man charged with $ 1.9 million COVID fraud | Takeover bid
A Nevada man was indicted on Wednesday for his alleged participation in a scheme to defraud several financial institutions by filing bank loan applications that fraudulently solicited more than $ 1.9 million in forgivable loans guaranteed by the Small Business Administration ( SBA) as part of the coronavirus aid. Relief and Economic Security Act (CARES).
Nicholas L. McQuaid, Acting Assistant Attorney General, Criminal Division, Department of Justice; Nicholas A. Trutanich, United States Attorney for the District of Nevada; Aaron C. Rouse, special agent in charge of the FBI field office in Las Vegas; and Weston King, Special Agent in charge of the West Region Office of the Inspector General (OIG) SBA office, made the announcement.
Jorge Abramovs, 40, of Las Vegas, has been charged in an indictment filed in the Nevada District with five counts of bank fraud, one count of misrepresenting a bank and five counts of money laundering. Abramovs was originally charged with bank fraud as part of a criminal complaint and was arrested on January 17, 2021. On January 22, 2021, US judge Cam Ferenbach ordered Abramovs to be detained pending trial.
Indictment alleges Abramovs secured nearly $ 2 million in Paycheck Protection Program (PPP) loans from seven different lenders, among others, by submitting multiple loan applications on behalf of three companies different while falsely claiming that many employees earn a salary. The indictment further alleges that Abramovs used the P3 funds for personal (rather than business) purposes, including the purchase of a Tesla, a Bentley, two condominiums and payment of his mortgage on real estate.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $ 349 billion in forgivable loans to small businesses for job maintenance and certain other expenses, through the PPP. In April 2020, Congress authorized more than $ 300 billion in additional P3 funding, and in December 2020, Congress authorized an additional $ 284 billion in additional funding.
The PPP allows small businesses and other eligible organizations to receive loans with a two-year term and an interest rate of 1%. The proceeds of the PPP loan are to be used by businesses on salary costs, mortgage interest, rent, and utilities. The PPP allows for the forgiveness of interest and principal if companies spend the proceeds of these expenses within a specified time frame and use at least a certain percentage of the loan for salary expenses.
A federal indictment is just an indictment. An accused is presumed innocent until proven guilty.
The FBI and the SBA-OIG investigated the case. Trial attorney Joseph McFarlane of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva of the U.S. Attorney’s Office for the Nevada District are continuing the case.
The Fraud Section leads the ministry’s prosecution of fraud schemes that exploit the PPP. In the nine months since the start of the PPP, Fraud Section lawyers have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section also seized over $ 60 million in cash proceeds from fraudulently obtained PPP funds, as well as numerous real estate and luxury items purchased with these products. For more information, visit: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https: //www.justice. gov / disaster-fraud / ncdf-disaster-complaint-form.