shreveport

• 5 years of probation
• $20,207 in restitution

• Conspiracy to Commit Wire Fraud

$20,207 / PPP

Tramarciea Ruffins

Age 31, Shreveport

• 33 months in prison
• $20,415 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,415 / PPP

Olivia Thomas

Age 28, Shreveport

• 3 years of probation
• $62,496 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Samarrian Kingston

Age 26, Shreveport

• 24 months in prison
• $101,360 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,272 / PPP

Lakeah Gipson

Age 28, Bossier City

• 5 years of probation
• $20,058 in restitution

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,058 / PPP

Source: United States Department of Justice (National Center for Disaster Fraud)

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Harry T. Chavis, Jr., Special Agent in Charge of IRS Criminal Investigation in New England, today announced that YASIR G. HAMED, 59, of Woodbridge, has been charged by federal criminal complaint with offenses stemming from an alleged scheme to defraud a COVID-19 pandemic relief program of hundreds of thousands of dollars.

Hamed was arrested on November 13, 2024.  He appeared before U.S. Magistrate Judge Robert M. Spector in New Haven and was released on a $500,000 bond.

In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act provided emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program (“PPP”).  The PPP was overseen by the U.S. Small Business Administration (“SBA”), and individual PPP loans were issued by private lenders, which received and processed PPP applications and supporting documentation, and then made loans using the lenders’ own funds, which were guaranteed by the SBA.

As alleged in court documents and statements made in court, Hamed, an accountant, had an ownership interest or representative relationship with several New Haven-based businesses, including Access Consulting and Professional Services Inc.; Connecticut Medical Transportation Inc.; Arabic Language Learning Program Inc.; Institute for Global Educational Exchange Inc.; Access Medical Transport Inc.; Ikea Car & Limo Inc.; Center of the World Tours, North America LLC.; and Sudanese American Friendship Association Inc.  Between June 2020 and September 2021, Hamed submitted fraudulent PPP loan applications on behalf of these companies, overstating employee numbers and average monthly payroll, and making other fraudulent representations.  As part of the applications, he submitted false tax filings that had never been filed with the IRS.

It is further alleged that Hamed submitted PPP loan applications on behalf of companies owned by his clients.  In at least one instance, Hamed convinced the owner of a business, which he knew was not active and had no employees, to seek PPP funding.  Hamed prepared the paperwork for the PPP application and then took a significant portion of the loan proceeds.

Through this alleged scheme, Hamed received more than $700,000 in loan proceeds for himself and his family, and significant kickbacks from his clients. Hamed used the funds for personal expenses, including education expenses for a family member, and for downpayment on a $880,000 house in Woodbridge that he purchased in October 2020.

The complaint charges Hamed with bank fraud, which carries a maximum term of imprisonment of 30 years; wire fraud, which carries a maximum term of imprisonment of 20 years; and engaging in illegal monetary transactions, which carries a maximum term of imprisonment of 10 years.

U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.  The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Source: United States Department of Justice (National Center for Disaster Fraud)

MIAMI – On Nov. 15, Conrad Brandon Bernard, 24, pled guilty in Fort Lauderdale, Fla., to committing bank fraud and identity theft during a scheme to fraudulently obtain over $1 million in Covid-19 relief loans and unemployment compensation payments. 

During the COVID-19 outbreak, the Economic Injury Disaster Loan (EIDL) program was utilized to provide loan assistance to small businesses and other eligible entities in need. The U.S. Department of Labor’s unemployment insurance programs were created to provide unemployment benefits to eligible workers who become unemployed through no fault of their own and meet certain other eligibility requirements.

Beginning as early as in or around May 2020 and continuing through on or about December 2022, Bernard carried out a scheme to defraud the EIDL and unemployment insurance programs. Bernard fraudulently applied for fourteen EIDLs using the name and personal identifying information (PII) of other individuals without their knowledge or consent. Once the U.S. Small Business Association (SBA) approved the fraudulent loan applications, the SBA transferred the EIDL funds to various bank accounts at Bernard’s direction. Bernard opened and operated these accounts with the name and PII of other individuals without those individuals’ knowledge or consent. Bernard then transferred those funds from the bank accounts to other accounts under his control including various accounts he created using the name and PII of other individuals without their knowledge or consent. 

