Brian Silber Law

Civil Forfeiture Attorney

Free Initial Consultation

(954) 462-3636

Show the Way

Texas Man Charged in $1.1 Million Wire Fraud Scheme Involving COVID-19 Relief Funds

By

tingey-injury-law-firm-veNb0DDegzE-unsplash-300x200The U.S. Department of Justice announced fraud charges against a Texas man accused of fraudulently obtaining $1.1 million in federal loans earmarked for small businesses affected by the coronavirus (COVID-19) pandemic.

Joshua Thomas Argires, 29, of Houston was charged with making false statements to a financial institution, engaging in unlawful monetary transactions, wire fraud, and bank fraud. It is unclear if he has acquired the services of an attorney.

According to the criminal complaint, Argires is accused of filing two fraudulent loan applications requesting more than $1.1 million in loans from the Small Business Administration (SBA) through its Paycheck Protection Program (PPP). The PPP is a federal program designed to provide small American businesses affected by the coronavirus pandemic with funding for job retention and other business-related expenses. Qualifying businesses can receive two-year loans with a one percent interest rate. Congress authorized over $650 billion in forgivable loans as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Argires allegedly submitted two PPP loan applications to federally insured banks for Texas Barbecue and Houston Landscaping. He claimed the two companies hired several workers and paid hundreds of thousands of dollars in payroll, the complaint states.

Records show that neither company has workers or payroll consistent with the amounts Argires allegedly claimed in the loan applications. Both loan requests were approved and funded, but the money was reportedly not used for payroll or other expenses authorized under the PPP.

The transactions involving the loan proceeds were flagged and that initiated a multi-agency investigation into the two companies. The investigation revealed that the funds for Texas Barbecue were sent to a private cryptocurrency account on Coinbase.com, while the funds for Houston Landscaping were slowly withdrawn via ATMs. Additionally, investigators from the U.S. Postal Service (USPS) discovered that Texas Barbecue did not exist until four days before Argires allegedly filed the PPP application.

When questioned by investigations about the transactions, Argires allegedly told them that the employees were paid through a Coinbase account but he “didn’t manage that aspect” of the business. Investigators learned that the Coinbase account was directly controlled by Argires and no workers were being paid through the service.

The investigation into Argires’ alleged fraud scheme was conducted by the SBA Office of the Inspector General (OIG), the Federal Housing Finance Agency OIG, and the USPS’s Houston Division. The press release announcing the charges against him noted that a federal criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in court.

Several states are cracking down on fraud related to the COVID-19 pandemic. In Florida, for example, the U.S. Attorney’s Office for South Florida announced the formation of a task force whose goal is to identify and prosecute fraud cases related to the coronavirus.

Anyone accused of committing COVID-19 fraud should immediately consult an experienced attorney who can review the evidence and decide the best course of action.

South Florida Fraud Defense Attorney

Accused of committing fraud related to COVID-19? Contact Brian Silber, P.A. for a free initial consultation with one of South Florida’s most experienced fraud defense attorneys.

Source: 7.14.20 Texas man charged with COVID-19 relief fraud.pdf

Feds Charge Michigan Contractor for Involvement in $2 Million Unemployment Fraud Scheme

By

katie-moum-o0kbc907i20-unsplash-300x200The U.S. Attorney’s Office for the Eastern District of Michigan has charged a Detroit woman for her alleged involvement in a $2 million dollar fraud scheme that sought to defraud the state and federal government out of funds allocated for coronavirus (COVID-19) unemployment assistance.

Brandi Hawkins, 39, is accused of violating federal laws on theft and wire fraud. Attorney information was not available.

According to the complaint, Hawkins was a contract employee of the Michigan Unemployment Insurance Agency (UIA). She was reportedly assigned to work as an insurance examiner, and her duties included reviewing, processing, and verifying filed unemployment claims.

As the state struggled with a historic wave of layoffs caused by COVID-19 and economic shutdown orders, Hawkins allegedly used her position in the agency to fraudulently release payment on hundreds of illegitimate unemployment claims. The complaint claims there is “probable cause” that she knowingly and fraudulently transferred, used, and processed federal funds. Starting from April 2020, she allegedly used her “insider access” to transfer the funds into multiple bank accounts via interstate wire transmissions.

Through her alleged actions, she caused the disbursement of over $2,000,000 of federal and state funds that were meant to provide unemployment assistance to Americans affected by the pandemic. She used the ill-gotten proceeds to buy “high-end handbags” and luxury goods, the complaint claims. Law enforcement seized more than $200,000 in cash while executing a search warrant at her residence, sources indicate.

After Hawkins was fired on June 17, investigators reviewed the audit logs for her user account and discovered that she continued to remotely access state systems and was “actively ‘discarding’ fraud-stops and releasing payment on hundreds of fraudulent claims until early July 2020,” according to the complaint.

“Brandi Hawkins is charged with exploiting the current pandemic to defraud the State of Michigan and United States for her own personal gain. These are serious allegations, and my office is committed to prosecuting any person who attempts to use the COVID-19 crisis to defraud the people of Michigan,” said U.S. Attorney Matthew Schneider in a press release.

