Category: USDJ National Center for Disaster Fraud

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

Defendant Name Sentencing Information Charges Loan Amount Requested

Sirdell L. McCullough

Age 26, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Roderguiz Henry

Age 27, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,260 / PPP

Johntrell Crutchfield

Age 24, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Deanthony D. Johnson

Age 24, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,575 / PPP

$8,000 / EIDL

Deaaundrakous Latrea Hagger

Age 25, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,833 / PPP

$20,833 / PPP

Nico J.  Stewart

Age 36, Shreveport

• 5 years of probation

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$4,000 / EIDL

$1,000 / EIDL

Timothy D.  Vasher

Age 22, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Destane Glass

Age 23, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Xavien R. Beasley

Age 24, Bossier City

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$10,000 / EIDL

Quinterrius D. Brown

Age 23, Shreveport

• 24 months in prison

• Conspiracy to Commit Wire Fraud

$30,800/ EIDL

Not funded

Toronco Rashard Loston

Age 26, Shreveport

• 24 months in prison

• Conspiracy to Commit Wire Fraud

$20,832 / PPP

Not funded

$201,100 / EIDL

Not funded

Dewonnie Brown

Age 55, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

$20,800 / PPP

$20,833 / PPP

$20,833 / PPP

Joshua Dominique

Age 25, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Kardarius Jenkins

Age 23, Shreveport

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

• Conspiracy to Commit Wire Fraud

$20,832 / PPP

Jasmine Glass

Age 23, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$8,332 / PPP

Tramaine Taylor

Age 28, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Antoria Johnson

Age 26, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,458 / PPP

$20,458 / PPP

Joketa Baulkman

Age 41, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$19,005 / PPP

$19,005 / PPP

Tyneal Johnson

Age 37, Coushatta

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,833 / PPP

$20,800 / PPP

Cierra Fleming

Age 23, Shreveport

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

• Conspiracy to Commit Wire Fraud

$20,207 / PPP

Tramarciea Ruffins

Age 31, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,415 / PPP

Olivia Thomas

Age 28, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,832 / PPP

Samarrian Kingston

Age 26, Shreveport

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,272 / PPP

Lakeah Gipson

Age 28, Bossier City

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

• Conspiracy to Commit Wire Fraud
• Wire Fraud

$20,058 / PPP

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The DSS Miami Field Office and BSO investigated the case.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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.