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Black America Web
7 days ago
- Business
- Black America Web
Famous Figures Who Got Charged with PPP Loan Fraud
Source: Paul Archuleta / Getty The Paycheck Protection Program was meant to help small businesses survive the pandemic. Instead, some well-known names used it to cash in. And a lot of them got caught. When COVID-19 shut the country down, the U.S. government launched the PPP to keep workers paid and businesses afloat. But the fast rollout came with little oversight. That gap created an opening. Scammers jumped in. Among them? Some famous faces who saw an opportunity to cheat the system. Federal investigators tracked down hundreds of fraudsters. Many quietly settled. Others made headlines. In addition to the list below, high-profile musicians Lil Wayne and Chris Brown did find themselves wrapped in scrutiny surrounding the appropriation of their COVID-19 relief funds. Though they certainly weren't the only ones. Lil Wayne Lil Wayne's company, Young Money Touring Inc., received an $8.9 million SVOG grant intended to support live entertainment businesses impacted by the pandemic. Reports indicate that the funds were used for various personal expenses, including: Over $1.3 million on private jet flights More than $460,000 on designer clothing Approximately $2 million to settle a debt with his former manager Nearly $88,000 billed for a canceled New Year's Eve performance While these expenditures have raised questions about the appropriate use of relief funds, there have been no formal charges filed against Lil Wayne regarding PPP loan fraud. Chris Brown Chris Brown's touring company, CBE Touring, reportedly secured a $10 million SVOG grant. Allegations suggest that Brown personally received $5.1 million of this amount and spent nearly $80,000 on a lavish birthday party, which included expenses for models, an LED dance floor, and other luxury items. Despite public criticism over the use of these funds, Chris Brown has not been charged with any crimes related to PPP loan fraud. From reality TV stars to pro athletes and social media influencers, these high-profile figures now face criminal charges, massive fines, or even prison time. Their cases raise big questions: How did they slip through? Who helped them? And what comes next? Here's a breakdown of the most notorious celebrity PPP fraud cases. And how each one unraveled. Supreme Court Blocks Order To Rehire Federal Workers Why Iman Shumpert Is Asking The Court to Jail Teyana Taylor Offset Seeks Spousal Support From Cardi B in Ongoing Divorce Famous Figures Who Got Charged with PPP Loan Fraud was originally published on Reality TV stars from Chrisley Knows Best , convicted in 2022 of defrauding banks out of over $30 million and evading taxes. A pastor from Raleigh, North Carolina, Mitchell Summerfield pleaded guilty to conspiracy to commit bank and wire fraud after securing over $400,000 in fraudulent PPP loans. Known from Love & Hip Hop: Atlanta , sentenced to over 17 years for bank fraud after misusing over $2 million in PPP funds on luxury items and a Ponzi scheme. Former NFL player, sentenced to over three years in prison for illegally receiving over $1 million in COVID-19 relief money. Member of the R&B group Pretty Ricky, sentenced to 20 months in prison for his role in a $24 million COVID-19 relief fraud scheme. Former Olympic speed skater, convicted of fraudulently applying for $10 million in PPP loans for a film production company with no employees. Former lawyer, served time for PPP loan fraud after falsely claiming expenses for a nonprofit organization. Miami man, charged with fraudulently obtaining $3.9 million in PPP loans and using the funds to buy luxury items. Houston man, sentenced to over nine years in prison for obtaining over $1.6 million in PPP loans and spending on personal expenses. Leader of a Los Angeles-based fraud ring, sentenced to 17 years for stealing $18 million in PPP funds. Member of the same fraud ring as Ayvazyan, sentenced to over 10 years for her role in the scheme. Also part of the Los Angeles fraud ring, sentenced to six years in prison for PPP loan fraud. Former TV news anchor indicted alongside her husband for allegedly submitting false PPP loan applications, obtaining $300,000 personally, and profiting nearly $300 million through their company, Blueacorn. Charlotte City Council member indicted for fraudulently obtaining over $124,000 in federal COVID-19 relief funds through the PPP and EIDL programs. Former Assistant Atlanta City Attorney and police officer charged with conspiracy to commit wire fraud and money laundering after allegedly obtaining over $7 million in PPP loan funds. Former Kansas state legislator sentenced to 27 months in federal prison for fraudulently obtaining COVID-19 relief funds through the PPP and EIDL programs. Black America Web Featured Video CLOSE
