2 Florida men guilty of running $35M COVID-19 fraud scheme
Also: Two Florida Men Plead Guilty to $35 Million COVID-19 Relief Fraud Scheme (U.S. Department of Justice)
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Source: Associated Press
2 Florida men guilty of running $35M COVID-19 fraud scheme
December 16, 2021
AKRON, Ohio (AP) — Two South Florida men have pleaded guilty in Ohio to leading a nationwide scheme to fraudulently obtain more than $35 million in COVID-19 relief loans.
James Stote, 55, of Hollywood, Florida, and Phillip Augustin, 52, of Coral Springs, Florida, pleaded guilty Tuesday in Akron, Ohio, federal court to conspiracy to commit wire fraud, according to court records. They each face up to 20 years in prison.
“While many businesses in our communities relied upon relief funds to keep their doors open and employees paid, these defendants profited off a scheme that stole millions of taxpayer dollars intended for struggling businesses and spent it lavishly on themselves,” First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio said in a statement.
According to court documents, Stote and Augustin led a group that fraudulently obtained Paycheck Protection Program loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief and Economic Security Act. Authoriteis say they initially obtained a fraudulent loan for Augustin’s company, Clear Vision Music Group LLC, using falsified documents. After that, they immediately began working to obtain larger PPP loans for themselves and their associates, the documents added.
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Read more: https://apnews.com/article/coronavirus-pandemic-sports-health-business-conspiracy-70103c6cc24a2760679564e480945265
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Source: U.S. Department of Justice
FOR IMMEDIATE RELEASE
Thursday, December 16, 2021
Two Florida Men Plead Guilty to $35 Million COVID-19 Relief Fraud Scheme
Recording Artist Also Sentenced in Scheme
Two Florida men pleaded guilty this week in the Northern District of Ohio for leading a nationwide scheme to fraudulently obtain over $35 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, James R. Stote, 55, of Hollywood, and Phillip J. Augustin, 52, of Coral Springs, conspired to obtain millions of dollars in fraudulent PPP loans. Augustin and Stote obtained a fraudulent PPP loan for Augustin’s company, Clear Vision Music Group LLC, using falsified documents. After submitting that application, Stote and Augustin immediately began working to obtain larger PPP loans for themselves and their associates. Stote and Augustin recruited additional PPP loan applicants and prepared and submitted fraudulent loan applications for them in exchange for a share of the loan proceeds. The applications they submitted for all of the loans in the scheme relied on fake payroll numbers, falsified IRS forms and phony bank statements. They submitted or facilitated at least 79 fraudulent loan applications worth at least $35 million and planned to submit more.
“These convictions, and the numerous convictions of others involved in this wide-ranging conspiracy, demonstrate that people will be held accountable for defrauding the PPP Program,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Fraud against PPP programs directly harms taxpayers and undermine public trust in essential government support during the pandemic. We will continue to combat fraud and ensure that COVID-19 relief goes to those who deserve it.”
“While many businesses in our communities relied upon relief funds to keep their doors open and employees paid, these defendants profited off a scheme that stole millions of taxpayer dollars intended for struggling businesses and spent it lavishly on themselves,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “Theft of government funds will not be tolerated, and prosecuting PPP fraud remains a priority for law enforcement.”
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Read more: https://www.justice.gov/opa/pr/two-florida-men-plead-guilty-35-million-covid-19-relief-fraud-scheme