Category: USDJ National Center for Disaster Fraud

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

On September 26, 2024, 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. In the wake of Helene, 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 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.  United States Attorney for the Middle District of Louisiana, Ronald C. Gathe, Jr., serves as the Executive Director of the NCDF. 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.

The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by 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 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. 

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

COLUMBIA, S.C. — Jacob Liticker, 27, of Houston, Texas was sentenced to two years in federal prison after pleading guilty to conspiracy to commit wire fraud.

Liticker was charged in the District of South Carolina for his role in a national fraud scheme related to the Coronavirus Aid, Relief, and Economic Security Act’s Paycheck Protection Program (PPP). During the height of the COVID-19 pandemic, Congress authorized the PPP program to provide emergency economic relief to businesses suffering economic harm during and as a result of the pandemic.

According to evidence presented in court, Liticker led a scheme that submitted 86 fraudulent PPP loan applications for himself and others, many of whom resided in South Carolina. The scheme resulted in more than $870,000 in fraudulent PPP loans being issued to recipients who were not entitled to the pandemic relief funds. Liticker attempted to obtain more – he requested nearly $1.8 million in fraudulent PPP loans.

Liticker drafted PPP loan applications that falsely claimed businesses suffered financial harm as a result of the COVID-19 pandemic, he manufactured false and fraudulent documents submitted with the applications, he submitted the loan applications himself, he tracked the progress of the loans, and he helped co-conspirators obtain full forgiveness for the loans. He did so while having no criminal record and in college studying business.  In exchange for his services, Liticker received a portion of the fraudulently obtained funds.  During the pendency this case, Liticker also violated his bond, his bond was revoked, and he is now in the custody of the U.S. Marshals.

United States District Judge Mary Geiger Lewis sentenced Liticker to 24 months in federal prison, to be followed by three years of court-ordered supervision and ordered him to pay $807,990.09 in restitution to the Small Business Administration.  There is no parole in the federal system. 

“Every dollar defrauded from the PPP program represents money stolen from legitimate businesses who needed support during a difficult time in our country,” said Adair Ford Boroughs, U.S. Attorney for the District of South Carolina.  “This scheme took advantage of the public’s generosity by stealing almost a million dollars from taxpayers.  We thank our law enforcement partners for bringing accountability in this case.”

“Jacob Liticker’s sentencing should stand as a clear warning to those who seek to prey upon and defraud government programs,” said Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “DCIS will vigorously pursue perpetrators who employ Service Members in furtherance of their crimes, as well as Service Members who willingly participate in criminal behavior against the American people, the very people they swore an oath to protect.”

The case was investigated by the Airforce Office of Special Investigations, Department of Defense – Defense Criminal Investigative Service, with assistance from the U.S. Secret Service.  Assistant U.S. Attorneys Winston Marosek, who also serves as the Office’s Coronavirus Fraud Coordinator, and Elliott B. Daniels prosecuted 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.

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)

SAVANNAH, GA:  Southern District of Georgia U.S. Attorney Jill E. Steinberg reminds residents to be wary of disaster-related fraud in the wake of Hurricane Helene’s destructive path.

“Like moths to a flame, scam artists and profit-chasing individuals too often prey on vulnerable victims of natural disasters, such as those devastated by Hurricane Helene,” said U.S. Attorney Steinberg. “Vigilance is the first defense against fraudsters who would compound the misery of a natural disaster by stealing from those in desperate need of assistance in recovery, and our office stands ready to assist in holding accountable individuals who would take advantage of disaster victims.”

President Joe Biden has approved a major disaster declaration for Georgia, ordering federal aid to supplement state and local recovery efforts in the areas affected by Hurricane Helene. Of the 43 counties in the Southern District of Georgia, 30 are included in the disaster declaration.

Established in 2005 after Hurricane Katrina, the National Center for Disaster Fraud (NCDF) is a partnership of the U.S. Department of Justice and law enforcement and regulatory agencies that coordinates detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of fraud.

