Category: USDJ National Center for Disaster Fraud

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

Orlando, Florida –United States Attorney Roger B. Handberg announces that Robert William Burns, III (44, Rockledge) has pleaded guilty to COVID-19-related wire fraud. Burns faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, in 2021, Burns applied for three Paycheck Protection Plan (PPP) loans to support two of his businesses – RB3 Ventures LLC and The Social Wizards. In all three applications, Burns made false statements to obtain the loans. In one instance, he inflated his company’s income to obtain a larger payout and supported the application with false or fictitious tax documents. In total, Burns fraudulently obtained $57,186 in PPP funds. Burns then spent all the funds on non-business purposes.

As part of his plea agreement, Burns has agreed to forfeit $57,186 and make full restitution to the U.S. Small Business Administration. 

This case was investigated by the United States Secret Service and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Richard Varadan.

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

MIAMI – On Oct. 23, a federal jury in Miami convicted Tracy Wade, 51 and Carolyn Wade, 49, both former deputy sheriffs with the Broward Sheriff’s Office (BSO), of conspiracy to commit wire fraud, wire fraud, conspiracy to make false statements to the Small Business Administration (SBA), and making false statements to the SBA, all in connection with obtaining Paycheck Protection Program (PPP) loans based on false information.

According to evidence presented at trial, in 2021, Tracy and Carolyn Wade applied for and received PPP loans for phony sole proprietor businesses using falsified Internal Revenue Service (IRS) tax forms submitted with each application.  The Wades also applied for and received forgiveness of their fraudulently obtained PPP loans based upon additional falsehoods, which included falsely representing to the SBA that they had spent their loan proceeds on payroll.  During the commission of the offenses, Tracy and Carolyn Wade were employed as deputy sheriffs in BSO’s Department of Detention.

A sentencing date has not yet been set by the court.  The maximum sentence for conspiracy to commit wire fraud is 20 years in prison; the maximum sentence for each wire fraud conviction is 20 years in prison; the maximum sentence for conspiracy to make false statements to the SBA is 5 years in prison; the maximum sentence for each conviction of making false statements to the SBA is 2 years in prison.  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; Special Agent in Charge Jeffrey B. Veltri, FBI, Miami Field Office; Special Agent in Charge Brian Tucker, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-OIG); and BSO Sheriff Gregory Tony made the announcement.

FBI Miami, FRB-OIG, and BSO investigated this case.  Assistant U.S. Attorneys David A. Snider and Adam Love prosecuted the case.  Assistant U.S. Attorney Darren Grove 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.

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-60173.

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

 Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Marina Tusca Brooks Stewart (61, Groveland) on an indictment charging her with one count of wire fraud related to COVID relief. If convicted, Brooks Stewart faces up to 20 years in federal prison. In addition, she faces a forfeiture order of $10,000, which represents the alleged proceeds she obtained through this offense. 

According to court documents, during the COVID pandemic, the United States Small Business Administration (SBA) offered Targeted Economic Injury Disaster Loan (EIDL) Advances that did not need to be repaid. The advances were for small businesses that were in low-income communities and received a reduction in revenue of more than 30% during an eight-week period. Between June 28 and 30, 2020, Brooks Stewart devised a scheme to defraud the SBA by electronically applying for an EIDL advance and providing false representations in her application. Afterwards, she fraudulently received a $10,000 EIDL advance.

An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty. 

This case is being 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)

ALEXANDRIA, Va. –The founder of a Manassas business has agreed to pay $1,000,000 to settle allegations that he falsified payroll amounts to obtain inflated loans on behalf of True Information Assurance, LLC, through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP).

The PPP offered loans to eligible small businesses for economic relief during the COVID-19 pandemic.  PPP borrowers were required to provide their income and supporting documents to qualify for the loan amount. 

Steven T. Covey obtained two PPP loans for True Information Assurance, of which he was owner and President, by submitting loan applications with false payroll figures to SBA-authorized lenders.  Based on these fraudulent applications, True Information Assurance received two inflated loans.  After Covey sold True Information Assurance in 2021, he retained all proceeds from both PPP loans.

