Category: USDJ National Center for Disaster Fraud

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

WAYCROSS, GA:  A Coffee County man was sentenced to federal prison and ordered to pay more than $1.3 million in restitution for fraudulently obtaining funds intended to help businesses struggling financially during the pandemic.

Kyle Waldron, 59, of Douglas, Ga., was sentenced to 15 months in prison after pleading guilty to money laundering, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Waldron to pay $1,371,219 in restitution. During the investigation federal agents seized $326,461 from Waldron’s bank accounts, which is subject to forfeiture. Judge Wood ordered Waldron to serve three years of supervised release upon completion of his prison term. There is no parole in the federal system.

“Kyle Waldron committed brazen fraud and theft from pandemic relief funds,” said U.S. Attorney Steinberg. “We continue to collaborate with our law enforcement partners to hold accountable those who would illegally access these funds to fuel their own greed.”

Enacted by Congress in 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided more than $650 billion to financially struggling small businesses during the COIVD-19 pandemic. Those funds were disbursed primarily as grants and forgivable loans through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) through the Small Business Administration (SBA).

As described in court documents and testimony, an investigation by Internal Revenue Service Criminal Investigations and the U.S. Secret Service determined that Waldron submitted at least 20 different PPP or EIDL applications on behalf of multiple businesses and individuals. To obtain loan funds, Waldron submitted multiple fake IRS forms in support of the funding applications, and falsely claimed large numbers of non-existent employees and inflated revenues in fraudulent requests for PPP and EIDL funding. Those applications resulted in SBA disbursements of more than $1.3 million.

“The sentence, along with the restitution, serves as a notice to those who committed COVID-19 fraud that IRS Criminal Investigation special agents and our partners are still conducting investigations and holding them accountable,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office.

“Waldron believed that he could commit fraud and steal money designated to help businesses struggling to survive during the COVID-19 pandemic,” said J. Craig Reno, Resident Special Agent in Charge, U.S. Secret Service Savannah Resident Office. “This sentence should serve as a warning to potential thieves that they will be caught and prosecuted. As part of our dual protective and investigative mission, we are tasked with safeguarding the United States’ financial and payment systems from criminal exploitation. The U.S. Secret Service is committed to investigating cases of fraud and we work hand-in-hand with our law enforcement partners to pursue justice for victims of financial crime across the country.”

The case was investigated by Internal Revenue Service Criminal Investigations and the U.S. Secret Service and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys Matthew A. Josephson and J. Bishop Ravenel. 

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.

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

Note: View the CFETF 2024 Report press release here. View the Report here. View the fact sheet here.

Remarks as Delivered

Thanks so much, Gene, for that introduction and for your leadership on this issue.

Almost three years ago, I established the COVID-19 Fraud Enforcement Task Force to deter, detect, and disrupt pandemic fraud wherever it occurs.

Since that time, the COVID-19 public health emergency has ended, but the Justice Department’s work to identify and prosecute those who stole pandemic relief funds is far from over.

Today, we are announcing the results so far of the COVID-19 Fraud Enforcement Task Force — a team led by the Justice Department and made up of close to 30 agencies across the federal government.

The agencies have worked together to:

• Charge more than 3,500 defendants;
• Seize or forfeit over $1.4 billion in stolen COVID-19 relief funds; and
• File more than 400 civil lawsuits resulting in court judgments and settlements.

I am proud of the work of the Task Force. But that work is not done.

We look forward to working with Congress to ensure that the Task Force can continue its efforts.

The Department supports legislation to extend the statute of limitations for all COVID-19 fraud-related offenses; to continue to adequately resource our anti-fraud efforts; and to extend the life of the Pandemic Response Accountability Committee, also known as the PRAC.

Before I close, I want to thank the 20 Inspectors General who make up the PRAC for their work overseeing pandemic relief spending.

I also want to thank Senators Durbin, Peters, and Wyden for taking on this critical issue.

The Justice Department is committed to continuing our efforts to investigate and prosecute pandemic relief fraud and to recover the assets that have been stolen from American taxpayers.

Thanks, Gene, for giving me an opportunity to report on results so far.

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

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOHN MATAVA, 60, of Coventry, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for offenses related to his receipt of COVID-19 relief funds.