Of more than 200,000 disaster fraud complaints submitted to the NCDF, here are some examples of common complaints:

• Fake charities soliciting donations either using the names of well-known charities or appearing to be related to the disaster.
• Scammers impersonating government officials, offering disaster relief in exchange for personal information or money.
• Individuals posing as insurance provider representatives to collect payments or personal information.
• Fraudsters promising expedient home repairs requiring upfront or partial payment.
• Price-gouging for goods and services needed by victims of disaster.

Take these measures to protect yourself from disaster fraud:

• Donate only to well-known charities after verifying them through trusted sources.
• Do not respond to unsolicited requests for donations via email, phone, or text, and do not click on links in unsolicited messages.
• Do not assume that online or social media charity solicitations are legitimate.
• Use credit cards or checks for donations. Don’t send cash, or use wire transfers or mobile payment apps.
• Remember that government agencies and legitimate organizations will never ask for money or personal information via phone or email.
• Beware of contractors who knock on your door or make unsolicited contact, and/or make promises that sound too good to be true.
• Cautiously rely on recommendations from family and friends.
• Do not be forced into making repair decisions by a high-pressure contractor.

Protect yourself and your neighbors. To report disaster-related fraud, contact the NCDF at (866) 720-5721 or online at www.justice.gov/DisasterComplaintForm.

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

NEW ORLEANS – United States Attorney Duane A. Evans announced that TONYA DENISE BROWN (“BROWN”), age 48, of Tangipahoa Parish, a licensed practical nurse, has been charged on September 26, 2024 in a nine-count indictment.

The indictment charges BROWN with four counts of wire fraud, with each count alleging a different scheme.  In one alleged scheme, BROWN obtained money with false promises of assistance with state criminal prosecutions.  The indictment alleges that BROWN used a nursing job at the Tangipahoa Parish Jail to conduct the scheme.  The other three alleged schemes relate to disaster assistance.  Specifically, BROWN is accused of defrauding people by claiming that, in exchange for money, she would help them obtain disaster assistance benefits.  BROWN is also accused of defrauding the HUD-funded Restore Louisiana Homeowner Assistance Program, which provided grant funding to homeowners affected by disasters.  Additionally, BROWN is accused of defrauding FEMA’s rental assistance program that provided grants to help displaced disaster victims pay their rent.  BROWN is also charged with Aggravated Identity Theft for allegedly misusing a notary’s identity in the rental assistance scheme.

Further, BROWN is charged with two counts related to the sale of controlled substances.  Specifically, she is charged with Use of a Facility in Interstate Commerce in Aid of an Unlawful Activity, by using the internet to sell drugs, including oxycodone and dextroamphetamine-amphetamine.  She is also charged with Possession with Intent to Distribute a Controlled Substance by offering to sell oxycodone hydrochloride pills.

Finally, BROWN is charged with two counts regarding false statements.  One count charges BROWN with making a False Statement to the FBI.  The other count charges her for making a False Declaration Before the Court by allegedly lying to a judge.

The wire fraud counts alleging false promises of assistance with state criminal cases and false promises of assistance with disaster benefits are each punishable by up to 20 years’ imprisonment and three years’ supervised release.  The wire fraud counts related to the Restore program and the FEMA rental assistance program are each punishable by up to 30 years’ imprisonment and five years’ supervised release due to enhanced penalties for fraud involving disaster benefits.  The aggravated identity theft count is punishable by two years’ imprisonment and up to one year’s supervised release.  The False Statement count, the False Declaration Before the Court count, and the Use of a Facility in Interstate Commerce in Aid of an Unlawful Activity count are each punishable by up to five years’ imprisonment and three years’ supervised release.  A fine of up to $250,000 may be imposed for each count except the Possession with Intent to Distribute a Controlled Substance count, for which a fine of up to $1,000,000 may be imposed.  As to each charged count, BROWN also faces payment of a $100 mandatory special assessment fee.              