The settlement began with a lawsuit filed under the whistleblower provision of the False Claims Act, United States ex rel. Salman v. Bull Run Capital Investments, Inc., et al. The whistleblower will receive a share of this settlement.

The matter was investigated by Assistant U.S. Attorney Gina Kim and Auditor Peter Melaragni for the Eastern District of Virginia.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information from the civil lawsuit can be accessed on PACER by searching for No. 1:21-cv-852.

The civil claims settled are allegations only; there has been no determination of civil liability.

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

ABINGDON, Va. – Six defendants indicted in May 2024 for conspiring to defraud the United States, to commit program fraud, and to commit mail fraud in connection to a scheme involving the filing of fraudulent claims for pandemic unemployment benefits, pled guilty yesterday in federal court.

Josef Ludwig Brown, 43, of Tazewell, Virginia; Crystal Samantha Shaw, 39, of Raven, Virginia; Jonathan Scott Webb, 40, of Raven, Virginia; Christopher Kirk Webb, 39, of Raven, Virginia; and Stephanie Amber Barton, 30, of Cedar Bluff, Virginia, all pled guilty to one count of conspiring to defraud the United States in connection with emergency benefits, while Haleigh McKenzie Wolfe, 30, of Cedar Bluff, Virginia, entered a guilty plea to defrauding the United States in connection with emergency benefits.

According to court documents, between March 2020 and September 2021, these co-defendants conspired with others to file fraudulent claims and recertifications for pandemic unemployment benefits via the Virginia Employment Commission website while they were incarcerated in jails throughout the Western District of Virginia. Due to their incarceration status, these defendants were ineligible for pandemic unemployment benefits. Brown, one of the lead defendants in this investigation, admitted he solicited other co-conspirators while he was incarcerated to obtain their personal identifying information to provide to Shaw, another lead defendant, for her use in filing fraudulent claims and recertifications for unemployment benefits. In total, among the 17 defendants charged in this conspiracy, the Virginia Employment Commission paid out over $340,000 in fraudulent pandemic relief benefits.

Earlier this year, Brian Edward Addair, Clinton Michael Altizer, Cara Camille Bailey, Jeramy Blake Farmer, Joseph Frederick Hass, Daniel Wayne Horton, Jessica Dawn Lester, and Terrance Brooks Vilacha pled guilty to related fraud charges.

United States Attorney Christopher R. Kavanaugh, Brian D. Miller, Special Inspector General for Pandemic Recovery, and Virginia Attorney General Jason Miyares made the announcement.

As part of the Pandemic Response Accountability Committee (PRAC) Task Force, this investigation was conducted by the Special Inspector General for Pandemic Recovery. The PRAC’s 20-member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending.

Agencies that assisted with this investigation include the Dickenson County Sheriff’s Office, the Southwest Virginia Regional Jail Authority, the Federal Bureau of Investigation, the United States Department of Labor, and the Virginia Employment Commission.

Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, and Assistant U.S. Attorney Danielle Stone are prosecuting the case for the United States.

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

SAN DIEGO – United States Attorney Tara McGrath issued a public safety alert today advising the public to be vigilant to hurricane relief fraud in the wake of powerful hurricanes causing devastation on the East Coast.

“During times of crisis, be vigilant, because not all who ask for help have good intentions,” McGrath said. “Be sure to protect yourself by verifying before you donate to ensure your generous support reaches those truly in need.”

Hurricane Milton is heading for Florida now, less than a week after Hurricane Helene made landfall in Florida’s Big Bend Region on Sept. 26 and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.

The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before making a donation to benefit victims of Hurricane Helene, individuals should adhere to certain guidelines, including:

• Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
• Do not be pressured into making contributions as reputable charities do not use such tactics.
• Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
• Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
• Beware of organizations with copy-cat names similar to, but not exactly the same as, those of reputable charities.
• Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
• Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
• Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.

The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.