In early June, the UIA was forced to freeze 340,000 active accounts that had already been approved for payment, delaying benefits for some legitimate claimants and requiring them to submit additional documentation to confirm their identity as a fraud investigation was conducted.

According to sources, as of July 6, the agency has resolved 285,000 of the 340,000 active unemployment insurance accounts it had initially frozen during the fraud probe, along with 160,000 of the 200,000 new claims it had held up pending identification verification.

Hawkins criminal complaint, which was filed July 17, is the first public development in a month-long investigation into suspected unemployment fraud in Michigan by both state and federal officials. The investigation into the fraud allegations is ongoing. Once the investigation is completed, federal prosecutors will decide whether to seek a criminal indictment against Hawkins.

Theft and wire fraud are serious offenses that carry severe penalties. Defending against these charges is not easy, which is why it is crucial for anyone accused of committing these crimes to consult an experienced defense attorney who has tried and tested ways of dealing with such cases.

South Florida Financial Crimes Defense Attorney

Are you accused of financial crimes in South Florida? Contact Brian Silber, P.A. to set up a free initial consultation and work with one of South Florida most experienced fraud defense attorneys.

Source: 7.16.20 State contractor charged in $2 million unemployment fraud scheme.pdf

Four Florida Men Face Fraud Charges for Selling Fake “Miracle” COVID-19 Cure

By

tai-s-captures-0I52FCHNjoU-unsplash-300x200A federal court in Miami has announced charges against four men from Bradenton, FL, who allegedly marketed a bleach solution as a cure for the novel coronavirus (COVID-19).

Mark Grenon, 62, and his sons, Jonathan Grenon, 34, Joseph Grenon, 32, and Jordan Grenon, 26, were each charged with conspiracy to defraud the United States, conspiracy to violate the Federal Food, Drug and Cosmetic Act, and criminal contempt. Attorney information wasn’t available.

According to the complaint, the Grenons are accused of manufacturing, promoting, and selling “Miracle Mineral Solution” (MMS). They claimed MMS could treat, prevent, and cure COVID-19, even though the Food and Drug Administration (FDA) has not approved the solution for treatment of COVID-19 or any disease.

When MMS is consumed orally, it creates chlorine dioxide—a powerful bleaching agent used in several industries, including water treatment facilities. The FDA has issued warnings strongly urging people not to buy or use MMS, explaining that consuming the solution is the same as drinking bleach and can cause serious side effects, such as severe vomiting, low blood pressure, and diarrhea. The agency has reportedly received reports of people being hospitalized and dying after drinking MMS.

Before they started selling the solution as a treatment for COVID-19, the Grenons allegedly marketed MMS as a miracle cure-all for dozens of serious diseases and disorders, including Alzheimer’s, cancer, autism, HIV/AIDS, and multiple sclerosis. They sold tens of thousands of bottles of the product in South Florida and across the nation through a quasi-religious entity called Genesis II Church of Health & Healing in order to avoid government regulation. Records indicate that the Grenons made $578,506 from transactions on their MMS websites from April 2019 to April 2020.

The affidavit claims Mark Grenon has repeatedly acknowledged that Genesis is not a religious organization, and that he founded the church to avoid being imprisoned for selling MMS. The church’s own website reportedly describes Genesis as a “non-religious church.”

The four men are additionally charged with criminal contempt because they violated a temporary restraining order filed against them and their church in April to stop the distribution of MMS. The complaint alleges that they willfully violated the order and sent letters in response threatening violence against the judge presiding over the case.

“We continue to protect the public from criminal conduct that takes advantage of the COVID-19 pandemic,” said U.S. Attorney Ariana Fajardo Orshan. “Not only is this MMS product toxic, but its distribution and use may prevent those who are sick from receiving the legitimate healthcare they need. A United States District Court already has ordered the defendants to stop distributing this product; we will not sit idly by as individuals purposefully violate court orders and put the public in danger.”

Several districts have announced the formation of COVID-19 fraud task forces to combat an increase in fraud related to the coronavirus pandemic. If you are accused of committing fraud, then you should immediately consult an experienced attorney who can review the evidence and protect your rights.

Miami Fraud Defense Attorney

Have you been accused of fraud in Miami? Contact Brian Silber, P.A. for a free initial consultation with one of Miami’s most experienced fraud defense attorneys.

Source: 7.8.20 father and sons charged with selling fake miracle cure for covid-19.pdf

Austin Man Arrested for Fraud Scheme Related to Government Assistance Funding for COVID-19

By

covid_19-300x166The U.S. Attorney’s Office for the Western District of Texas has announced the arrest of Michael George McQuarn of Austin for allegedly defrauding the U.S. Small Business Administration (SBA) Paycheck Protection Program of more than $2 million.

McQuarn was charged with wire fraud and making false statements to the SBA. The press did not name an attorney for him.