United States Attorney Evans reiterated that the indictment is merely a charge and that the defendant’s guilt must be proven beyond a reasonable doubt.

United States Attorney Evans thanked the FEMA Fraud Investigations & Internal Inspections Division, Fraud Prevention and Investigations Branch for its assistance in this matter.

This case was investigated by the Federal Bureau of Investigation and the Office of Inspector General – U.S. Department of Housing and Urban Development.  Assistant U.S.  Attorney Chandra Menon of the Public Integrity Unit is in charge of the prosecution.

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

MIAMI – The U.S. Attorney’s Office for the Southern District of Florida remains a leader in COVID-19 pandemic relief prosecutions, holding a range of actors accountable for these crimes. Over this summer alone, the district has charged 17 individuals with COVID-19 relief fraud cases, with scheme amounts totaling over $21 million.

In 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to enhance efforts to combat and prevent pandemic-related fraud. In 2022, the Southern District of Florida’s U.S. Attorney’s Office was selected to head one of three national COVID-19 Fraud Strike Force Teams. Together, with federal, state and local law enforcement partners, the U.S. Attorney’s Office targets fraudsters that took advantage of programs that offered assistance during the pandemic. Since the pandemic, more than 185 people have been charged in the Southern District of Florida for schemes involving more than around $220 million.

“These defendants have in common a willingness to exploit federal programs created to help people in a global pandemic for their own gain,” stated U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “The U.S. Attorney’s Office and our law enforcement partners will continue to uncover COVID-19 related financial fraud schemes and hold people accountable – regardless of their role in the community. We will not allow limited federal tax dollars, which were intended to provide a lifeline to small businesses as they struggled to stay afloat during the economically devastating pandemic lockdown, to be stolen to support criminal actors.”

“The Department of Justice remains committed to the prosecution of those who engaged in COVID-19 benefits program fraud and the return of recovered funds to the American taxpayers. I appreciate the dedication of the prosecutors and investigators who brought these people to justice and worked to protect the integrity of our federal benefits programs,” said Mandy Riedel, Director of COVID-19 Fraud Enforcement.

The following cases were charged this summer.

Cases Against Federal Employees

A number of federal employees and former federal employees have been charged with COVID loan schemes, including:

• U.S. v. Malaina Chapman, Case No. 24-CR-20321: Chapman, 37, of Hialeah, Fla., a former SBA employee, was indicted in July 2024. The indictment alleges that, while employed by the SBA, Chapman became involved in multiple schemes to defraud the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program, as well as to defraud local credit unions and local and state programs designed to assist those affected by the Covid-19 pandemic pay their rent. United States Postal Service Office of Inspector General (USPS OIG) and the U.S. Small Business Administration Office of Inspector General (SBA OIG) investigated this case.  This case is being handled by Assistant U.S. Attorney Daniel Bernstein.

“Fraudulent exploitation of SBA’s pandemic relief programs diverts critical resources from the small businesses that truly need them,” said Amaleka McCall-Brathwaite, Special Agent in Charge of the SBA OIG’s Eastern Region. “Our office is committed to protecting taxpayer funds and ensuring that individuals who attempt to defraud SBA programs are brought to justice. I want to thank the U.S. Attorney’s office and our law enforcement partners for their collaboration and dedication to justice.”

Unemployment Insurance Fraud

A number of defendants in Florida were charged with defrauding the California Employment Development Department of millions of dollars by making false claims for unemployment with the personally identifiable information of the victims of identity theft. These cases were investigated by the Federal Bureau of Investigation (FBI), U.S. Department of Labor Office of Inspector General (DOL OIG), SBA OIG, and Homeland Security Investigations (HSI).

This includes:

• U.S. v. Harold Eubanks and Myotha Francois, Case No. 24-CR-20335: handled by Assistant U.S. Attorney Roger Cruz.