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).  In April 2020, Congress authorized more than $300 billion in additional PPP funding.  The PPP allowed qualifying small businesses and other organizations to receive unsecured loans at an interest rate of 1%.  PPP loan proceeds were to be used by businesses on payroll costs, interest on mortgages, rent and utilities. The PPP allowed the interest and principal to be forgiven if businesses spent the proceeds on these expenses within a certain period of time of receipt and used at least a certain percentage of the amount to be forgiven for payroll.

The PPP was overseen by the Small Business Administration, which has authority over all PPP loans.  Individual PPP loans, however, were issued by private approved lenders, such as Celtic Bank, which received and processed PPP applications and supporting documentation, and then made loans using the lenders’ own funds, which were guaranteed by the SBA.

According to court documents and statements made in court, in April 2020, Matava applied to Celtic Bank for a $100,000 PPP loan for J.M. Builders LLC.  The application submission included several false representations, including that J.M. Builders LLC had eight employees and an average monthly payroll of $40,000; that the monies would be used for payroll, lease, mortgage, interest, and utilities; and that the business owner was not subject to pending formal criminal charges.  At the time of the PPP loan application, there were no records of payroll or employees with the Connecticut Department of Labor for J.M. Builders LLC, and Matava was subject to criminal charges in two pending cases related to arrests in 2017 and 2018.

On April 22, 2020, Celtic Bank disbursed $100,000 to a bank account for J.M. Builders LLC on which Matava was the signatory.  The account was opened on April 21, 2020, and had a balance of $0 immediately prior to the loan funds being disbursed.  Between April 2020 and January 2021, Matava used the funds primarily for personal expenditures, including $3,498 to pay a dog breeder, $4,777 for payments to an RV superstore in Connecticut, and legal fees, including a $2,000 retainer, for four court cases in Rockville, Connecticut.

In January 2021, Matava sought $100,000 in additional PPP funds from Celtic Bank, and included with the application several additional false statements and fraudulent tax documents.  Celtic Bank denied the application.

Judge Dooley ordered Matava to pay restitution of $100,000.

Matava was arrested on January 7, 2023.  On January 2, 2024, he pleaded guilty to one count of wire fraud affecting a financial institution and one count of making an illegal monetary transaction.

Matava is released on a $60,000 bond, in home detention.  He is required to report to prison on May 13.

This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.  The case was prosecuted by Assistant U.S. Attorneys Christopher W. Schmeisser and Sean P. Mahard.

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)

Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Nicole Harding (38, Clermont) on an indictment charging her with one count of wire fraud. If convicted, Harding faces up to 20 years in federal prison. 

According to court records, between March 28 and April 14, 2021, Harding devised a scheme to defraud the Small Business Administration by submitting a false Paycheck Protection Program (PPP) loan application. PPP loans were one of the sources of economic relief provided for by the Coronavirus Aid, Relief and Economic Security (CARES) Act. Harding, however, provided false representations in her PPP application to secure the loan. The loan proceeds ($19,965) were later electronically transferred into her bank account.

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.

In May 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.  

This case was investigated by the United States Postal Service – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.

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

Tampa, FL – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Willie F. Murray, Jr. (55, West Park, FL) with six counts of wire fraud and three counts of aggravated identity theft. If convicted, Murray faces a maximum penalty of 20 years in federal prison for each wire fraud count followed by a consecutive two years of imprisonment for each aggravated identity theft count. The indictment also notifies Murray that the United States intends to forfeit $5,671,611.74 in U.S. currency, $1,578,925.56 from a bank account, and seven real properties located in Punta Gorda, Fort Lauderdale, Belle Glade, Hollywood, and South Bay, Florida, which are alleged to be traceable to proceeds of the offense.

According to the indictment, Murray was the registered agent and manager of Lab Tess, LLC, a Florida company that purportedly provided its customers COVID-19 testing services. In fact, Lab Tess provided no such services. Murray used Lab Tess to submit fraudulent claims for reimbursement to the Health Resources and Services Administration for COVID-19 testing services supposedly provided to uninsured individuals. To complete the illegal scheme, Murray used personal identifying information of individuals incarcerated by the Florida Department of Corrections, individuals falsely reported as having been tested at homeless shelters and electrical substations, and deceased individuals. Murray submitted more than 126,000 fraudulent claims and received reimbursement in the approximate amount of $5.6 million, which he used, in part, to purchase real properties in South Florida.

