Sentencing Outcomes in PPP Loan Fraud Cases (Payroll Protection Program)
Vložit
- čas přidán 11. 09. 2024
- Since May 2020, when the government approved COVID-19 economic relief programs for small businesses, the Payment Protection Program (“PPP”) and the Economic Injury Support Loan (“EISL) fraud has made constant headlines.
As more and more cases march towards sentencing hearings next, let’s look at the sentencing outcomes to date.
As soon as the government rolled out the PPP loan program in May 2020, federal law enforcement also began investigating allegations of fraud. These investigations involved, among other things:
Fraud in the PPP (and EISL) loan application process.
Disbursement of loans to non-qualified individuals or businesses; and
Misuse of proceeds from PPP loans, designed to cover payroll and other business expenses.
Those initial law enforcement investigations quickly turned into arrests and prosecutions against hundreds of people. To this day, the government continues to file new PPP loan fraud cases every week.
Most cases are now at a stage where, after pleading guilty, defendants are completing their pre-sentence investigations and prepare to face facing the sentencing judge at a sentencing hearing.
Let’s look at how prosecutors and federal judges are approaching sentencing for PPP loan fraud defendants. For example, is the primary consideration the loan amount? Are most defendants going to prison, or are many also considered for probation? What is the average prison term?
As of now, the evidence is more anecdotal than not, but we will monitor developments closely as more defendants face sentencing.
One question many people ask online and social media are, “Do people go to prison for a $20k PPP loan?” suggesting that jail or prison for a $20k PPP loan might not be a possible outcome.
The reality is that people go to prison for $20,000 PPP loan fraud. While sentencing judges determine a defendant’s prison sentence on a case-by-case basis, time in jail or prison cannot be ruled out. Indeed, current cases show most PPP loan fraud sentences include time in prison.
For people whose cases involve smaller loan amounts, the problem remains that prosecutors and sentencing judges often want to make an example out of anyone who participated in PPP loan fraud.
And, Acting US Attorney Nicholas Ganjei explained his reasoning in going after PPP loan fraud aggressively:
“Stealing limited COVID relief funds is the very definition of stealing from the less fortunate… Every dollar that was stolen and extravagantly spent ….was one less dollar that went to a struggling business scrambling to meet its payroll obligations to employees. The Department of Justice and its partners will do everything in their power to investigate and prosecute those that would deign to steal these limited funds and stall national recovery efforts.”
This sentiment can be worrisome for anyone who participated in allegedly fraudulent PPP loans, regardless of the loan amount.
At the sentencing of Ganell Tubbs, a woman who pleaded guilty to PPP loan fraud of $2 million, the sentencing judge handed down a sentence of 41 months in prison. Judge Brian Miller’s comments at the sentencing hearing provide insight into how a Judge might think about the unique or mitigating circumstances of a PPP loan fraud defendant.
The Judge admitted that it was difficult for him to decide on Tubbs’ sentence, which carried up to 30 years in prison and a $1 million fine. Tubbs claimed close to $2 million in PPP loans for businesses that did not qualify. Tubbs used the loan proceeds to pay off personal debts, student loans and purchase many goods and services.
Judge Miller noted that the government was able to find the fraud quickly and recovered all but $14,000 of the loan money. Still, he could not give Tubbs a complete pass for this.
“Should Miss Tubbs get the benefit of the fact that the government figured it out quickly?” Judge Miller asked aloud, questioning why the bank gave Tubbs the loans with little to no documentation.
“On the other side of that equation, she walked in and defrauded them,” Judge Miller said. “It was a bad fraud, but she actually went in there and did it.”
Tubbs’ lack of criminal history had an impact on the Judge. “It is not like she is somebody who has been running around robbing people for the last 10 years,” he said. “Three years in prison is like 20 years for some other people. Some people can go to prison and knock out those years like it is nothing. For someone like Miss Tubbs, it is really a harsh environment.”
Based on Tubbs’ lack of prior criminal history and her quick acceptance of responsibility, Judge Miller sentenced Tubbs at the bottom of the sentencing guidelines, which suggested a 41- to a 51-month prison sentence.
The Tubbs case shows how a federal sentencing judge considers different factors to ultimately decide on a sentence in a PPP loan fraud case.
I would like to see strong punishments because so many people who deserved PPP loans were denied them when the funds had been already exhausted by fraudulent payouts. Business that could have been saved were not. Good, deserving people were victimized.
