Since the COVID 19 pandemic, the federal courts have been bustling with cases involving Paycheck Protection Program (PPP) loan fraud. If you have been accused of PPP Loan Fraud, or you believe you are being investigated for PPP loan fraud, you should take such accusations extremely seriously. Federal prosecutors are aggressively pursuing PPP Loan Fraud cases through the courts system and investigating and prosecuting any suspected fraud through a COVID-19 Fraud Task Force, established in 2021. The public have also been encouraged to submit tips to the Department of Justice’s National Center for Disaster Fraud hotline.
Two individuals were sentenced in federal court in Boston for their involvement in a multi-state scheme to defraud the PPP system of millions of dollars. Adiana Pierre, 39, of Lookout Mountain, Tennessee, and Gardy Alexandre, 51, of West Palm Beach, Florida, were sentenced in June 2024 for their roles in a fraudulent scheme involving the submission of dozens of false PPP loan applications. Pierre received a sentence of 17 months in prison followed by three years of supervised release, while Alexandre was sentenced to 15 months in prison and three years of supervised release. A third defendant, Wallace Ford, 38, of Buford, Georgia, is awaiting sentencing.
The trio pleaded guilty to conspiracy to commit wire fraud and conspiracy to engage in unlawful monetary transactions. They conspired to submit fraudulent PPP applications on behalf of various businesses and non-profit organizations across the United States, including in Massachusetts, and received kickbacks from the borrowers for securing the loans. Between May and August 2020, the group managed to obtain approximately $7 million in PPP funds. Wallace Ford submitted applications for his businesses and on behalf of Pierre, Alexandre, and other borrowers. Pierre and Alexandre helped identify potential applicants and provided their information to Ford, who then fabricated employee numbers and payroll expenses on the applications. Ford also submitted false wage and tax forms to support the fraudulent claims.
Engaging in unlawful monetary transactions is a crime that is more commonly known as money laundering. Money laundering and wire fraud are both crimes that are taken extremely seriously by the US federal government. Federal conspiracy statutes make it easy for prosecutors to convict anyone with involvement in a crime of federal conspiracy charges, leading to sentences of up to 5 years in prison, and often a hefty fine.
If you find yourself accused of PPP loan fraud, the consequences can be severe. Given the complexity and gravity of such cases, having an experienced PPP Loan defense attorney by your side is essential. At Dhar Law, LLP, we have decades of experience defending serious white collar crime charges in federal courts. If you have been accused of PPP Loan Fraud, or you believe the federal government are investigating you, there is no time to waste. Prosecutors will aggressively build a case against you, by attempting to prove that any association with alleged criminal activity was knowing and intentional. Please contact our experienced PPP Loan Defense attorneys to learn more about how we can defend you against serious charges related to pandemic loan assistance at (617) 880-6155 to learn more.
