Just two weeks ago, we saw the first of what promises to be many P3 loan fraud charges when a pair of decent and upstanding Rhode Island men were arrested by the Department of Justice. . David A. Staveley, aka Kurt D. Sanborn, 52, of Andover, MA, and David Butziger, 51, of Warwick, RI, have been charged with conspiracy to apply for forgivable loans guaranteed by Small Business Administration, claiming to have dozens of employees. earning a salary in four different business entities when in fact no employee worked for any of the companies.
“Tens of millions of Americans have lost their jobs and have seen their lives plunged into chaos due to the coronavirus pandemic. It is unacceptable that anyone attempting to steal a program intended to help hardworking Americans continue to be paid so that they can feed their families and pay part of their bills, ”said US Attorney Aaron L. Weisman for the Rhode Island district after the pair were billed. “Attorney General Barr has called on all U.S. lawyers to prioritize the investigation and prosecution of coronavirus and COVID-19 crimes, and that’s exactly what we’re doing. “
Welp, we have a new opportunist to add to the list, ladies and gentlemen. My fault, alleged opportunistic.
Last week, the Justice Department indicted Maurice Fayne, aka Arkansas Mo, 37, who appears on VH-1 Love and hip-hop: Atlanta. Admittedly, I am very late on my Love and hip-hop lore, the last time i watched the show was a long time ago people were still trying to find out if joseline was really a man. Anything. According to the DoJ complaint, Mr. Mo or others submitted a PPP application on April 15, 2020, as the sole owner of a Georgian company called Flame Trucking. In his application, he claimed to have 107 employees and an average monthly payroll of $ 1,490,200. He applied for a loan of $ 3,725,500 and certified that the loan proceeds would be used to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments,” as specified in the Paycheck Protection Program rule ”.
The bank he spoke to went ahead and threw him $ 2,045,800. Within days, according to the DoJ, Fayne would have used more than $ 1.5 million of the proceeds from the PPP loan to buy $ 85,000 in jewelry, including a Rolex presidential watch, a diamond bracelet, a 5 diamond ring, 73 carats for himself, and to pay $ 40,000 for child support. .
When officers arrived at his home on May 11, they seized $ 80,000 in cash, including $ 9,400 Fayne had in his pockets and jewelry he had purchased with P3 funds. On top of that, they found a 2019 Rolls-Royce Wraith still with the temporary labels hanging in its driveway.
Here is the fun part. Not funny haha, obviously. In a statement to Washington postFayne’s lawyer Tanya Miller said the government had not made it clear enough that PPP loans were for payroll and other legitimate business expenses and not, I don’t know, for jewelry and luxury cars.
“We will provide the appropriate response in the appropriate forum once all of the information has been provided to us,” Miller said in the statement. “There has been considerable confusion among small business owners about the PPP guidelines – particularly around whether and how business owners are allowed to pay themselves a salary or owner’s raffle. . This ambiguity and confusion for business owners must be resolved immediately as the PPP program is still in its infancy. “
MSRP for a 2019 Rolls-Royce Wraith starts at $ 320,500.
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