Texarkana, Texas 2021-01-14 08:30:27 –
Texarkana, Texas – Men and women in Liberty County, Texas, receive hundreds of fraudulent financial injury accident loans (EIDL) to the Small Business Administration (SBA) under Coronavirus Assistance, Relief, and Economic Security (CARES). ) I was charged with submitting an application. Actions in the United States District Court for the East of Texas today announced US lawyer Stephen J. Cox.
Clifton Pape, 45, and Sally Jung, 58, of Cleveland, Texas, run a COVID bailout fraud program known as My Buddy Loan, earning over $ 775,000 in fraudulent revenue and at least $ 1.3 million. It is said to have caused a loss. America. Pape and Jung have been charged with large-scale fraud against the United States in a federal criminal accusation alleging violations of Title 18, Section 1031 of the United States Code.
“When SMEs, the driving force behind East Texas’s economy, needed the most urgent support from the Small and Medium Business Administration, these individuals used the general public to run out of resources available to SMEs. , Backed by their own pockets with fraudulent interests, “said Stephen J. Cox, federal attorney for the Eastern District of Texas. “We advise the general public and members of the banking community to be vigilant and vigilant when the next round of COVID bailouts begins. It is justice to stop and prosecute this type of fraud. It’s a ministry priority. “
“The person responsible for fraud against the SBA will be identified and brought to justice for personal gain,” said Sharon Johnson, SBAOIG’s Central Area Special Agent. “SBA’s Economic Injury and Disaster Loan Program provides upfront grants and loans to qualified SMEs to mitigate the negative effects of a pandemic. Dedicated to the judiciary of the Department of Justice and law enforcement partners. I would like to thank you. “
“These accusations represent the result of misusing the COVID-19 pandemic by stealing the EIDL program, thereby stealing money for legitimate businesses in need,” Tyler said. William Mack, a US Secret Service resident agent in charge of the representative office, said. “The success of this investigation was a direct result of the investigation measures taken by the Secret Service and its law enforcement partners. The Secret Service blames those who attempt to abuse the CARES law program and holds US citizens themselves. We will continue to seek justice from all those who seek to abuse it for their unlawful interests. “
Pape and Jung operated under the name My Buddy Loans, according to a court document filed today in the US District Court for Texarkana. My Buddy Loans has promised to obtain personal identification from a third party and apply for a $ 10,000 agricultural grant to the federal government in exchange for $ 1082.50. Instead, Pape and Jung actually submitted an EIDL application to the SBA that contained incorrect information. For example, in June and July 2020, Pape and Jung submitted 222 EIDL applications. All of these are said to be for companies with exactly 10 employees. This is the minimum number of employees required to obtain an EIDL Advance of up to $ 10,000. From these 222 applications, the SBA has issued 130 EIDL Advances ranging from $ 10,000 to a total of $ 1.3 million.
Pape and Jung used Square’s credit and debit card processing services to charge a third party a fee of $ 1082.50. Pape and Jung have completed 716 successful claims and received at least $ 775,000 from a third party. Pape and Jung then transferred the proceeds of the fraudulent program to their bank account. At one point, Pape used his fraudulent proceeds to pay a traffic ticket. On another occasion, Pape and Jung spent more than $ 3,600 from a fraud plan to pay for their stay at La Cantera Resort in San Antonio, Texas. Photos of the stay show Pape and Jung celebrating sparkling wine and other drinks. Following the foreclosure warrant, the agent seized $ 505,535.04 of fraudulent income remaining in the account.
The CARES Act, a federal law enacted on March 29, 2020, provides urgent financial assistance to millions of Americans suffering from the economic consequences of the COVID-19 pandemic. Is aimed at. One source of relief provided by the CARES Act was authorization to meet financial obligations and operating costs that would have been met in the absence of a disaster or EID L Advances and low interest loans to SMEs. .. Under the EIDL Advance program, loan applicants were eligible for up to $ 10,000 upfront if the applicant had 10 or more employees. This was allowed. The prepayment amount is based on the number of employees reported by the company. Applicants can receive up to $ 1000 per employee, up to $ 10,000. The SBA required EIDL Advance applicants to provide specific information such as employee numbers, revenues, and commodity costs at the time of application. EIDL applicants can apply through a third-party processor. Third-party processors were allowed to charge a reasonable fee for the service.
If you have information about an attempted fraud allegation related to COVID-19, please call the Ministry of Justice’s National Disaster Fraud Center Hotline 866-720-5721 or the NCDF Web Complaint Form (https: //www.justice). ) Can be reported. gov / Disaster-fraud / ncdf-disaster-complaint-form.
The federal criminal accusation is just an accusation. Defendants are presumed innocent unless proved guilty.
Under federal law, Pape and Jung will be fined $ 5,000,000 in a sentence for up to 10 years in federal prison. The statutory judgments stipulated by Parliament are provided here for informational purposes, as the judgments are decided by the courts based on the advisory judgment guidelines and other statutory factors.
The case is being investigated by the US Secret Service and the SBA Inspector General. The proceedings have been indicted by Assistant US Attorney Jonathan R. Hornock.
Texas man and woman behind My Buddy Loans charged with filing hundreds of fraudulent applications for COVID relief Source link Texas man and woman behind My Buddy Loans charged with filing hundreds of fraudulent applications for COVID relief