ASAIC Secret Service Roy Dotson is among those prosecuting fraud to alleviate COVID
Approximately $ 100 billion in federal funding to alleviate the pandemic has been stolen by fraudsters who have squandered money on a lavish lifestyle, and the government is now struggling with the daunting task of finding and prosecuting the perpetrators.
In total, the US government threw away about $ 6 trillion in emergencies COVID-19 funds to help prevent an economic catastrophe, and the fire hose with money attracted a flock of impatient fraudsters.
The suspects include a former NFL player and reality TV star, and in a number of lawsuits filed so far, prosecutors say the proceeds of the fraud were spent on everything from Lamborghinis and Rolex watches to contract killings.
Federal prosecutors, teams of investigators from many chief inspectorates and even the Secret Service are now pursuing a complex network of investigations to bring fraudsters to justice.
In December, the Secret Service appointed Assistant Special Agent Roy Dotson of the Jacksonville Field Office as the National Pandemic Fraud Recovery Coordinator, tasked with coordinating efforts in a number of ongoing fraud investigations into aid claims.
In one of the most scandalous cases, 29-year-old David T. Hines from Miami received $ 4 million in PPP funds and used the money to buy a Lamborghini Huracan for $ 318,000.
Hines pleaded guilty in February 2021 to one count of physical fraud and was sentenced to more than six years in federal prison. The court also ordered him to take away Lamborghini
“Currently, the Secret Service has more than 900 active criminal investigations into fraud specific to the pandemic relief funds,” Dotson said in a statement at the time.
“This is a combination of the benefits of the pandemic and all other compensation programs. “Every state is affected, some more than others,” he said.
“The Secret Service is trying to recover everything we can, including funds stolen from both federal and state programs.”
Many of the scams involved fake claims for funds from the Wage Protection Program (PPP) designed to support small businesses, but scams involving unemployment insurance were also widespread, investigators said.
The massive fraud took place in three separate rounds of funding during the Trump and Biden administrations, and the current White House is quick to describe it as a problem that President Joe Biden “inherited” from his predecessor.
“There is no doubt that the massive fraud that erupted in the 2020 pandemic, especially for small business loans and unemployment insurance, is the biggest oversight challenge inherited from the Biden administration,” said Jean Sperling, chief executive. Biden Coordinator for Cost Stimulation. said the Washington Post.
Sperling emphasized that the administration was “taking significant steps to strengthen anti-fraud control”.
However, some of the stolen money may now be difficult or even impossible to recover due to the large scale of the fraud believed to have taken place.
Last month, the U.S. Government’s Office of Accountability estimated that the small business administration had already forgiven about $ 550 billion in PPP loans, complicating efforts to recover stolen funds.
The monitoring agency also said the government had paid creditors $ 49 billion to forgive PPP loans, despite the fact that they were “still being reviewed by the SBA to deal with signals and flags indicating eligibility concerns.”
Dozens of cases of alleged fraud have become shocking headlines in the last two years.
Jasmine Martinez, 33, pictured, claims she paid a killer to kill TSA officer La’Shonte Jones
The 24-year-old TSA agent Jones was shot dead on May 3, 2021 in front of his daughter
Earlier this month, a Florida woman was accused of using a $ 15,000 PPP loan to hire a killer to kill a 24-year-old woman she allegedly stole from her boyfriend.
Jasmine Martinez, 33, has been charged with first-degree murder for allegedly plotting to assassinate Le’Shonte Jones.
Jones, a TSA agent at Miami International Airport, was fatally shot in front of his three-year-old daughter in front of their home in the Coral Bay Cove apartments in the Miami suburb of Homestead on May 3, 2021.
Police say Martinez took out a $ 15,000 loan to alleviate the pandemic, which she claims is for her working beauty salon for a woman, and then used it to hire Javon Carter, 29, to kill Jones. It is unclear whether Martinez ever owned a salon.
David T. Hines, 29, was sentenced to six years in prison for PPP fraud
Carter and Romiel Robinson, 35, who reportedly linked Martinez to the killer, were also charged with murder but denied involvement. All three could be sentenced to death if convicted.
In one of the most scandalous cases, 29-year-old David T. Hines from Miami received $ 4 million in support of Covid-19 after applying for PPP loans for small businesses.