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.

In May 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.

This case was investigated by the United States Secret Service and the U.S. Department of Health and Human Services – Office of Inspector General. It will be prosecuted by Assistant United States Attorneys Greg Pizzo and Suzanne Nebesky.

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

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

SAVANNAH, GA:  An Atlanta man who provided phony documentation to receive small business pandemic relief payments has been sentenced to prison and ordered to repay the funding.

Kemar Clarke Jr., 28, of Atlanta, has been sentenced to eight months in prison and ordered to pay $41,665 in restitution, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Clarke to serve three years of supervised release upon completion of his prison term.

“When Congress approved relief funding for small businesses struggling during the COVID-19 pandemic, far too many people saw it as an opportunity to cash in at the expense of deserving business owners,” said U.S. Attorney Steinberg. “We are committed to holding accountable those who defraud American taxpayers.”

The Coronavirus Aid, Relief, and Economic Security (CARES) Act authorized the Small Business Administration to provide and/or guarantee loans to keep small businesses afloat during the pandemic’s financial challenges. One of the programs provided forgivable loans through the Paycheck Protection Program (PPP).

As described in court documents and testimony, agents from the Department of the Army Criminal Investigative Division at Fort Stewart determined that a paralegal specialist serving in the U.S. Army at Hunter Army Airfield had fraudulently obtained a PPP loan for a non-existent barber shop. The investigation also determined that the soldier, after receiving $20,832 in PPP funding, then paid an $8,000 kickback to Clarke for submitting the application on his behalf.

The investigation also determined that Clarke also had fraudulently obtained PPP funding for $20,832 – the maximum amount available to a sole proprietor. The restitution amount reflects the total PPP payouts.

“Unscrupulous actors engaged in PPP fraud have pilfered taxpayer dollars and undermined public trust in government programs.” said Steven Ausfeldt, Special Agent in Charge of Department of the Army Criminal Investigation Division’s Southeast Field Office. “We will continue to aggressively pursue fraudsters who try to defraud the U.S. Army and hold them accountable for exploiting government programs for their own profit.”

The case was investigated by the Department of the Army Criminal Investigative Division and prosecuted for the United States by Assistant U.S. Attorneys Matthew A. Josephson and David H. Estes.

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.

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

Tacoma – A 45-year-old Nigerian citizen who defrauded U.S. COVID relief programs from his home in Canada, was sentenced today in U.S. District Court in Tacoma to 42 months in prison for wire fraud and aggravated identity theft announced U.S. Attorney Tessa M. Gorman. Sakiru Olanrewaju Ambali, was arrested in February 2023, in Frankfurt, Germany, as he traveled back to Canada from Nigeria. Ambali was detained in Germany and was extradited to the U.S. last August. At today’s sentencing hearing U.S. District Judge Robert J. Bryan said, “It is clear that this involved a long series of serious fraudulent conduct.”  

“Mr. Ambali used the stolen identities of more than 630 American workers to fraudulently claim more than $1 million in pandemic unemployment benefits,” said U.S. Attorney Gorman. “The fraud created hardship for those who legitimately needed benefits and found someone had already filed a claim. This conduct, in the early days of COVID relief efforts, caused further disruption for thousands of people as Washington State stopped paying any claims for a time, while it tried to screen-out the fraud.”

According to records filed in the case, Ambali and codefendant Fatiu Ismaila Lawal, 45, used the stolen identities of thousands of workers to submit over 1,700 claims for pandemic unemployment benefits to over 25 different states, including Washington State. In total, the claims sought approximately $25 million, but the conspirators obtained approximately $2.4 million, primarily from pandemic unemployment benefits. As part of his plea agreement Ambali agreed to make restitution of $1,035,107.

The co-conspirators allegedly submitted claims for pandemic unemployment benefits to New York, Maryland, Michigan, Nevada, California, Washington and some 19 other states. Using 13 Google accounts, they filed some 900 claims. The co-conspirators also allegedly established four internet domain names that they then used for fraud – creating some 800 different email addresses that were used for fraud.