• U.S. v. Kenneth Dikari Stevens, Jr. and Giovanni Kymani Paul Matthews, Case No. 24-CR-20293: handled by Assistant U.S. Attorneys Sean Cronin and Aimee Jimenez.

• U.S. v. Zachary Ramyard, Case No. 24-CR-20382: handled by Assistant U.S. Attorney Joesph Egozi.

“These cases represent the continued commitment of the FBI and many other federal agencies to identify and hold accountable those who engaged in COVID relief fraud,” said Jeffrey B. Veltri, Special Agent in Charge of the FBI’s Miami Field Office. “The intent of these programs was to provide a financial safety net to eligible businesses during a time of economic duress – not as a way for criminals to fund their lifestyles. While the relief programs have ended, our pursuit of the fraudsters has not. The amount of fraud we’ve seen is staggering. We continue to work hard every day to investigate these fraud schemes and protect the public from being swindled.”

“This funding was intended to mitigate the risk to Americans and businesses impacted by an unprecedented global pandemic but was stolen by individuals for their own personal gain” said Anthony Salisbury Special Agent in Charge Homeland Security Investigations in Miami “Criminally taking advantage of  programs designed to help our communities will not be tolerated. HSI and their partners will vigilantly pursue all those who seek to exploit these programs to ensure that Americans properly in need of this kind of support have access.”

COVID-19 Procurement Fraud

This office continues to investigate and pursue individuals who capitalized on the pandemic by illegally profiting on personal protective equipment (PPE), including:

• U.S. v. Nabil Nahlah, Case No. 24-CR-20434: Nahlah, 49, of Miami Beach, Fla., was charged with one count of fraud against the United States, arising from his efforts to sell millions of dollars of PPE to the Department of Veterans Affairs (VA) during the COVID-19 pandemic. According to allegations contained in the charging documents filed Sept. 25, Nahlah, through his company The Noble Attorney, made bids on various procurement requests from the VA for items like medical masks and examination gloves. Nahlah won the contracts by making false and fraudulent representations to the VA, namely by claiming that his firm was an authorized distributor or reseller of the PPE manufacturers and that he had the qualifying PPE in stock and available for immediate delivery. Nahlah furthered the scheme to defraud the VA by creating a fake web domain and email address for a PPE manufacturer and using it to submit a phony authorized distributor letter to the VA. Once awarded the lucrative contracts, Nahlah shipped non-conforming PPE to the VA, including counterfeit medical masks. This case was investigated by the VA Office of Inspector General’s (VA OIG) and the FDA Office of Criminal Investigations.  This case is being prosecuted by Assistant U.S. Attorney Jon Juenger.

• U.S. v. Rodrigo Mera, Case No. 24-CR-20148: In August 2024, Mera pled guilty to stealing gloves and other PPE from his employer during the pandemic. Mera admitted he sold the stolen PPE under false pretenses and profited over $1 million. This case was investigated by the United States Secret Service (USSS).  This case is being prosecuted by Assistant U.S. Attorney Daniel Bernstein.

“The charges included in today’s announcement highlight the VA Office of Inspector General’s dedication throughout the pandemic to protect veterans and VA employees from those who would exploit the opportunity for fraudulent gain,” said Special Agent in Charge David Spilker with the VA OIG Southeast Field Office. “The VA OIG remains steadfast in our commitment to work with our law enforcement partners to ensure the integrity of VA’s vital supply chain.”

“The FDA continues to monitor the marketplace to ensure that medical devices are safe and effective for American consumers,” said Special Agent in Charge Justin Fielder, FDA Office of Criminal Investigations’ Miami Field Office. “Today’s announcement should serve as a reminder that the FDA is continuing to collaborate with our fellow law enforcement partners to bring to justice those who place profits above the public health.”

