MIAMI The U.S. Attorneys Office, together with federal and local law enforcement partners, announced today federal criminal charges as part of the Department of Justices ongoing initiative to prosecute fraud in connection with COVID-19 pandemic relief programs that offered assistance under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, including the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, as well as other crimes relating to the pandemic.
The charges were brought in 17 separate cases filed in the United States District Court for the Southern District of Florida. Collectively, the charges allege that 17 defendants participated in independent schemes to defraud the U.S. Small Business Administration (SBA) and participating lenders by fraudulently applying for loans and other relief through the PPP and EIDL program. These programs were designed to provide emergency financial assistance to the millions of Americans who were suffering from the economic effects caused by the COVID-19 pandemic. In total, the defendants allegedly received $495,171 in assistance unlawfully and used the proceeds to unjustly enrich themselves.
During todays initial hearings, before U.S. Magistrate Judge Patrick M. Hunt in Fort Lauderdale, prosecutors advised the Court that, during the period of the alleged schemes, each of the charged defendants was employed by the Broward Sheriffs Office (BSO). According to court documents, the U.S. Attorneys Office, in coordination with the Federal Bureau of Investigation (FBI), Office of Inspector General for the Board of the Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-OIG), and BSO, has been conducting a criminal investigation to determine whether any BSO employee violated federal law in connection with obtaining or attempting to obtain any form of relief authorized under the CARES Act, such as loans through the PPP and EIDL program.
Todays announcement is a reminder that the South Florida Strike Force remains fully committed to its mission - to combat and prevent COVID-19 related financial fraud, stated U.S. Attorney Markenzy Lapointe for the Southern District of Florida. The U.S. Attorneys Office and our law enforcement partners will continue to uncover the fraud schemes and hold anyone involved accountable regardless of an individuals role in the community. No matter the amount, we will not allow limited federal tax dollars, which were intended to provide a lifeline to small businesses as they struggled to stay afloat during the economically devastating pandemic lockdown, to be swindled by those who were employed in a position of trust and cast aside their duty to uphold and abide by the law. Our work is not done. This investigation is ongoing.
This investigation sends a message to individuals who knowingly and illicitly capitalized on the COVID-19 national emergency to enrich themselves through the CARES Act at the expense of struggling businesses and their employees, said Jeffrey B. Veltri, Special Agent in Charge, FBI Miami. While these programs have ended, our commitment to seeking out those who defrauded them has not.
Todays announcement demonstrates our unwavering commitment to holding accountable those who exploit and defraud financial institutions and the governments pandemic response for personal gain, no matter who they are, said Brian Tucker, Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. I want to commend and thank our agents, the Broward Sheriffs Office, the FBI, and the U.S. Attorneys Office for their efforts and their dedication to the pursuit of justice.
Department prosecutors around the country, including the COVID-19 Fraud Enforcement Strike Forces, will pursue these SBA pandemic fraud cases for the full 10 years of the extended statute of limitations, said Department of Justice Director of COVID-19 Fraud Enforcement Michael C. Galdo. Our partners are closely examining the pandemic data to identify fraud, including fraud by those holding a position of public trust. I would remind anyone who committed fraud, that in order to receive the full benefit from the Departments policy on self-disclosure, you must disclose before law enforcement knocks on your door.
Todays announcement regarding federal charges against more than a dozen Broward Sheriffs Office employees is the culmination of a BSO-initiated Office of Inspector General investigation. The investigation began in November 2021, after the BSO Office of Inspector General became aware of Paycheck Protection Program (PPP) fraud as an emerging trend within public service agencies. Shortly thereafter, the BSO Public Corruption Unit received a tip from a BSO employee that several employees may have committed PPP fraud.After being notified that BSO personnel may have participated in fraudulent schemes to defraud the federal government, I ordered an agency-wide investigation of all 5,600 employees from top to bottom.BSO Public Corruption Unit detectives determined more than 100 employees had submitted applications for the PPP loans. Only the employees who did not obtain the loans legally were subject to criminal investigation. To ensure a thorough and objective investigation was conducted, BSO sought out and partnered with the U.S. Attorneys Office, the Federal Reserve Board Office of Inspector General and the Federal Bureau of Investigation. For five years, Ive maintained an organization committed to transparency and accountability.I will continue to expect integrity and commitment to excellence from every BSO employee, Sheriff Gregory Tony said.