Bernard also transferred or withdrew fraudulently obtained unemployment benefit funds from bank accounts he opened and operated using the name and PII of other individuals without their knowledge or consent. These unemployment benefits were paid from several states, including West Virginia and Arizona. The unemployment benefit funds were fraudulently obtained because the name and PII of other individuals were used to apply for the unemployment benefits without those individuals’ knowledge or consent. In all, Bernard fraudulently obtained $1,083,340 in EIDL funds and unemployment benefits.

During the investigation, law enforcement also discovered that Bernard possessed numerous false identifications including counterfeit passport cards, false Florida driver’s licenses and identification cards, the means to create false identification, and the PII of several thousand individuals including their names, dates of birth, and Social Security numbers. 

Bernard is scheduled to be sentenced on February 5, , 2025, before U.S. District Judge William P. Dimitrouleas in Fort Lauderdale. He faces up to 30 years in prison for the bank fraud convictions, to be followed by a mandatory consecutive term of 2 years in prison for the aggravated identity theft conviction. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, U.S. Attorney Roger B. Handberg for the Middle District of Florida, Acting Special Agent in Charge Michael Conklin of the U.S. Department of State’s Diplomatic Security Service (DSS) Miami Field Office, and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) made the announcement.

The DSS Miami Field Office and BSO investigated the case.

Assistant U.S. Attorney Deric Zacca from the Southern District of Florida and Assistant U.S. Attorney Suzanne Nebesky from the Middle District of Florida are prosecuting the case. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

On Sept. 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud.  The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60168.

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Source: United States Department of Justice (National Center for Disaster Fraud)

Vanessa R. Avery, United States Attorney for the District of Connecticut, announced that BILL G. MAKROS, 58, of Danbury, was sentenced today by U.S. District Judge Vernon D. Oliver in Hartford to seven months of imprisonment, followed by two years of supervised release, for tax evasion.

According to court documents and statements made in court, Makros owned and operated a tree service business known as Budget Tree and Stump Removal Service, LLC.  From 2016 through 2020, Makros’ business gross receipts totaled $1,426,915, but he concealed his income by receiving customer payments in the form of checks made payable to “cash” or to him personally, and by depositing the checks into bank accounts other than his business bank account.  At times, he also cashed check payments and did not deposit the cash into any business or personal accounts.  For the 2016 through 2020 tax years, Makros failed to file his federal individual tax returns, and failed to pay taxes totaling $140,694.

In addition, during the COVID-19 pandemic, Makros received two pandemic relief loans totaling $31,200.  As part of the application process, Makros submitted IRS Schedule C forms for his business that purported to be part of his tax returns for 2019 and 2020, even though he had not filed tax returns with the IRS for those years.  The loans were subsequently forgiven.

Judge Oliver ordered Makros to pay $137,672 in restitution to the IRS.

On July 1, 2024, Makros pleaded guilty to tax evasion.

In 2008, Makros was convicted in Connecticut state court of two counts of failing to pay over sales tax.

Makros, who is released on bond, is required to report to prison on January 7, 2025.

This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division.  The case was prosecuted by Assistant U.S. Attorney Anastasia King.

Source: United States Department of Justice (National Center for Disaster Fraud)

Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Stephen L. Gurba (68, Belleair) with wire fraud, making a false statement to a financial institution, and aggravated identity theft. If convicted, Gurba faces a maximum penalty of 20 years in prison on each count of wire fraud (2 counts), 30 years in prison on the false statement count, and a 2-year mandatory term of imprisonment on the aggravated identity theft counts (2 counts). The indictment also notifies Gurba that the United States intends to forfeit approximately $1.2 million, which is alleged to be traceable to proceeds of the offenses.