Additionally, between 2018 and 2021, Ambali used stolen personal information of eight U.S. citizens to try to claim tax refunds totaling more than $40,000. The IRS detected the fraud and did not pay the refunds.

Ambali also attempted to use the stolen American identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration (SBA). The SBA caught most of the fraud and paid only $2,500. 

Ambali and his co-conspirators had the proceeds of their fraud sent to cash cards or to “money mules” who transferred the funds according to instructions given by the co-conspirators. They also allegedly used stolen identities to open bank accounts and have the money deposited directly into those accounts for their use.

In her memo asking for a five-year sentence, Assistant United States Attorney Cindy Chang noted that Ambali’s web search history indicates he continued his fraudulent scheme for nearly three years. “Amabli first searched for (the Employment Security) website on or about May 5, 2020, two days before his first fraudulent submission to ESD, and he most recently visited the page on February 20, 2023, the day before he was arrested and last had access to his devices.   In other words, it is possible that Ambali—who had never even stepped foot in the United States much less worked in Washington State—was defrauding ESD until the day before his arrest last year.”

Judge Bryan imposed five years of supervised release to follow prison. One condition is that he not enter the U.S. without permission from the Department of Homeland Security.

Co-defendant Fatiu Ismaila Lawal was arrested in Canada in February 2023 and is pending extradition.

The National Unemployment Fraud Task Force provided a lead on this case to the investigative team in Western Washington. The case was investigated by the FBI with assistance from U.S. Postal Inspection Service (USPIS) and the Department of Labor Office of Inspector General (DOL-OIG). Also contributing to the investigation were Washington State Employment Security Division (ESD), the Internal Revenue Service Criminal Investigation (IRS-CI), and the Small Business Administration (SBA). 

The case is being prosecuted by Assistant United States Attorney Cindy Chang of the Western District of Washington. DOJ’s Office of International Affairs is assisting. 

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 https://www.justice.gov/coronavirus

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)

MIAMI – Two former City of Miami Police Department (MPD) employees pled guilty for their involvement in separate COVID-19 relief fraud cases.

U.S. v. Sheana Haslem, Case No. 24-20037-Cr-WILLIAMS/GOODMAN

On March 6, 2024, Sheana Haslem, 38, who was formerly a MPD Police Staffing Specialist, pled guilty to wire fraud in connection with her fraudulent applications for a Paycheck Protection Program (PPP) loan and an Economic Injury Disaster Loan (EIDL) advance, before U.S. District Judge Kathleen M. Williams. 

According to the facts admitted at the change of plea, on July 6, 2020, Haslem, who at the time was employed full-time by the MPD, submitted and with the assistance of an associate, caused to be submitted, to the U.S. Small Business Administration (SBA), a fraudulent EIDL application claiming to be an independent contractor and the 100% owner of a hair and nail salon business operating under her own name.  That EIDL application falsely certified that for the 12-month period prior to January 31, 2020, Haslem’s business had gross revenues of approximately $89,993 and 15 employees. As a result of this fraudulent application, Haslem obtained from the SBA a $10,000 EIDL advance.

Subsequently, on February 27, 2021, Haslem submitted, and with the assistance of the same associate, caused to be submitted, a fraudulent PPP loan application claiming to be an independent contractor operating a business under her own name. That application falsely represented the business’ average monthly payroll as being $8,333, and as part of the application process, Haslem submitted a fraudulent IRS Form 1040, Schedule C, for tax year 2019, claiming she had a security officer business that had a gross income of $102,874, no expenses, and a net profit of $102,874.  As a result of this fraudulent application, Haslem obtained a $20,832 PPP loan from an SBA approved lender.

Haslem is scheduled for sentencing on May 28, before Judge Williams in Miami, Florida, where she faces a maximum sentence of twenty years in prison.

U.S. v. Keandra Carter, Case No. 23-20475-Cr-WILLIAMS/GOODMAN

On February 13, 2024, former MPD Public Service Aide Keandra Carter, 35, pled guilty before Judge Williams to wire fraud in connection with her fraudulent application for a PPP loan. 

