STATESBORO, GA: A Richmond County man has admitted to running a program to submit fraudulent applications for small business COVID-19 relief funding that garnered more than $4 million in payments.
Kamario Thomas, 42, of Augusta, is being charged with the conspiracy, according to criminal information, said David H. Estes, US Attorney for the Southern District of Georgia. The guilty plea to the felony charge subjects Thomas to a statutory sentence of up to five years in federal prison, followed by up to three years of supervised release, along with substantial fines and a restitution to the US government. There is no probation in the federal system.
“This conviction represents the continued, vigorous prosecution of those who have unfairly resorted to government funding for struggling small businesses during the COVID-19 pandemic,” said US Attorney Estes. “Working with our law enforcement partners, we will hold accountable those who attempt to illegally profit from these programs.”
The 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act provided more than $650 billion in funding for qualifying small businesses facing financial challenges during the COVID-19 pandemic, with grants and forgivable loans, which were available through the Paycheck Protection Plan (PPP) or Economic Injury Disaster Loans (EIDL).
In his plea agreement, Thomas admits that he filed false and fraudulent EIDL applications for himself and received hundreds of thousands of dollars in kickbacks in exchange for completing and filing fraudulent PPP and EIDL applications on behalf of his co-conspirators. To prepare these applications, Thomas fabricated IRS forms and tax records.
Overall, the program caused the disbursement of more than $4 million in fraudulent CARES Act loans and grants.
“Using the Small Business Administration’s programs fraudulently undermines the spirit and true intent of strengthening the backbone of the nation’s economy: small businesses,” said Amaleka McCall-Braithwaite, special representative for the East region of the SBA’s office inspector general. “OIG is committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the US Attorney’s Office and our law enforcement partners for their dedication and quest for justice.”
“In far too many cases, greedy opportunists took advantage of the PPP and diverted much-needed funds from the companies that badly needed them,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “This pleading signals that the COVID-19 Fraud Enforcement Task Force will continue to pursue and hold accountable those who chose greed over compassion for their fellow Americans who have faced economic hardship during the COVID pandemic.”
“CARES Act funds should help people and businesses harmed by the pandemic, not to line the pockets of overly greedy professionals,” said Keri Farley, the FBI Atlanta special agent in charge. “The FBI continues to work with our partners to do everything within our power to ensure that stolen funds are returned to the public and individuals involved in this type of criminal behavior are prosecuted to the fullest extent of the law.” will.”
“The defendant used deceit and fraud to obtain credit that he was not entitled to receive for his own financial gain,” said Tommy D. Coke, inspector in charge for the Atlanta Division of the US Postal Inspection Service. “This guilty plea is a reminder that the US Postal Inspection Service, along with our law enforcement partners, remains committed to investigating individuals for these types of crimes and holding perpetrators accountable.”
“An important responsibility of the US Department of Labor’s inspector general is to investigate fraud related to COVID-19 benefit programs. Through collaboration and sharing of resources, the federal law enforcement community has continued to make great strides in holding COVID-19 fraudsters accountable,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, US Department of Labor, Office of Inspector General. “We will continue to work closely with the U.S. Attorney’s office and our law enforcement partners to protect COVID-19 benefit programs, including unemployment benefit programs, for those who need them most.”
The case is being investigated by the Small Business Administration Office of Inspector General, the IRS Criminal Investigation, the FBI, the US Postal Inspection Service and the Department of Labor Office of Inspector General, and for the United States by Assistant US Attorney Jenifer A.Stanley .
Anyone with information about suspected fraud related to COVID-19 may report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) hotline at 866-720-5721 or through the NCDF web complaint form at : https://www .justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