According to the criminal complaint, McQuarn is accused of submitting fraudulent applications and paperwork for two fake companies—Vantastic Vogages, LLC and Happy Days Movers, LLC—in order to receive SBA-backed PPP loans. McQuarn’s applications were approved and he purportedly received in excess of $2 million, which he were for legitimate business purposes. Records indicate he used the money for personal expenses, including purchasing a Rolls Royce and a Pavati Wake Boat.

“The Paycheck Protection Program was designed to help Americans struggling with financial hardship during the pandemic. Our office will be aggressive in targeting anyone who defrauds this critical program,” said U.S. Attorney John F. Bash.

The Paycheck Protection Program (PPP) is a federal assistance program that provides forgivable loads to small businesses for job retention and other business-related expenses. It was funded by a $600 billion emergency fund approved by Congress to help Americans suffering because of the economic hardship caused by the COVID-19 pandemic.

If convicted, McQuarn faces up to 20 years in prison for wire fraud and five years imprisonment for making false statements to the SBA. A complaint is only an accusation of criminal conduct. The accused is presumed innocent until proven guilty in a court of law.

“The defendant egregiously sought personal gain from a program intended to assist hardworking Americans in this challenging time,” said SBA OIG Central Region Special Agent in Charge Abram. “SBA OIG and its law enforcement partners will aggressively pursue allegations of wrongdoing to maintain the integrity of SBA’s programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”

Several states have announced plans to crack down on fraud related to the COVID-19 pandemic. In South Florida, U.S. Attorney Ariana Fajardo Orshan announced the formation of a task force made up of federal, state, and local law enforcement agencies, whose goal is to identify and prosecute fraud cases related to the pandemic.

South Florida Fraud Attorney

If you are involved in a fraud case, then you should hire an attorney. Contact Brian Silber, P.A. to set up a free initial consultation and work with one of South Florida’s most experienced fraud attorneys.

Source: 6.18.20 complaint filed against austin man for fraud scheme related to SBA paycheck protection program.pdf

Suburban Chicago Businessman Charged with Bank Fraud Involving Coronavirus Relief Fraud

By

lance-anderson-uevmkfCH98Q-unsplash-300x200The U.S. Attorney’s Office for the Northern District of Illinois announced charges last week against the CEO of two Evanston-based software companies for allegedly filing loan applications that fraudulently sought more than $400,000 from the federal Paycheck Protection Program (PPP).

Rahul Shah of Evanston was charged with bank fraud and making false statements to a financial institution. His initial appearance in court has not yet been scheduled. Attorney information wasn’t available.

Shah, 51, is the founder and CEO of Katalyst Technologies, Inc., and Boardshare LLC. The affidavit accuses him of submitting applications for a $441,138 PPP loan for his companies using significantly inflated payroll expenses. He allegedly submitted several false and fraudulent Internal Revenue Service (IRS) documents in support of the applications, including IRS Forms 1099-MISC that indicated his company had made payments to former employees who never received such payments. Shah also submitted what he claimed to be IRS Forms 941 representing his company’s payroll for 2019. A comparison of the documents he submitted and his company’s actual IRS filings revealed that his company significantly underreported its payroll expenses, the affidavit states.

PPP loans are guaranteed by the Small Business Administration (SBA) and funded by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was passed in March by Congress to provide emergency financial assistance to Americans struggling because of the economic turmoil caused by the COVID-19 pandemic. The CARES Act authorized up to $349 billion in forgivable loans to small businesses for payroll and other expenses through the PPP.

“The Paycheck Protection Program was designed as a lifeline for small businesses struggling to survive the COVID-19 pandemic,” said U.S. Attorney John R. Lausch. “My office is working closely with our law enforcement partners to hold accountable anyone who seeks to commit fraud in connection with this important program.”

On April 15, Shah purportedly submitted a PPP loan application for Katalyst to a bank in Texas, which stated he owned 42 percent of the company and that it has $845,285 in monthly payroll expenses. On April 30, Shah applied for another loan on behalf of Broadshare. It included multiple IRS forms that falsely claimed the company spent nearly $426,000 on payroll during the last quarter of 2019. However, actual IRS filings show the company reported payroll of less than $10,000 during that period, according to the affidavit. Investigators interviewed at least three people whose identities were falsely used to inflate Boardshare’s payroll. All three allegedly told investigators that they had worked for Katalyst before 2017 but had never worked for Boardshare.

When questioned by investigators, Shah reportedly acknowledged there were “errors” in his documentation. He told agents the documents he attached to his applications were erroneously given to him via email by workers in India. He was unable to provide investigators with proof of this claim.

Shah is the first Chicago-area resident to be charged with fraud related to the federal government’s COVID-19 relief efforts. If convicted, he could face a sentence ranging from probation to up to 60 years imprisonment.

South Florida Bank Fraud Attorney

Have you been accused of COVID-19 fraud? Contact Brian Silber, P.A. for a free initial consultation with one of South Florida’s most experienced bank fraud defense attorneys.

Source: 6.16.20 Suburban Chicago businessman charged with covid-relief fraud.pdf