Yahoo
02-04-2025
- Business
- Yahoo
Lawmakers take action after report shows Biden-era SBA failed to probe 2 million alleged COVID aid fraudsters
EXCLUSIVE: The respective chairs of the Small Business Committee in both chambers of Congress are unveiling a plan to address the roughly 2 million "likely fraudulent" pandemic aid applications flagged in a recent government report. Sen. Joni Ernst of Iowa and Rep. Roger Williams of Texas, both Republicans, plan to introduce the SBA Fraud Enforcement Extension Act on Wednesday in hopes of corralling the alleged scofflaws who they say broke the law and prevented untold numbers of legitimate U.S. small businesses from receiving crucial aid. The bill extends the statute of limitations to 10 years for fraud surrounding the Shuttered Venue Operators Grant (SVOG) and the Restaurant Revitalization Fund relief programs instituted in 2020. In 2022, Williams, Ernst and other lawmakers sought to do the same to identify potential scofflaw violators of the Paycheck Protection Program. House Small Business Committee Releases Report On Biden-era Electioneering A report from the nonpartisan Government Accountability Office (GAO) found that the Biden-era Small Business Administration (SBA) either signed or guaranteed more than $1 trillion in loans to more than 10 million small businesses. Read On The Fox News App While it had instituted a four-step process to manage fraud, that plan reportedly faltered when the SBA inspector general was unable to fully probe two-thirds of the risk referrals because the agency didn't provide either correct or complete information about those cases. The GAO then made a formal recommendation to the SBA, which, according to the public watchdog's website, remains "open" – and it appeared no action had at least been recorded. The GAO also found that the fraud prevention process had not been fully implemented until "more than half" of aid programs' funding had been approved. Lawmakers Slam Sba 'Stonewalling' Over Michigan Voter Memo As Electioneering Claims Surface "I will not allow criminals to run out the clock and escape justice simply because the Biden administration was asleep at the wheel," Ernst told Fox News Digital on Tuesday. "Thousands of hardworking small businesses were deprived of desperately needed relief because swindlers, gang members, and felons cashing in on COVID drained the programs. Every single con artist who stole from taxpayers will be held accountable." In Ernst's home state, 1,800 restaurants reportedly qualified for SBA aid but never received it, prompting critics to question how much funding was diverted to fraudulent applicants instead of family-run eateries. In Williams' Lone Star State, federal aid allowed tens of thousands of restaurants to stay in business, but others told outlets like Houston PBS that such funding ran out before many could get back on their financial feet. Lawmakers Demand Answers From Top Michigan Official Over Alleged 'Weaponization' Of Taxpayer Funds For Electioneering The Texas Restaurant Association told the station that 12,000 restaurants found themselves in danger of closing by 2022. Hollywood celebrities had also received some of the SVOG funds and spent them on private jets and parties or cash for themselves, Business Insider reported. "The SBA distributes millions of dollars to small businesses in need every year. However, where small business owners found the capital needed to stay afloat during the COVID-19 pandemic, bad actors saw the opportunity to defraud the government," Williams told Fox News Digital. "It is imperative that every fraudster who stole and exploited taxpayer dollars during our nation's utmost hour of need be prosecuted to the full extent of the law." He added that as March marked five years after the first COVID lockdowns, an extension of the SBA and law enforcement's ability to pursue fraudsters must be realized. Fox News Digital reached out to the SBA for comment. When asked about the discrepancies found in the GAO report, an SBA spokesperson told Fox News Digital that Administrator Kelly Loeffler has already taken action to enhance fraud prevention efforts. "The SBA fully supports all efforts to crack down on fraud within its loan programs – in stark contrast to the last administration, which failed to investigate or address more than $200B in estimated pandemic-era fraud," Caitlin O'Dea said. "[SBA] will continue working to hold pandemic-era fraudsters accountable."Original article source: Lawmakers take action after report shows Biden-era SBA failed to probe 2 million alleged COVID aid fraudsters