Cases Against COVID-19 Loan Preparers

A number of loan preparers have been charged, including:

• U.S. v. Pete Andrew Cohen, Case No. 24-CR-60017: Cohen, 56 of Miramar, Fla., was the president of Taxez Taxez Taxez Incorporation in Miramar.   From June 2020 through June 2021, the defendant caused the filing of approximately $3 million in fraudulent PPP loan applications that falsely and fraudulently inflated the number of employees and payroll figures for the applicants. The defendant also arranged for PPP loan borrowers to create false and fraudulent payroll information using a payroll service. Cohen pled guilty and is scheduled to be sentenced on Oct. 17, before U.S. District Judge Rodney Smith. This case was investigated by Internal Revenue Service Criminal Investigation (IRS-CI) and Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). This case is being prosecuted by Senior Litigation Counsel Michael N. Berger.

• U.S. v. Marc Prince, Case No. 24-CR-20214: Prince, 41 of Miramar, reached out to various small business owners, directly or indirectly, to offer to obtain PPP loans. From June 2020 through April 2021, Prince caused the filing of approximately $3 million in fraudulent PPP loan applications that falsely and fraudulently inflated the number of employees and payroll figures for the applicants. Prince charged a fee, typically, of around 20 percent of the value of the PPP loan. Prince pled guilty and is scheduled to be sentenced on Oct. 17, before U.S. District Judge Darrin P. Gayles.  This case was investigated by IRS-CI, FDIC-OIG, and HSI.  This case is being prosecuted by Senior Litigation Counsel Michael N. Berger.

“These charges demonstrate the FDIC OIG’s commitment to working with our law enforcement partners to investigate allegations of fraud in COVID-19 relief programs and other financial crimes that threaten to undermine the safety and soundness of our Nation’s financial institutions,” said Special Agent in Charge Kyle A. Myles, of the FDIC OIG Atlanta Region.

“It has been four years after the enactment of a key pandemic-era law and IRS-CI still continues to investigate cases related to the CARES Act,” said Matthew D. Line, Special Agent in Charge of the IRS-CI Miami Field Office. “These cases cover a wide range of criminal activity, including tax, money laundering, fraudulently obtained loans, credits and payments meant for American workers, families, and small businesses. In the last year alone, IRS-CI has opened nearly 700 new COVID fraud investigations nationwide that collectively add up to $5 billion. If you committed fraud, know that we are working hard every single day to find you and hold you accountable.”

Theft of Employee Retention Credit Checks

This office has charged the theft of employee retention checks, for example:

• U.S.  v. Madelein Olivia, Case No. 24-CR-20323: Olivia, 52, of Miami, was indicted by a grand jury for stealing a $7 million Employee Retention Credit (ERC) check issued to a victim business where she was not employed.  ERC checks are refundable tax credits for certain eligible businesses and tax-exempt organizations that had employees and were affected by the COVID-19 pandemic. Treasury Inspector General for Tax Administration (TIGTA) investigated the case.  This case is being handled by Assistant U.S. Attorney Altanese Phenelus.  

An indictment, information, and complaint contain mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law.

For more information regarding the Department of Justice’s response to the pandemic visit https://www.justice.gov/coronavirus. 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 the case numbers referenced above.

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

Ocala, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Henry Troy Wade (47, Ocala) guilty of six counts of wire fraud. Wade faces a maximum penalty of 20 years in federal prison for each count. His sentencing hearing is scheduled for January 2025. A federal grand jury had returned an indictment against Wade on November 22, 2022. 

According to testimony and evidence presented at trial, the United States Small Business Administration (SBA) provided loans to small businesses during the COVID-19 pandemic. One source of funds came from Economic Injury Disaster Loans (EIDLs). Between April 5, 2020, and March 24, 2021, Wade applied for 11 EIDLs on behalf of 5 different businesses he claimed to own. Five of these applications were approved and Wade electronically received $524,400 through four loans and two grants.