According to court documents, between March and June 2020, Gurba submitted false and fraudulent Economic Injury Disaster Loan (EIDL) applications and supporting documentation on behalf of Big Red Express Trucking, LLC and Zenith Express, LLC. To obtain approval and funding for the Big Red and Zenith EIDL loans, Gurba fraudulently assumed the identity of his former business partner who passed away in 2019, listed his former business partner’s name, signature, and other means of identification on the EIDL loan applications certifying under criminal penalty that the applications were true and correct. Gurba also used his deceased business partner’s name and forged his signature on the EIDL loan authorization agreements and loan notes he submitted to the Small Business Administration (SBA). During post-loan related communications with the SBA, Gurba continued to impersonate his deceased business partner. As a result of his fraudulent scheme, Gurba induced the SBA to approve and fund the Big Red and Zenith EIDL loans.

Additionally, Gurba applied for a Paycheck Protection Program (PPP) loan on behalf a Big Red from an SBA authorized financial institution. Gurba certified and signed under criminal penalty that all the PPP loan proceeds would be spent on payroll, mortgages, rent, or other SBA authorized expenses. In reality, Gurba used the majority of the PPP proceeds to enrich himself, family members, payoff unrelated business debts, and other impermissible expenses. As a result of Gurba’s false statement, the financial institution approved and funded a $955,448.75 PPP loan to Big Red.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Small Business Association – Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit Justice.gov/Coronavirus and Justice.gov/Coronavirus/CombatingFraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.

Source: United States Department of Justice (National Center for Disaster Fraud)

PITTSBURGH, Pa. – A resident of Washington, Pennsylvania, pleaded guilty in federal court to charges of wire fraud, United States Attorney Eric G. Olshan announced today.

Walter Holt III, 35, pleaded guilty to two counts before Senior United States District Judge Nora Barry Fischer.

In connection with the guilty plea, the Court was advised that, on or about March 12 and May 27, 2021, Holt prepared and submitted falsified Paycheck Protection Program (PPP) COVID-19 relief loan applications for Charleroi, Pennsylvania, borrowers, for which he took a fee.

Judge Fischer scheduled sentencing for January 31, 2025. The law provides for a maximum total sentence of up to 40 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Holt.

Source: United States Department of Justice (National Center for Disaster Fraud)

MIAMI – Yesterday, Daniel Fleureme, 56, of Miami-Dade County, a former Miami-Dade Corrections and Rehabilitation Department (MDCRD) Corrections Officer, pled guilty to wire fraud for defrauding a COVID-19 relief program by fraudulently obtaining an Economic Injury Disaster Loan from the U. S. Small Business Administration (SBA).

The Coronavirus Aid, Relief and Economic Security (CARES) Act was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act were Economic Injury Disaster Loans (EIDLs) to eligible small businesses experiencing substantial financial disruptions. These EIDLs were provided directly to borrowers by the SBA.

On July 27, 2020, Fleureme, while he was employed full-time by MDCRD as a Corrections Officer, submitted to the SBA a false and fraudulent EIDL application claiming to be the 100% owner of a sole proprietorship operating under the company legal and DBA names of “Daniel Fleureme.” In this fraudulent application, Fleureme claimed that he had owned the business since its creation on Feb. 15, 2017, and stated that the business had three employees as of Jan. 31, 2020. Fleureme’s EIDL application also falsely certified that for the 12-month period prior to Jan. 31, 2020, his sole proprietorship had gross revenues of $450,000 and a cost of goods sold of only $97,000. As a result of this fraudulent EIDL application, Fleureme received approximately $150,000 in EIDL proceeds from the SBA.

He is scheduled to be sentenced on Jan. 7, 2025, at 11:00 a.m., before U.S. District Judge Jose E. Martinez in Miami. Fleureme faces up to 20 years in prison for the wire fraud conviction. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney for the Southern District of Florida Markenzy Lapointe and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, Inspector General Felix Jimenez of the Miami-Dade County Office of Inspector General (M-DC OIG), and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region, made the announcement.

The FBI’s Miami Area Corruption Task Force, which includes task force officers from the M-DC OIG, working in conjunction with SBA OIG, investigated the case.  Assistant U.S. Attorney Edward N. Stamm is prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

On Sept. 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud.  The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20407.

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