Hines used these funds in part to buy a luxury Lamborghini Huracan for $ 318,000.
He claims that he has hundreds of employees in four companies – Unified Relocation Solutions, Promaster Movers, Cash-in Holdings LLC and We pack Moving LLC – and that he needs $ 13 million to continue paying them.
In fact, prosecutors say he had 12 employees and that his business was about $ 200,000 a month.
Hines pleaded guilty in February 2021 to one count of physical fraud and was sentenced to more than six years in federal prison. The court also ordered him to take away Lamborghini.
Former New York Jets successor Joshua Bellamy has been charged with fraud and conspiracy to participate in a $ 1.2 million PPP scheme
Bellamy, 32, pleaded guilty last June to conspiracy to commit fraud and was sentenced to 37 months in federal prison
In another shocking case, former New York Jets successor Joshua Bellamy was accused of fraud and conspiracy to participate in a $ 1.2 million PPP scheme.
After receiving the loan for his company Drip Entertainment LLC, Bellamy admitted that he used the funds for personal belongings, such as jewelry and a stay at the Seminole Hard Rock Hotel and Casino.
Bellamy, 32, pleaded guilty last June to conspiracy to commit fraud and was sentenced to 37 months in federal prison.
Also, reality TV star Maurice Fain, who starred in Love & Hip Hop: Atlanta, was sentenced to more than 17 years in federal prison on charges stemming from a Ponzi scheme and PPP fraud.
Acting U.S. Attorney General Kurt R. Erskine said last year that Fein “plans to use the PPP program as a cover for his long-running Ponzi scheme.”
Reality TV star Maurice Fain, who starred in Love & Hip Hop: Atlanta, has been sentenced to more than 17 years in federal prison on charges stemming from a Ponzi scheme and PPP fraud
Pictured: File photo from 2018 of a vintage gold luxury watch for daily meetings. Faine has spent more than $ 1.5 million on jewelry, investigators said
In April 2020, Fayne applied for a $ 3.7 million PPP loan from United Community Bank, falsely claiming that its truck business had 107 employees and an average monthly salary of $ 1,490,200.
Instead of using the money to run his business, Faine spent money on Rolls-Royce leases, custom jewelry, overdue child support, restitution due to previous fraud and other personal expenses, prosecutors said.
In another case, a couple from Michigan was arrested for filing fake $ 2.5 million COVID unemployment claims after posting photos of their designer clothes, cars and jewelry online.
Johnny Richardson, 25, and Mikahia Taylor, 27, have pleaded guilty and are due to stand trial on April 13. They face up to 20 years in prison.
Pictures of the unemployed Richardson and Taylor online show the couple enjoying a luxurious lifestyle by buying brand new $ 130,000 Mercedes-Benz cars, vacations and jewelry.
Johnny Richardson, 25, and Mikahia Taylor, 27, (above) have pleaded guilty to fraud and are due to stand trial on April 13. They face up to 20 years in prison
Pictures of unemployed Richardson, pictured, and Taylor online show the couple enjoying a luxurious lifestyle by buying brand new $ 130,000 Mercedes-Benz cars, vacations and jewelry.
U.S. Postal Service Inspector Erin Leipold said: “In general, Richardson’s account routinely depicts him in designer clothes and personalized jewelry and watches inlaid with diamonds, drives luxury vehicles and owns large sums of money.”
Sharing a photo of the car Richardson bought for Taylor on Instagram, he wrote: “BABY, YOU DESERVE EVERYTHING, I GOT THE BIG HOUSE THAT WANTED THE CAR AND THE JEWELRY.
By the way, I LOVE YOU VERY MUCH AND I DIDN’T FINISH THE NEXT WEEK, I RECEIVED SOMETHING BETTER.
The couple is alleged to have filed fraudulent unemployment claims online, alone or through others.
Then they are friends in the state Michigan Unemployment Insurance Agency on claims; which uses its state role to release fraudulent payments, authorities said.
When a friend’s home was searched, police found $ 238,000 in cash and Louis Vuitton belongings.
Her mobile phone allegedly contained messages from Taylor and messages about Richardson, who officials said was “not paid and has no other legitimate source of income.”