Wade’s EIDL applications, however, contained multiple factual misrepresentations. Wade claimed he owned a restaurant, a farm, a child daycare, and two heating and air conditioning businesses. In actuality, Wade did not have the necessary licenses for any of these types of businesses. Even though he listed multiple employees on the EIDL applications, Wade never had paid any employment taxes nor had he registered the business names with the Internal Revenue Service or the Florida Department of Revenue. Wade also misrepresented his business income on the assorted applications by hundreds of thousands of dollars.  

This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Hannah Nowalk. 

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

Orlando, FL – United States Attorney Roger B. Handberg announces that a federal jury has found Angela Chew (60, Leesburg) guilty of conspiracy to bribe a public official and commit wire fraud, three counts of bribery of a public official, and six counts of wire fraud. Chew faces up to 5 years in federal prison on the conspiracy count, up to 15 years in federal prison on each of the bribery counts, and up to 20 years in federal prison on each of the wire fraud counts. Her sentencing hearing is scheduled for December 18, 2024.

According to evidence presented at trial, Chew conspired with three others to submit applications for COVID-19 Economic Injury Disaster Loans (EIDLs) containing false and fraudulent information in exchange for bribe payments. The evidence showed that Chew used her position as a loan specialist for the Small Business Administration (SBA) to internally access those loan applications that she and a co-conspirator had submitted on behalf of others. Chew then took actions on the applications within the SBA’s internal processing system that moved the loans towards approval. For example, Chew submitted a loan on behalf of a co-conspirator’s business that she knew was not active or operating at the time she submitted the loan. The loan was flagged as a duplicate by the SBA’s internal system, which stopped the application from progressing toward approval and funding. Chew then entered the SBA’s loan processing system, accessed the loan application, reactivated it, and manipulated the loan’s status multiple times in order to progress the application toward approval and funding in the amount of $150,000. In exchange, Chew received thousands of dollars in bribe payments from two of her co-conspirators. The evidence showed that Chew caused the funding of at least six EIDL applications, for a total loss of over $800,000.

“This conviction underscores our commitment to holding all wrongdoers accountable, including those in positions of public trust like this former SBA employee,” said Inspector General Hannibal “Mike” Ware. “These crimes are far from victimless, as they financially harm taxpayers and erode public trust in SBA programs. I want to extend my gratitude to the U.S. Attorney’s Office and our law enforcement partners for their unwavering commitment to safeguarding the integrity of federal relief programs and ensuring that the system works for those it was designed to help.”          

This case was investigated by the U.S. Small Business Administration, Office of Inspector General, the United States Secret Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Amanda Daniels and Diane Hu.

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

Tampa, FL – United States Attorney Roger B. Handberg announces the results achieved by the Middle District of Florida’s efforts to combat fraud related to the COVID-19 pandemic. Since March 2020, the United States Attorney’s Office (USAO-MDFL) has federally charged 109 individuals with fraud schemes designed to exploit state and federal programs implemented to alleviate the economic hardships caused by the COVID-19 pandemic. These efforts include complementary actions by the USAO-MDFL’s Criminal, Civil, Asset Recovery, Appellate Divisions, in cooperation with federal, state, and local law enforcement agencies.

“The Middle District of Florida United States Attorney’s Office, in cooperation with our federal, state, and local law enforcement partners, is committed to holding accountable those people who schemed to steal or otherwise obtain through misconduct benefits intended for Americans coping with the impacts of the COVID-19 pandemic,” said U.S. Attorney Roger Handberg.

With respect to criminal enforcement, the USAO-MDFL and federal, state, and local law enforcement agencies combined resources in March 2020 to form the Middle District of Florida COVID-19 Fraud Task Force with the purpose of identifying, investigating, and federally prosecuting fraud related to the ongoing COVID-19 pandemic. Since its inception, the Task Force has prosecuted 109 defendants for fraud schemes designed to exploit federal programs including the Paycheck Protection Program (“PPP”), Economic Injury Disaster Loans (“EIDL”), Unemployment Insurance (“UI”), the Main Street Lending Program (“MSLP”), the Emergency Rental Assistance Program (“ERAP”), as well as government Healthcare programs such as Medicare. Collectively, these defendants sought to defraud the United States of over $96 million. Of the 109 charged defendants, 74 have already been found guilty while prosecution remains pending against 35 defendants.