Agreed 💯
shutup, the government has unlimited money. they could reasily reach out and help every single business that was in need with no issues at all but they choose not too cus they , the government , are the real frauds! they are crooked and have no sympathy for us as humans. the system is designed to be this way.. they scam us every sing day, in every single way they can... i amend the scammers. as long as they aren't scamming individual people or their businesses, i hope they take the federal reserves paper all day long! 💪🏽😁
@@txddjames facts, they got money to fund wars not businesses
@@txddjames Tbf play stupid games and you'll win stupid prizes. I sort of get your point but amongst the people you're championing are Child sex traffickers and even worse. And good only knows what they'll do with that money.
Take yo ass bacc to yo own country with this strong punishment crapp
Its OK for bureaucracy to steal your money, but not the common man. What distorted reality have i awoken to?
Exactly. What they did was wrong. However white collar criminals rarely go to prison as they steal millions & billions.
Cause it's tax payer money
I am a small concrete business owner. I managed to keep my employees busy during this time. Did not get a ppp loan. So many small companies in my area worked because we were essential companies. These companies did get ppp loans and did not use it for employees. But bought new trucks and equipment etc. I am so aggravated by the way the government just handed money out. They should have and hopefully will check all these small companies to see if they really really needed it
I saw one lady got arrested for misusing funds meant for her business
I bust my a** everyday working at an understaffed grocery store that can’t hire enough good help. We’re scrambling with a skeleton staff to keep up. Theft is probably a problem as well. Probably over half our staff is dedicated to shopping for people online and delivering orders. This tells me one thing. A suspicious amount of people somehow all work from home now and make enough to have all their food delivered to their house. I sure couldn’t afford that and people seem to be getting money somewhere. I drive a 17 year old car too when people seem to be having no trouble buying new ones as well lol. Something is off. Something doesn’t add up. I think there is a lot of ppp and welfare fraud going on. Disability, unemployment, etc.
good move uncle sam....you gave taxpayer money to scammers and now they have to pay for them to be in prison, as well as paying investigators to prosecute them.......would be great if the govt learned how to do their due diligence before they spent our money
If I went to a bank teller and said give me $600K. What would happen to me? Exactly, I know some businesses that put pools in their homes, Bought 225K cars, remodeled homes, bought lake houses and boats. I guy I know retired. Interestingly , these people companies earned record profits during the pandemic because they added new products that fit into the benefit of the pandemic. It's crazy ..because these people had a wonderful life during the pandemic and NEVER needed any extra loans or money.... My company needed the money but we filed a loss on our 2019 taxes and were denied. Yes, I am pissed but these people clearly did not these millions of dollars and successful kept the money. I know at least 5 different people that did this in NORTHWEST ARKANSAS. Forgot to mention they all said they used their PPP LOAN for the extras.. like they were proud of their actions.
I know a few people who got the PPP loan fraudulently and they offered to pay it back before being charged or sentenced. Probably the smartest thing to do.
Most people that got PPP don't even have the income to pay it back. Hence why they got the PPP in the first place.
I know someone that made a lot of money doing PPP loan scams. They tried to get me to do it. I was really thinking about it. I things were rough. Everybody was doing it. They were driving new cars. Everyone had all kinds of new stuff. Money was floating around like crazy. Then it stopped all at once. All of those same people have gotten cars repossessed and more. Now they are all wondering when the man is going to show up at there door.
Wait! Did you say an accountant had some of his clients do PPP loans then snitched on them?!? Wow!
The new Judy Justice court show on Imbd has had at least two cases where someone has said they received PPP funds. I think both involved a business of one or two people. Hopefully the attorneys have this information.
Judge Judy and PPP loans are a scam .... Open your eyes Opie. Just sayin..
Why would you want them in jail? You don’t know if they were legitimate or not!
I know someone personally that stole over 1 million and didn’t get jail time. Wtf?
1 million dollar fine 30 years in prison
The variability to application of sentencing is atrocious and should be deemed unconstitutional. Are we enforcing laws or are we arbitrarily or via data analysis deciding who is worth more of a taxpayer squeeze sitting in prison and who can actually go get a decent wage job and pay into the tax system later. Law enforcement and prison is the real racket. End the police and the greek and roman games we are trapped amongst.
Please keep it up, pin point those criminal thieves.