The following cases were announced today:
U.S. v. Stephanie Diane Smith, Case No. 23-mj-6477-PMH
On Oct. 11, Stephanie Diane Smith, 53, of Florida, was charged by criminal complaint with wire fraud.
According to the complaint affidavit, Smith applied for and received two PPP loans on behalf of herself as a sole proprietor doing business as Children 1st Basketball Training and Agape Smith Vending, respectively, based upon materially false information about the borrowers total gross business income for the year 2019, as well as a falsified Internal Revenue Service (IRS) tax form submitted with her applications. The complaint further alleges that, as part of the fraud scheme, Smith sought forgiveness of the PPP loans she received. According to the complaint, Smith has been employed by BSO since approximately 1996 and held the title of Deputy Sheriff in BSOs Department of Law Enforcement.
Assistant U.S. Attorney David Snider is prosecuting the case. Assistant U.S. Attorney Darren Grove is handling asset forfeiture.
U.S. v. Katrina Brown, Case No. 23-cr-60169-Altman
On Sept. 14, Katrina Brown, 46, of Florida, was charged by indictment with three counts of wire fraud.
According to the indictment, Brown applied for and received two PPP loans on behalf of herself as a sole proprietor, based upon materially false information about the borrowers total gross business income for the year 2019, as well as a falsified IRS tax form submitted with her applications. In addition, Brown submitted an application to the SBA for an EIDL that contained materially false information, including, among other things, the borrowers gross revenues, cost of goods sold, and number of employees.
Assistant U.S. Attorney Trevor Jones is prosecuting the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
U.S. v. Alexandra Acosta, Case No. 23-cr-60170-Scola
On Sept. 14, Alexandra Acosta, 37, of Florida, was charged by indictment with one count of wire fraud.
According to the indictment, Acosta applied for and received a PPP loan on behalf of herself as a sole proprietor, based upon materially false information about the borrowers total gross business income for the year 2019, as well as a falsified IRS tax form submitted with her application.
Assistant U.S. Attorney Trevor Jones is prosecuting the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
U.S. v. LaKeitha Victoria Lawhorn, Case No. 23-cr-60171-Bloom
On Sept. 14, LaKeitha Victoria Lawhorn, 41, of Florida, was charged by indictment with three counts of wire fraud.
According to the indictment, Lawhorn applied for and received three PPP loans on behalf of herself and her company, Home Empire Enterprises, LLC, based upon materially false information about the borrowers average monthly payroll and annual gross receipts, as well as falsified IRS tax forms submitted with her applications. The indictment further alleges that, as part of the fraud scheme, Lawhorn sought forgiveness of the fraudulent PPP loans she received.
Assistant U.S. Attorney David Snider is prosecuting the case. Assistant U.S. Attorney Darren Grove is handling asset forfeiture.
U.S. v. Jewell Farrell Johnson, Case No. 23-cr-60172-Martinez
On Sept. 14, Jewell Farrell Johnson, 46, of Florida, was charged by indictment with two counts of wire fraud.
According to the indictment, Johnson applied for and received two PPP loans, one on behalf of herself as a sole proprietor and one on behalf of LRJ Enterprises of South Florida, based upon materially false information about the borrowers average monthly payroll, as well as falsified IRS tax forms submitted with her applications. The indictment further alleges that, as part of the fraud scheme, Johnson sought forgiveness of the fraudulent PPP loans she received. Additionally, Johnson allegedly applied for a loan through the EIDL program for her company, G.I.G Productions LLC, based upon materially false information about the borrowers annual gross revenue in 2019.