Fox News
02-04-2025
- Business
- Fox News
Lawmakers take action after report shows Biden-era SBA failed to probe 2 million alleged COVID aid fraudsters
EXCLUSIVE: The respective chairs of the Small Business Committee in both chambers of Congress are unveiling a plan to address the roughly 2 million "likely fraudulent" pandemic aid applications flagged in a recent government report. Sen. Joni Ernst of Iowa and Rep. Roger Williams of Texas, both Republicans, plan to introduce the SBA Fraud Enforcement Extension Act on Wednesday in hopes of corralling the alleged scofflaws who they say broke the law and prevented untold numbers of legitimate U.S. small businesses from receiving crucial aid. The bill extends the statute of limitations to 10 years for fraud surrounding the Shuttered Venue Operators Grant (SVOG) and the Restaurant Revitalization Fund relief programs instituted in 2020. In 2022, Williams, Ernst and other lawmakers sought to do the same to identify potential scofflaw violators of the Paycheck Protection Program. A report from the nonpartisan Government Accountability Office (GAO) found that the Biden-era Small Business Administration (SBA) either signed or guaranteed more than $1 trillion in loans to more than 10 million small businesses. While it had instituted a four-step process to manage fraud, that plan reportedly faltered when the SBA inspector general was unable to fully probe two-thirds of the risk referrals because the agency didn't provide either correct or complete information about those cases. The GAO then made a formal recommendation to the SBA, which, according to the public watchdog's website, remains "open" – and it appeared no action had at least been recorded. The GAO also found that the fraud prevention process had not been fully implemented until "more than half" of aid programs' funding had been approved. "I will not allow criminals to run out the clock and escape justice simply because the Biden administration was asleep at the wheel," Ernst told Fox News Digital on Tuesday. "Thousands of hardworking small businesses were deprived of desperately needed relief because swindlers, gang members, and felons cashing in on COVID drained the programs. Every single con artist who stole from taxpayers will be held accountable." In Ernst's home state, 1,800 restaurants reportedly qualified for SBA aid but never received it, prompting critics to question how much funding was diverted to fraudulent applicants instead of family-run eateries. In Williams' Lone Star State, federal aid allowed tens of thousands of restaurants to stay in business, but others told outlets like Houston PBS that such funding ran out before many could get back on their financial feet. The Texas Restaurant Association told the station that 12,000 restaurants found themselves in danger of closing by 2022. Hollywood celebrities had also received some of the SVOG funds and spent them on private jets and parties or cash for themselves, Business Insider reported. "The SBA distributes millions of dollars to small businesses in need every year. However, where small business owners found the capital needed to stay afloat during the COVID-19 pandemic, bad actors saw the opportunity to defraud the government," Williams told Fox News Digital. "It is imperative that every fraudster who stole and exploited taxpayer dollars during our nation's utmost hour of need be prosecuted to the full extent of the law." He added that as March marked five years after the first COVID lockdowns, an extension of the SBA and law enforcement's ability to pursue fraudsters must be realized. Fox News Digital reached out to the SBA for comment. When asked about the discrepancies found in the GAO report, an SBA spokesperson told Fox News Digital that Administrator Kelly Loeffler has already taken action to enhance fraud prevention efforts. "The SBA fully supports all efforts to crack down on fraud within its loan programs – in stark contrast to the last administration, which failed to investigate or address more than $200B in estimated pandemic-era fraud," Caitlin O'Dea said. "[SBA] will continue working to hold pandemic-era fraudsters accountable."