According to the facts admitted at the change of plea, on April 4, 2021, Carter, who was working as a full-time MPD Public Service Aide, submitted a false and fraudulent PPP loan application claiming to be a sole proprietor operating a business under her own name. That PPP loan application falsely and fraudulently represented that her sole proprietorship’s 2019 gross income was $1,100,000. In support of that application, Carter submitted a fraudulent IRS Form 1040, Schedule C, for tax year 2019, falsely stating that she was a “hair braider” and that her business had a gross income of $1,100,000. As a result of this false and fraudulent application, Carter obtained a $20,833 PPP loan from an SBA-approved PPP lender based in Pennsylvania.

Carter is scheduled for sentencing on May 2, before Judge Williams in Miami, where she faces a maximum sentence of up to 20 years in prison.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite, SBA Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, announced the guilty pleas.

The FBI’s Miami Area Corruption Task Force, which includes task force officers from MPD’s Internal Affairs Section, and the SBA-OIG investigated the cases. Assistant U.S. Attorney Edward N. Stamm is prosecuting the cases.

In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred.  EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.

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 September 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. For more information on the department’s response to the pandemic, please click https://www.justice.gov/coronavirus. 

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.  

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

Burlington, Vermont – The United States Attorney for the District of Vermont stated that Jennifer Stocker, 46, of New Haven, Vermont was sentenced on Friday, March 8, 2024, in United States District Court in Burlington for making false statements to a credit union on an application for a Paycheck Protection Program (PPP) loan, and for violating conditions of probation related to Stocker’s 2018 false statements conviction. Chief U.S. District Judge Geoffrey W. Crawford sentenced Stocker to a four-month term of imprisonment for the PPP loan offense, and a consecutive 30-day term of imprisonment for the violation of conditions of probation. After she is released from custody, Stocker will be subject to a three-year term of supervised release.

According to court records, in 2018, Stocker pleaded guilty in U.S. District Court in Burlington to making false statements in applications for benefits funded by federal agencies. For that 2018 offense, Stocker was sentenced to five years of probation and ordered to pay nearly $140,000 in restitution. Then, while on probation in May 2020, Stocker falsely stated on a PPP loan application for Twelve Acres LLC, an entity that she co-owned, that she had not been convicted of a felony in the past five years and was not on probation. Stocker submitted a second PPP loan application in February 2021 and again included a false statement about her criminal history. Both PPP loan applications were approved, and Stocker received approximately $86,000 in loan proceeds. Stocker submitted loan forgiveness applications for both PPP loans, and both forgiveness applications were granted for the full loan amounts plus interest.

In addition to committing this new offense while on probation, Stocker also violated her conditions of probation by failing to pay restitution, and by opening auto loans without obtaining approval from the probation officer.

Stocker is represented by Assistant Federal Public Defender Sara Puls. The prosecutor is Assistant U.S. Attorney Nicole Cate.

Addressing pandemic-related fraud is a priority of United States Attorney Nikolas P. Kerest and of the Department of Justice. For information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. 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.

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

MIAMI — On March 7, Andre Lorquet, 39, of Miami, Florida was sentenced to 71 months in federal prison for fraudulently obtaining COVID-19 relief loans and grants under the Paycheck Protection Program (PPP), the Economic Injury Disaster Relief Program (EIDL), and the Shuttered Venue Operator Grant (SVOG).

According to a court records, Lorquet submitted fraudulent applications, seeking more than $4.7 million in COVID-relief funds. In the COVID-relief applications, Lorquet falsified his revenue and payroll and submitted fraudulent IRS tax forms.

Lorquet received approximately $4.4 million in COVID-relief funds from the fraudulent scheme. Lorquet used the fraudulently obtained proceeds to purchase, among other things, two Tesla S models, a Lamborghini Urus, a Porsche Panamera GTS, a diamond Audemars Piguet watch, a rose gold and diamond pendant with his company’s logo, a half-kilogram gold chain with 70 carats of diamonds, and a 1-kilogram gold chain.

Lorquet pled guilty to money laundering.  He was sentenced by U.S. District Judge Michael K. Moore.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, made the announcement.

HSI investigated the case.  Assistant U.S. Attorney Jonathan Bailyn prosecuted it, and Assistant United States Attorney G. Raemy Charest-Turken handled asset forfeiture. 

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 no. 22-cr-20326.  

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