Assistant U.S. Attorney David Snider is prosecuting the case. Assistant U.S. Attorney Darren Grove is handling asset forfeiture.
U.S. v. Carolyn Denise Wade, Case No. 23-cr-60173-Williams
On Sept. 14, Carolyn Denise Wade, 48, of Florida, was charged by indictment with one count of wire fraud.
According to the indictment, Wade applied for and received a PPP loan on behalf of herself as a sole proprietor based upon materially false information about the borrowers total gross business income for the year 2019, as well as a falsified IRS tax form submitted with her application. The indictment further alleges that, as part of the fraud scheme, Wade sought forgiveness of the PPP loan she received.
Assistant U.S. Attorney David Snider is prosecuting the case. Assistant U.S. Attorney Darren Grove is handling asset forfeiture.
U.S. v. Rorie Brown, Case No. 23-cr-60174-Williams
On Sept. 14, Rorie Brown, 42, of Florida, was charged by indictment with two counts of wire fraud.
According to the indictment, Brown applied for and received one PPP loan on behalf of himself as the sole proprietor, based upon materially false information about the borrowers total gross business income for the year 2020, as well as a falsified IRS tax form submitted with his application. In addition, Brown submitted an application to the SBA for an EIDL that contained materially false information, including, among other things, the borrowers gross revenues, cost of goods sold, and number of employees.
Assistant U.S. Attorney Trevor Jones is prosecuting the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
U.S. v. Alexis Monique Greene, Case No. 23-cr-60182-Dimitrouleas
On Sept. 28, Alexis Monique Greene, 47, of Florida, was charged by indictment with two counts of wire fraud.
According to the indictment, Greene applied for and received two PPP loans based upon materially false information about the borrowers gross income and purpose for the loan, as well as a falsified IRS tax form submitted with her applications. The indictment further alleges that, as part of the fraud scheme, Greene sought forgiveness of the PPP loans she received.
Assistant U.S. Attorney Marc Anton is prosecuting the case. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.
U.S. v. Ritchie Noah Dubuisson, Case No. 23-cr-60183-Martinez
On Sept. 28, Ritchie Noah Dubuisson, 25, of Florida, was charged by indictment with one count of wire fraud.
According to the indictment, Dubuisson applied for and received a PPP loan based upon materially false information about the borrowers gross income and purpose for the loan, as well as a falsified IRS tax form submitted with his application. The indictment further alleges that, as part of the fraud scheme, Dubuisson sought forgiveness of the PPP loan he received.
Assistant U.S. Attorney Marc Anton is prosecuting the case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
U.S. v. Keshondra Tameisha Davis, Case No. 23-cr-60184-Altman
On Sept. 28, Keshondra Tameisha Davis, 37, of Florida, was charged by indictment with one count of wire fraud.
According to the indictment, Davis applied for and received a PPP loan based upon materially false information about the borrowers gross income for the year 2019 and purpose for the loan, as well as a falsified IRS tax form submitted with her application. The indictment further alleges that, as part of the fraud scheme, Davis sought forgiveness of the PPP loans she received.
Assistant U.S. Attorney Marc Anton is prosecuting the case. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
U.S. v. Allen Dorvil, Case No. 23-cr-60185-Moore
On Sept. 28, Allen Dorvil, 33, of Florida, was charged by indictment with one count of wire fraud.
According to the indictment, Dorvil applied for and received a PPP loan based upon materially false information about the borrowers gross income and purpose for the loan, as well as a falsified IRS tax form submitted with his application. The indictment further alleges that, as part of the fraud scheme, Dorvil sought forgiveness of the PPP loan he received.
Assistant U.S. Attorney Marc Anton is prosecuting the case. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
U.S. v. Jean Pierre-Toussant, Case No. 23-cr-60189-Moore
On Oct. 5, Jean Pierre-Toussant, 35, of Florida, was charged by indictment with one count of wire fraud.
