SAVANNAH, GA: A Georgia woman has been sentenced to prison and ordered to repay more than $1 million in fraudulently received funds from a COVID-19 small business relief program.
Salmat Deyji, 26, of Stockbridge, Georgia, was sentenced to 26 months in prison after pleading guilty to conspiracy to commit wire fraud and money laundering, said Jill E. Steinberg, US Attorney for the Southern District of Georgia. US District Court Judge Lisa Godbey Wood also ordered Deyji to pay the government $1,073,307 in damages and be released under supervision after serving three years in prison.
There is no probation in the federal system.
“Congress allocated significant funds to support struggling small businesses during the COVID-19 pandemic, and unfortunately, scammers found countless ways to use those funds,” said US Attorney Steinberg. “Salmat Deyji not only provided herself with undeserved help, but also benefited by engaging in fraudulent activities on behalf of others. She will now be held accountable for this substantial theft.”
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, including grants that go beyond the Paycheck Protection Program (PPP) are available.
In her plea agreement, Deyji admitted to completing and submitting fraudulent PPP loan applications for herself and others in the Southern District of Georgia and elsewhere who otherwise did not meet qualifications for the program. She helped file these applications with fake IRS forms and tax papers that she prepared. Her plan involved soliciting information from members of the US Army and friends and family she recruited to obtain PPP funds in exchange for bribes.
Overall, the program caused the payment of more than $1 million in fraudulent CARES Act grants to more than three dozen applicants. At least six others who participated in the program pleaded guilty to the related charges, with sentences ranging from probation to 22 months in prison, along with extensive warrants for redress.
“Today’s sentencing should be a stark reminder that our agents and those of our partner law enforcement agencies are relentless in pursuing those who choose to defraud the government,” said Acting Special Agent Scott Moreland of the Department of the Army Criminal Investigation Branch big procurement scam.
“Those who illegally use government aid for their own benefit undermine the effectiveness and integrity of programs designed to assist those in need of government assistance,” said Special Agent in Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Branch. “DCIS and our investigative partners are committed to bringing those who exploit these programs for selfish gain to justice.”
“During the COVID-19 pandemic, the Paycheck Protection Program was enacted by Congress in response to support for businesses experiencing economic uncertainty,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Unfortunately, people like Deyji and her co-conspirators fraudulently requested and received these funds for their personal gain. IRS-Criminal Investigation and our law enforcement partners will continue to prosecute those who have defrauded the government and stolen from others in need of economic assistance.”
“The US Secret Service’s investigative collaboration with our law enforcement and law enforcement partners demonstrates once again our commitment to bring to justice those who choose to exploit the systems put in place to assist those affected by the COVID-19 pandemic.” said Craig Reno, resident agent in charge of the US Secret Service’s Savannah Resident Office. “The results of these cases should deter fraudsters from being held accountable to the fullest extent of the law.”
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.
The case was investigated by the Department of the Army Criminal Investigation Division, the Defense Criminal Investigative Service, Internal Revenue Service Criminal Investigations and the US Secret Service and prosecuted by Assistant US Attorney Matthew A. Josephson for the United States of America.