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

            Montgomery, Alabama – Acting United States Attorney Kevin Davidson issued a public safety alert today advising the public to be vigilant to hurricane relief fraud attempts in the wake of Hurricane Helene and future storms.

            “Criminals will use any situation, including natural disasters, to profit from the kindness and generosity of others,” said Acting U.S. Attorney Davidson. “I encourage all Alabamians to be mindful as they consider participating in donation requests for disaster relief. Using the suggestions listed below will help ensure that donations reach their intended recipient and do not get diverted to those who seek only to enrich themselves.”

            On Sept. 26, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. Currently, Hurricane Milton is making its way across the Gulf of Mexico and will impact Florida’s west coast this week. As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.

            The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene or any other natural disaster. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before making a donation to benefit victims of a disaster, individuals should adhere to certain guidelines, including:

• Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
• Do not be pressured into making contributions as reputable charities do not use such tactics.
• Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
• Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various internet-based resources that may assist in confirming whether the organization is a valid charity.
• Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
• Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
• Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
• Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.

            The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.

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

ATLANTA – U.S. Attorney Ryan K. Buchanan advises the public to be cautious about hurricane relief fraud in the wake of Hurricane Helene.

“Natural disasters unfailingly prompt members of our communities to respond with an outpouring of compassion and support for impacted family members, neighbors, friends and strangers,” said U.S. Attorney Ryan K. Buchanan. “Unfortunately, these occurrences also attract scammers who capitalize on such calamities to exploit affected fellow citizens when they are most vulnerable.  By this public notice, we do not aim to deter you from offering assistance but caution you to do so with the awareness of how to detect and avoid common charity scams.”

On September 26, 2024, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation in that area and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. As we have seen in the wake of previous national disasters, fraudsters target victims of such storms along with citizens across the country who want to do what they can to assist individuals affected by these natural disasters. Unfortunately, criminals exploit these incidents for personal gain by sending fraudulent communications through email or via social media and by creating deceptive websites designed to solicit contributions.

The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, email, door-to-door collections, flyers, mailings, and other similar methods. Before donating to benefit victims of Hurricane Helene, individuals should follow these and other guidelines:

• Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
• Do not be pressured into making contributions as reputable charities do not use such tactics.
• Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
• Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
• Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
• Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
• Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in “.org” rather than “.com.”
• Be cautious of emails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.

The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

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

MIAMI – United States Attorney Markenzy Lapointe reminds the public to be vigilant of hurricane relief fraud in the wake of Hurricane Helene and other natural disasters.

“Throughout hurricane season and in the aftermath of Hurricane Helene, I urge the public to be wary of fraudsters looking to exploit victims of hurricanes and other natural disasters through identity theft schemes, solicitations for fake charities, or other types of fraud. Report suspected disaster fraud to the National Center for Disaster Fraud by calling (866) 720-5721 or by going online at www.justice.gov/DisasterComplaintForm,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida.

On Sept. 26, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.

The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before making a donation to benefit victims of Hurricane Helene, individuals should adhere to certain guidelines, including:

• Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.

• Do not be pressured into making contributions as reputable charities do not use such tactics.

• Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.

• Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.

• Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.

• Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.

• Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.

• Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.

The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.

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

United States Attorney Leigha Simonton issued a public safety alert today advising the public to be vigilant to hurricane relief fraud in the wake of Hurricane Helene.

“North Texans are some of the most generous people I know,” said U.S. Attorney Leigha Simonton, the Northern District of Texas’ chief federal law enforcement officer. “We’ve all been impacted by the devastating images of Helene’s aftermath and are looking for ways to help. The best way to ensure your donations make a difference is to route them through a legitimate charity. Please, be vigilant for scams. Unfortunately, some fraudsters will stop at nothing to make a quick buck – even if it means exploiting a natural disaster and preventing funds from reaching the actual victims who are in need.”  

On Sept. 26, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. 

As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. 

Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.

The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before making a donation to benefit victims of Hurricane Helene, individuals should adhere to certain guidelines, including:

• Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
• Do not be pressured into making contributions as reputable charities do not use such tactics.
• Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
• Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
• Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
• Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
• Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
• Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.

The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.