According to the indictment, Pierre-Toussant applied for and received one PPP loan on behalf of himself as a sole proprietor based upon materially false information about the borrowers total gross business income for the year 2019, as well as a falsified IRS tax form submitted with his application.
Assistant U.S. Attorney Bertha Mitrani is prosecuting the case. Assistant U.S. Attorney Sara Kleo is handling asset forfeiture.
U.S. v. Ancy Morancy, Case No. 23-cr-60191-Bloom
On Oct. 5, Ancy Morancy, 33, of Florida, was charged by indictment with one count of wire fraud.
According to the indictment, Morancy applied for and received one PPP loan on behalf of himself as the sole proprietor of Moore Services Investment Group, LLC, based upon materially false information about the borrowers total gross business income for the year 2019, as well as a falsified IRS tax form submitted with his application.
Assistant U.S. Attorney Bertha Mitrani is prosecuting the case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
U.S. v. Marcus Errol Powell, Case No. 23-cr-60192-Gayles
On Oct. 5, Marcus Errol Powell, 37, of Florida, was charged by indictment with one count of wire fraud.
According to the indictment, Powell applied for and received one PPP loan on behalf of himself as the sole proprietor of Bonvivant Industries, LLC, based upon materially false information about the borrowers total gross business income for the year 2020, as well as a falsified IRS tax form submitted with his application.
Assistant U.S. Attorney Bertha Mitrani is prosecuting the case. Assistant U.S. Attorney Jorge Delgado is handling asset forfeiture.
U.S. v. Derrick J. Nesbitt, Case No. 23-cr-60193-Huck
On Oct. 5, Derrick J. Nesbitt, 46, of Florida, was charged by indictment with two counts of wire fraud.
According to the indictment, Nesbitt applied for and received two PPP loans on behalf of himself as the sole proprietor of Designer Life, LLC, based upon materially false information about the borrowers total gross business income for the year 2019, as well as a falsified IRS tax form submitted with his application.
Assistant U.S. Attorney Bertha Mitrani is prosecuting the case. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
U.S. v. Keith Dunkley, Case No. 23-cr-60197-Smith
On Oct. 6, Keith Dunkley, 46, of Florida, was charged by information with one count of conspiracy to commit wire fraud.
According to the information, Dunkley conspired to cause the submission of false and fraudulent applications and received funds for one PPP loan and one EIDL on behalf of himself as a sole proprietor and for Global Group Alliances, LLC, which applications included materially false information about, among other things, the borrowers total gross business income for the year 2019, as well as a falsified IRS tax form submitted with his application.
Assistant U.S. Attorney Trevor Jones is prosecuting the case. Assistant U.S. Marx Calderon is handling asset forfeiture.
U.S. v. George Anthony III, Case No. 23-cr-80168-Cannon
On Sept. 14, George Anthony III, 50, of Florida, was charged by indictment with two counts of wire fraud.
According to the indictment, Anthony applied for and received one PPP loan on behalf of himself as a sole proprietor based upon materially false information about the borrowers total gross business income for the year 2019, as well as a falsified IRS tax form submitted with his application. In addition, Anthony unsuccessfully applied for a second PPP loan using the same false information.
Assistant U.S. Attorney Trevor Jones is prosecuting the case. Assistant U.S. Daren Grove is handling asset forfeiture.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe; Special Agent in Charge Jeffrey B. Veltri, FBI, Miami Field Office; Special Agent in Charge Brian Tucker, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; and Sheriff Gregory Tony of the Broward Sheriffs Office (BSO) made the announcement.
FBI Miami, FRB-OIG, and BSO investigated these cases.
The maximum sentence for a wire fraud conviction is 20 years in prison. The maximum sentence for a conspiracy to commit wire fraud conviction, as charged, is 5 years in prison. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment, information, and complaint contain mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the departments response to the pandemic, please visithttps://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Floridas U.S. Attorneys Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fr.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justices National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form athttps://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.govunder the case numbers referenced above.
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