Question ❓⁉️. If a loan have been forgiven, can the government still come after or investigate that person?
Yes they still will. They'll be auditing every single loan most likely
If it was a fraudulent application to begin with , yes.
The sentences or two light that’s why these people do this ….spending 12 months in jail ain’t nothing compared to the crime they committed
Ok.. the program started in May 2020.. that says a LOT
If I’ll steal a Pk of $1.00 gum from the store, I will go to jail just for stealing so these people need to definitely go to jail for stealing from the government which is ( we the people) taxpayers money. $20.000 is not petty money nor the millions that were taken. This disaster of
The ppl was for the taken, and that’s what happened people seen what they thought was free money and the scams were born. So those who filed fraudulently needs jail time, those that file and received section 8, Food stamp or any other governments benefits should lose them all. Our taxpayers pay for those services as well trying to help someone out and if that’s not enough a person files for a ppl and gets paid from that as well is more than I can stand😡. GO TO JAIL EACH AND EVERYONE OF YA’LL… they deserve it😡😡
Even if they don't all go to prison, Their lives will be ruined. The Feds can offer a plea deal that involves admitting guilt in exchange for no jail time, but having a felony on their record will do damage for decades including job loss, professional license loss, government aid and housing loss. There is also the financial devastation of attorney fees, restitution and fines. These damages will trigger a downward spiral that will dictate the path of their lives for a long time.
@@AbbyC543 well let those actors begin. I’ve and others on this planet are doing the right thing and still I struggle but crooks are always getting a free pass and the benefits of their crime. It’s true nice finishes last and I’m tired of being last. I know life not fair , but for once I would like to see the good guys come out ahead just once in my life. I’ve could of scam just like everyone else and enjoyed the fruits of the scam if only just for a second , but I knew there’s consequences for every action and it was not worth it for me . I choose to get my blessing from GOD which would last longer, but to get $20,000 in a lump from lying makes my blood boil .
Entrapment
So are the Banks are getting in legal trouble cause they could had denied all this business whom weren’t legal business
Thank you!!!..that's what I wanna know
Security fraud and unemployment ruined our country bro. Banks do nothing except take money and illegally short stock. Its all fucked and issa house of cards that will coming down soon.
Is there any whistleblower hotline?
Aqua bar here in Escondido CA got a PPP loan and owner bragged to me thaT he bought a new filtration system. He has other stores but I know he doesn't have 500 employees
Catch all of them!
So even if they have their loans fully forgiven are they still going to get audited?
Great because they lie initially and a they paid it off on a lie, he said it’s like robbing a bank then taking the money back to the bank. They all deserve the 6X6 cell
Amazing work
Think Jo and Jill Gudice.
im srry but probation or 2 years in prsion is well worth scamming the government. i know some many people who flipped that 20k i wish i did it. 2 years federal come home coccck strong and stash my 20k in a etf or fund till i get home easy
U can make 20 to 60 grand working at McDonald's in 3yrs come on bro.... they still gonna get audited anytime u move 10,000.00 out or In ACCOUNT government will know... you pay 10,000 cash for a car goverment knows.... 20 k or a 100k for 2/3 yrs... U can make that doing doordash home enjoying life... Now the goverment will take your eft and charge you with tax invasion now u even worse off
Loser. You MUST be a convict.
Lol 2 years at Amazon you could make 100k and you get to sleep in your own bed
Goofy as fuck 🤣
Dummy 20k, yeah you definitely about to pay back that 20k plus interest and fines SMH. GET YOUR MIND RIGHT!!!!!
It’s ridiculous how many people set themselves up. 🤡🙏🏾🙏🏾🙏🏾
Only a few got arrested, Lots of people got away with $10,000-20,000 Smh I wish i knew they wouldn't do💩
Aren’t they gonna arrest thoSe people too or? Like what happens to them ?
Yea they will find everyone even if it takes several years
My ex pulled a PPP loan and she doesn’t even own a business! No collateral let alone the credit to do anything! Fraud up and down and my friends who actually own their own business got denied… how can this be reported? Or if we can get people onboard to submit?
No need to report. She’ll be found out
@@Kiyonce.Kartier found out?
@@Kiyonce.Kartier He tryna put the Feds on her right now! 😂😂😂😭
na u snitching on your ex 🤣 nigga petty as hell
😂😂😂 you can snitch tho, just google how.
6:33
Lmao yeah, I’m blessed 🥲.