The Middle District of Florida COVID-19 Fraud Task Force continues to aggressively investigate and prosecute individuals that took advantage of COVID-19 programs. On September 20, 2024, for example, a federal grand jury convicted Angela Chew (60, Leesburg) of conspiracy to bribe a public official and commit wire fraud, three counts of bribery of a public official, and six counts of wire fraud. Chew faces up to 5 years in federal prison on the conspiracy count, up to 15 years in federal prison on each of the bribery counts, and up to 20 years in federal prison on each of the wire fraud counts. Her sentencing hearing is scheduled for December 18, 2024.

According to evidence presented at trial, Chew conspired with three others to submit applications for COVID-19 EIDLs containing false and fraudulent information in exchange for bribe payments. The evidence showed Chew used her position as a loan specialist for the Small Business Administration (SBA) to internally access those loan applications that she and a co-conspirator had submitted on behalf of others. Chew then took actions on the applications within the SBA’s internal processing system that moved the loans towards approval. For example, Chew submitted a loan on behalf of a co-conspirator’s business that she knew was not active or operating at the time she submitted the loan. The loan was flagged as a duplicate by the SBA’s internal system, which stopped the application from progressing toward approval and funding. Chew then entered the SBA’s loan processing system, accessed the loan application, reactivated it, and manipulated the loan’s status multiple times to progress the application toward approval and funding in the amount of $150,000. In exchange, Chew received thousands of dollars in bribe payments from two of her co-conspirators. The evidence showed that Chew caused the funding of at least six EIDL applications, for a total loss of over $800,000.

In July 2024, a federal grand jury returned a superseding indictment charging Jared Dean Eakes (33, Jacksonville) with five counts of wire fraud and three counts of bank fraud. According to the superseding indictment, Eakes participated in a scheme to defraud investors and fraudulently secured approximately $4,752,270 in PPP loans. Eakes caused the submission of four PPP loan applications—including applications for two of the entities involved in the scheme to defraud investors—which contained false and fraudulent supporting documentation and statements regarding the entities’ employees and payroll. Once Eakes obtained the PPP loans, he did not use the funds for qualifying expenses as required by the program. Instead, he used the funds to engage in options trading or withdrew the funds in cash.

In addition to criminal prosecutions, the MDFL-USAO continues to investigate and pursue civil redress against individuals and entities who fraudulently obtained PPP funds. For example, in September 2024, Miles Partnership, LLC (“Miles”), a travel and tourism consulting company headquartered in Sarasota, Florida, agreed to a civil settlement of $2,281,950 to resolve allegations that Miles improperly obtained and received forgiveness for a second draw PPP loan. According to the information contained in the qui tam complaint, Miles was required to file a registration statement under FARA (Foreign Agents Registration Act) due to its work with various foreign tourism boards. The United States investigated these allegations with the cooperation of Miles. The civil settlement will conclude the lawsuit.

Further, the USAO-MDFL’s Asset Recovery Division and federal seizing agencies have completed the forfeiture of more than $20 million of EIDL, UI, and PPP funds that were fraudulently obtained, depriving the fraudsters of their ill-gotten gains and recovering the proceeds for the victims. More than $18 million in additional pandemic fraud proceeds have been seized and are pending civil or criminal forfeiture.

The U.S. Attorney General has 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. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Through the PPP, the federal government authorized over $600 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. The EIDL program provides economic relief to small businesses that are currently experiencing a temporary loss of revenue. The MSLP provided support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. UI programs provided unemployment benefits to eligible workers who became unemployed through no fault of their own.

