Man Charged In Largest Coronavirus Stimulus Check Fraud Yet, You Won't Believe What He Did
A Texas man now faces federal charges after he reportedly created over 500 fake employees to apply for more than $5.5 million in COVID-19 stimulus loan. The indictment that was unsealed Tuesdays shows that the man used a random name generator to create the names he used to apply for the forgivable loans.
Washington Time reported:
The monetary amount is the largest of any coronavirus stimulus fraud case brought so far by federal prosecutors.
Samuel Yates, 32, of Maud, Texas, is charged with wire fraud, bank fraud, making false statements to a financial institution and false statements to the Small Business Administration (SBA).
Prosecutors said Mr. Yates asked two banks for millions of dollars in forgivable loans guaranteed by the SBA under the Coronavirus Aid Relief and Economic Security (CARES) Act.
Mr. Yates told the first bank he needed $5 million to cover the costs of more than 400 employees with an average monthly payroll of $2 million, the Justice Department said. In the second application, Mr. Yates obtained a $500,000 loan by telling the bank he had more than 100 employees, according to prosecutors."
Mr. Yates is the 4th persona arrested for trying to defraud the coronavirus relief funds and prosecutors hope that his arrest will deter others from trying to commit the same crime.
Earlier this month two businessmen were charged in the District of Rhode Island with allegedly filing bank loan applications fraudulently seeking more than a half-million dollars in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
David A. Staveley, aka Kurt D. Sanborn, 52, of Andover, Massachusetts, and David Butziger, 51, of Warwick, Rhode Island, are charged with conspiring to seek forgivable loans guaranteed by the SBA, claiming to have dozens of employees earning wages at four different business entities when, in fact, there were no employees working for any of the businesses, according to the justice department.
Staveley and Butziger are charged by way of a federal criminal complaint with conspiracy to make false statements to influence the SBA and conspiracy to commit bank fraud. Additionally, Staveley is charged with aggravated identity theft. Butziger is charged with bank fraud.