NC Man Charged in Scheme to Get $6 Million in COVID-19 Funds

Weekly Newsletter | October 2, 2020 | Subscribe

COVID-19 Related Fraud

----------------------------------------------------------------------------------- The News and Observer: NC man charged in scheme to get $6 million in COVID-19 funds meant for small businesses A North Carolina man faces federal fraud charges after he applied for $6.1 million from the Paycheck Protection Program that is intended for businesses affected by the coronavirus pandemic. He received more than $1.7 million he applied for by submitting 14 fraudulent PPP loan applications under businesses named Pan Insurance Agency, White Walker, Khaleesi and The Night’s Watch. The last three are “Game of Thrones” references.

WGRZ: North Tonawanda man faces COVID-19 relief fraud charges A New York man was charged by criminal complaint with wire fraud in relation to a national emergency, as well as aggravated identity theft. Allegedly, he fraudulently applied for an Economic Injury Disaster Loan (EIDL) through the U.S. Small Business Administration (SBA). He allegedly applied for the EIDL and was given $60,500 by allegedly using the name and personal information of another person, without their permission.

Dept. of Justice: Hawaii CEO Charged with COVID-Relief Fraud A Hawaii man has been taken into custody on allegations that he fraudulently obtained more than $12.8 million in Paycheck Protection Program (PPP) loans. The complaint alleges that the Chief Executive Officer of Navatek LLC (now known as Martin Defense Group LLC), submitted at least two fraudulent PPP loan applications. He received approximately $12.8 million in PPP funds, over $2 million of which he transferred to his own personal accounts.  According to the charges, he falsely inflated the number of employees on the loan application and falsely certified that the applicant and its affiliates would not receive, and had not received, another PPP loan.

Case Settlements & Opinions


Dept. of Justice: Multinational Industrial Engineering Company to Pay $22 Million To Settle False Claims Act Allegations Relating to Evaded Customs Duties Linde GmbH and its U.S. subsidiary Linde Engineering North America LLC have agreed to pay the United States more than $22.2 million to resolve allegations that Linde violated the False Claims Act by knowingly making false statements on customs declarations to avoid paying duties owed on the companies’ imports.

Dept. of Justice: Addiction Recovery Physician Pays $530,000 To Resolve False Claims Act Allegations of Billing for Psychotherapy Rendered by Unlicensed or Unsupervised Providers and Other Improper Billings Addiction Recovery physician, Dr. Chambless Johnston, and his practice East Tennessee Recovery have paid $530,000 to resolve allegations that they violated the False Claims Act. These allegations include billing for individual and group psychotherapy provided by unlicensed or unsupervised providers, upcoding Evaluation and Management office visits, and providing case management services not covered in the practice’s contract or improperly rendered in a group setting.

PRNewswire: Feds Hammer Industries for the Blind, Inc. for Exploiting Blind People to Skirt US Laws - "Outrageous Conduct" Industries for the Blind, Inc. has agreed to pay the United States $1,938,634 to settle allegations that they violated the False Claims Act by knowingly mislabeling Made in China goods as Made in America and falsely claiming Ability One (blind-made) product status to gain lucrative government contracts.

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