The Paycheck Protection Program (PPP) was implemented as a program to help small business owners affected by the Coronavirus pandemic. It assisted them by providing up to 8 weeks of payroll including benefits, and helped to hire back employees who may have been let go. PPP funds were also intended to be used for interest for mortgages, rent, and utilities of the business. PPP Loan funds were part of The CARES (Coronavirus Aid, Relief, and Economic Security) Act, implemented by the Small Business Association, where $659 billion was designated for the program.
However, some people have taken advantage of this resource and have committed acts of fraud, known as Covid Loan Fraud, PPP Loan Fraud, and Disaster Relief Fraud in order to obtain funds intended for the salvation of small businesses affected by Covid-19.
Recently, Jao Mendes, 60, of Brockton, was sentenced in Boston on April 9, 2024 for a scheme of falsifying applications to procure Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) funds. In December 2023, he plead guilty to one count of wire fraud. He was sentenced to 27 months in prison and ordered to pay restitution in the amount of $1,542,759 and the forfeiture of assets totaling $1,751,694.
Starting in June 2020, Mendes began submitting fraudulent PPP and EIDL applications on behalf of several fraudulent businesses. He created false numbers of employees and fraudulently forged the average number of payroll expenses. Additionally Mendes submitted false tax documentation for these purposes. Using his identity and two of his relatives, he received over $1.5 million in PPP and EIDL loans, he purchased cryptocurrency assets. This resulted in the recovery of $1.545 million in cryptocurrency and more than $206,000 in U.S. currency, which will be criminally forfeited.
If you are being charged with wire fraud in relation to PPP Loan Fraud Charges or EIDL Loan Fraud Charges through the CARES act, you should act now and find a PPP Loan Fraud Lawyer to assist you in fighting this charge which can result in jail time and significant fines.
Not only is Wire fraud is considered to be a very consequential white collar crime, but Wire fraud can be carried out by using the Internet, phone lines, fax lines, or other forms of communication. If you are charged with wire fraud, this does not mean you are immediately assumed to be guilty. However, once you have been arrested the federal authorities have already been building a case against you, here at Dhar Law LLP, our experienced team will do everything in our power to protect you and build a strong case in your defense. Contact a member of our team today for more information (617) 880-6155
