NY Secures $200,000 from Contractor Who Allegedly Faked Diversity Metrics

Weekly Newsletter | October 23, 2020 | Subscribe

COVID-19 Related Fraud

----------------------------------------------------------------------------------- Shore News: Three Charged for $1.1 Million COVID-19 PPP Loan Fraud Three were charged in a $1.1 million fraud scheme to obtain COVID-19 relief funds from the Small Business Administration. The scheme resulted in 401 fraudulently filed applications seeking Economic Injury Disaster loans made available to those impacted by the coronavirus pandemic and several applications were submitted using false information for the purpose of facilitating the fraudulent activity.

Dept. of Justice: Leesburg Man Arrested for $2.5M CARES Act Loan Fraud A Virginia man was arrested on charges of fraudulently obtaining over $2.5 million in loans through the Paycheck Protection Program and spending the money on luxury items. He allegedly carried out the scheme by creating fraudulent payroll documentation for two businesses that he owns, submitting it in support of the PPP loan applications and obtained approximately $2,501,753 in loan proceeds. He then allegedly spent those funds, in part, on items unrelated to any legitimate PPP-related expense, such as a Lexus automobile and a Cessna aircraft.

Dept. of Justice: Five Charged in Connection with COVID-Relief Fraud Scheme Five individuals were charged for their alleged participation in a scheme to file fraudulent loan applications seeking more than $1.1 million in forgivable Paycheck Protection Program (PPP) loans. They allegedly submitted fake tax documents and misrepresented the number of employees and payroll expenses.

Case Settlements & Opinions


NY Attorney General: Attorney General James Secures $200,000 From Contractor Who Faked Diversity Metrics for a Billion-Dollar Public Works Project Bell Mechanical Contractor Inc. reached an agreement to resolve allegations that it falsely claimed to meet the state diversity requirements in order to win and maintain contracts on the $1.2 Billion Rochester Schools Modernization Program (RSMP).

Dept. of Justice: Arlington Man Pleads Guilty to $3.5M Healthcare Fraud Conspiracy A Virginia man who worked in different pharmacies pled guilty to his role in a conspiracy to commit health care fraud that resulted in losses of over $3.5 million. He allegedly conspired with the owner and others in a number of different fraudulent schemes to defraud health care benefit programs, including TRICARE, Medicare, Virginia Medicaid, and Maryland Medicaid. The schemes included generating false prescriptions, billing health insurance companies for prescriptions that were never filled, and billing patients’ health care benefit programs for numerous high cost medications that he and his co-conspirators knew were not prescribed and/or never received.

AP: US officials: OxyContin maker to plead to 3 criminal charges Purdue Pharma will plead guilty to three federal charges as part of a $8 million settlement. The company will plead guilty to three counts, including conspiracy to defraud the United States and violating federal anti-kickback laws. This settlement is the highest-profile display yet of the federal government seeking to hold a major drug maker responsible for an opioid addiction and overdose crisis linked to more than 470,000 deaths in the country since 2000.

Dept. of Justice: California University to Pay $225,000 For Allegedly Violating Ban on Incentive Compensation San Diego Christian College (SDCC) will pay $225,000 to resolve allegations that it violated the False Claims Act by submitting false claims to the U.S. Department of Education in violation of the federal ban on incentive-based compensation.

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