US Charges Texas Man with COVID-19 Loan Fraud

US Charges Texas Man with COVID-19 Loan Fraud

Samuel Yates, 32, of Maud, Texas, has been filled with crimes of wire scam. bank deception and false reports to a financial company. Although And the Small Business Administration in Texas behind supposedly trying more than 5 million dollars.

In Paycheck Protection Program credits by the Coronavirus Aid, Relief. And Economic Security (CARES) Act. Although According to a reporter statement by the Department of Justice on Tuesday.

According to government documents. Yates supposedly made two false PPP loan requests to two different donors.

In the report submitted to the first banker.

Yates ostensibly sought $5 million in PPP loan interests. By fraudulently declaring to have 400 workers. In addition, With an ordinary cyclical payroll of $2 million. In the second request, Yates declared to employ over 100 people.

And was capable to get a loan for over $500,000. With each letter, Yates resigned a list of purported employees. However That he got from a publicly available casual name generator on the internet. He also presented formed tax records with each application in addition.

Paycheck Protection Program

The Paycheck Protection Program is a member of the CARES Act. set in March. The PPP provides restricted small companies and other parties. Although To get loans with a low-interest price for two years. They need to be used to pay interest in payroll costs. discount on contracts, rent, and services. 

“Today’s commitment should work as a strong impediment. In addition, anyone thinking to exploit the COVID-19 pandemic. To improve themselves completed deception.” However Agent Ryan Spradlin of U.S. Immigration and Custom’s Homeland Security Investigations stated. “These people have no business for certain businesses. However Whose workers and their subdivisions are worrying. In addition, they are worrying financially through these unusual times.”

The Justice Department is supporting all U.S. financial companies. To promptly report all suspect applications or distrusted fraud in addition.  

More details on Fraud

The assaults against Yates are the latest addition. In the DOJ’s inquiry into PPP fraud cases.

Last week, Shashank Rai, 30, of Beaumont, Texas, was filled with line fraud. Bank fraud and false reports to a financial system. And to the Small Business Administration. After probably asking more than $10 million in PPP investments. According to a press statement by the Department of Justice.

The CARES Act, passed March 29. It is intended to give emergency financial help. To millions of American miniature companies hurting from the coronavirus pandemic. However, The program first approved up to $349 billion. In trivial loans within the PPP to small companies for job preservation. And some other expenses. Although, In April, Congress authorized over $300 billion in extra PPP funding.

The PPP allows qualifying small businesses to acquire loans. With manhood of two years. And an engagement rate of 1 percent. PPP loan returns must be used by companies on payroll costs. In addition, Share on leases, rent, and utilities. The industry and the principal can be pardoned. If businesses spend the profits on these charges within eight weeks of discharge. Although And use at shortest 75 percent of the exonerated amount for payroll.


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