The criminal cases charged by the Middle District of Florida COVID-19 Fraud Task Force have been investigated by the Small Business Administration—Office of Inspector General, the Small Business Administration, the Federal Bureau of Investigation, the U.S. Secret Service, Internal Revenue Service—Criminal Investigation, the Department of Labor—Office of Inspector General, the U.S. Postal Service, the Federal Housing Finance Agency, the Federal Deposit Insurance Corporation—Office of Inspector General, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Special Inspector General for Pandemic Recovery, Federal Reserve Board—Office of Inspector General, Department of Health and Human Services—Office of Inspector General, Department of Veterans Affairs – Office of Inspector General, U.S. Agency for International Development, the Metropolitan Bureau of Investigation, the Tampa Police Department, the Orlando Police Department, the Jacksonville Sheriff’s Office, the Manatee County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Sarasota County Sheriff’s Office, the Winter Park Police Department, the Osceola County Sheriff’s Office, the Seminole County Sheriff’s Office, the Orange County Sheriff’s Office, and the Pasco County Sheriff’s Office. The cases are being prosecuted by Assistant United States Attorneys throughout the Middle District of Florida.       

The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (“NCDF”) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.

 

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

Tampa, FL – Valley National Bank (VNB), a national bank and member of the Federal Reserve System, has agreed to pay $216,784.50 to resolve its civil liability under the False Claims Act for its self-disclosed role in the administration of two loans to a bank customer made under the Coronavirus Aid, Relief and Economic Security Act (CARES), the Payroll Protection Program (PPP) and Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act).

Congress created the PPP in March 2020 as part of the CARES Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses. The PPP was administered by the U.S. Small Business Administration (SBA).

This settlement resolves VNB’s civil liability related to a bank customer who had applied for two PPP loans with VNB. VNB, through a bank relationship manager, assisted the customer in the impermissible use of a portion of the PPP loan proceeds from its first PPP loan to repay an outstanding loan to a third party. After learning of this conduct, VNB conducted an independent investigation and review of those issues and provided the United States with a detailed and thorough written self-disclosure. VNB cooperated fully with the government’s investigation of the conduct, disclosing relevant documents, facts, and information gathered during its investigation. Although PPP lending has ended, VNB took steps to remediate and improve the issues with its PPP lending policies and practices, including requiring PPP borrowers to open a deposit account to undergo depositor screening, retaining an accounting firm to serve as a PPP loan help desk, and utilizing a company to interface with the SBA E-Tran platform.

“The United States Attorney’s Office is committed to investigating and holding responsible those who failed to follow the rules of the PPP program,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to seek civil redress and, where appropriate, federally prosecute those individuals and entities that engage in improper uses of PPP loan proceeds.”

SBA’s General Counsel Therese Meers stated, “The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office, other federal law enforcement agencies, as well as financial institutions or private individuals who uncover borrower misconduct to recover the lending program’s damages.”

The resolution obtained in this case was the result of a coordinated effort by the United States Attorney’s Office for the Middle District of Florida and the Small Business Administration. The matter was handled by Assistant U.S. Attorney Kelley Howard-Allen, with assistance from the Small Business Administration – Office of General Counsel. 

The claims resolved by the settlement are allegations only and there has been no determination or admission of liability by VNB.

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.

Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also 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)

Tampa, FL – United States Attorney Roger B. Handberg announces that Willie F. Murray, Jr. (55, West Park) today pleaded guilty to wire fraud and aggravated identity theft. Murray faces a maximum penalty of 20 years in federal prison for the wire fraud offense and a consecutive two years’ imprisonment for the aggravated identity theft offense. Murray has also agreed 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, which are traceable to proceeds of the offense.

According to the plea agreement, Murray was the registered agent and manager of Lab Tess, LLC, a Florida company that purportedly provided its customers with 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 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 $5,671,611.74, which he used, in part, to purchase real properties in South Florida.

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 is being 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.