U.S. authorities have arrested and charged a former Hollywood CEO in the latest in a series of attempted Paycheck Protection Program (PPP) fraud attempts the United States has put in place to help businesses cope with the coronavirus crisis.
William Sadleir has been charged with multiple fraud charges, including defrauding the US government for nearly US $ 2 million intended to help struggling businesses continue to pay their employees during the coronavirus pandemic.
According to US Department of Justice, despite Sadleir being fired from Aviron Pictures in 2019, he still managed to apply for the PPP program on behalf of the company and received a total of $ 1.7 million.
He quickly transferred the amount to his own bank account and used it to pay off credit card debts, car loans, and other expenses for his wife and wife.
“This film producer allegedly made a series of false statements to a bank and the Small Business Administration to illegally obtain taxpayer money which he then used to fund his nearly empty personal bank account,” said US Attorney Nick Hanna from the Central District of California.
“The Paycheque Protection Program was implemented to help small businesses stay afloat during the financial crisis, and we will act swiftly against those who abuse the program for their own gain,” he added. .
On the same day, Sadleir was also indicted by the United States Southern New York District Attorney’s Office with Rowing’s $ 14 million embezzlement and for his role in a nearly $ 30 million fraud scheme in which he allegedly “went so far as to impersonate an employee of the bogus New York company which he created to continue his illegal activity, ”according to FBI Deputy Director William F. Sweeney Jr.
Fraudsters and con artists have profited from the injection of $ 2.2 trillion into the US economy through the various CARES law programs and Sadleir is just the latest in a series of CEOs and bosses companies who have been sued for defrauding the PPP program and other COVID-19 Relief Funds.
“These funds were designed to be a lifeline for companies struggling to stay afloat during the current crisis,” said deputy director in charge, Paul Delacourt, of the FBI’s Los Angeles field office. “The FBI is committed to upholding the integrity of the PPP and will hold accountable those who cheat the system at the expense of US taxpayers.”
On the same day as Sadleir’s arrest, the DOJ ad the prosecution of a Washington state-based software engineer for filing fraudulent claims asking for $ 1 million in small business forgivable loans that were made available under the CARES Act (Coronavirus Aid, Relief, and Economic Security).
Earlier this week in Texas, another man attempted to defraud the government to get more than $ 5 million in taxpayer dollars, the DOJ said in another. declaration. The man had called for over 400 workers in need of P3 funds when in fact he had none.
Few days ago The Hindu, reported that another man from Texas had committed a similar scam, attempting to get $ 10 million by claiming a fictitious staff of 250 people and a payroll of $ 4 million.
According to AARPReality TV star Maurice Fayne got $ 2 million, thanks to a forgery of loan application in April, which he then allegedly spent on a Rolls-Royce, diamond-studded jewelry and child support for children.
ThreatPost, an outlet that covers cybersecurity, reported that a Nigerian cyber gang known as Scattered Canary has made millions of dollars through an organized campaign of fraudulent claims submissions.