Yahoo
21-03-2025
- Business
- Yahoo
Former Rapids Theatre owner pleads guilty to wire and bank fraud
BUFFALO — The former owner of the Rapids Theatre has pleaded guilty to defrauding the federal government out of more than $1.8 million in Covid relief program funds. In a plea deal with federal prosecutors, Lewiston businessman John Hutchins pleaded guilty Thursday afternoon to charges of conspiracy to commit wire fraud and bank fraud during a hearing in U.S. District Court in Buffalo. Hutchins, 71, faces a maximum possible sentence of 30 years in prison and a $1 million fine. Hutchins and his co-defendant and business associate Roberto Soliman had been scheduled to stand trial in the fraud and conspiracy case in early January, but those proceedings were postponed after prosecutors filed a superseding indictment in the case in September. Shortly after the trial was delayed in early January, the presiding judge in the case, District Court Judge John Sinatra, recused himself from the proceedings. He was replaced by District Court Judge Meredith Vacca who further delayed and rescheduled a number of pre-trial hearings in the case. On March 12, a filing with the federal court clerk indicated that a hearing on a plea agreement for Hutchins would be held Thursday. Charges against Soliman remain pending. The superseding indictment, filed in September, accused Hutchins and Soliman, 40, of the Falls, of stealing an additional $1 million from a pandemic relief grant program. The pair were accused of additional counts of conspiracy to commit wire fraud and bank fraud and committing wire fraud and bank fraud. Hutchins remained charged with making a false statement to the FBI and Soliman remained charged with engaging in monetary transactions with criminally derived property (money laundering). Both Hutchins and Soliman pleaded not guilty to the charges. They have been free on conditions since their indictment. The superseding indictment added charges that accused Hutchins and Soliman of filing fraudulent applications for the Shuttered Venue Operators Grant (SVOG) program. The grants available under that program were designed to provide emergency financial assistance as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venuses Act (Economic Aid Act). According to the indictment, 'the purpose of the SVOG program was to support the ongoing operations of eligible live-event venues (like the Rapids Theatre) and operators affected by the disruptions caused by the COVID-19 pandemic.' Eligible applicants could qualify for grants equal to 45% of their gross earned revenue. Grants were capped at no more than $10 million. SVOG funds could be used for specific expenses, including payroll, rent and utilities. In the original indictment, Hutchins and Soliman, the former chief financial officer of Hutchins' companies, were accused of defrauding two Covid-related loan programs out of more than $750,000. They were indicted on those charges in March 2022. Prosecutors charge that Hutchins and Soliman applied for the SVOG grant in April 2021, at a time when they knew they were being investigated by the FBI for ripping off the loan programs. The prosecutors charged Hutchins and Soliman used an unindicted co-conspirator, identified in court papers only as the Rapids Theatre vice president, to hide their involvement in the grant application. Federal officials with the U.S. Small Business Administration ultimately authorized a pair of grants, totaling roughly $1 million, to be awarded to the Rapids. When the SBA sought an accounting of the grant funds, Hutchins sent them a letter saying he never authorized the grant application. Federal prosecutors accused Hutchins and Soliman, in their original indictment, of filing fraudulent loan applications under both the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). Those loans were designed to provide emergency financial assistance as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Hutchins and Soliman applied for loans for the Rapids Theatre, Bear Creek Entertainment LLC, a resort and conference center, Hutch Enterprises LLC, the Hutchins Agency LLC and CWE Entertainment, Corp. CWE is owned and controlled by Soliman, while the other businesses are owned by Hutchins. Between March and August 2020, prosecutors said Hutchins and Soliman received four Economic Injury Disaster Loans totaling $749,500.00. The indictment against them charges that Hutchins and Soliman submitted false revenue and expense figures for the businesses to support their loan applications. Federal investigators with the FBI and IRS said Hutchins and Soliman used the loan proceeds, not for their businesses but for their own personal expenses. Hutchins is accused of making payments on residential properties in North Tonawanda and Lewiston, on a 2020 BMW and a 2020 Cadillac, as well as paying homeowner association fees on a Florida condominium. Hutchins and Soliman also applied for and received a Paycheck Protection Program loan totaling $74,838. In November 2020, Hutchins was accused of making false statements to FBI special agents and to an investigator in the U.S. Attorney's Office. In those statements, Hutchins reportedly denied applying for, or authorizing anyone to apply for, any Economic Injury Disaster Loans or Paycheck Protection Program loans. The businessman later claimed that he may have made or authorized a PPP loan application for the Rapids Theatre. Federal investigators claim that Hutchins used Soliman, who was, at that time, the chief financial officer for the Rapids Theatre, to launder the loan money to pay personal expenses.
Yahoo
20-03-2025
- Business
- Yahoo
Former Rapids Theatre owner pleads guilty to $1.8 million in COVID relief fraud
BUFFALO, N.Y. (WIVB) — The former owner of the Rapids Theatre pleaded guilty to two counts of fraud after receiving more than $1.8 million in COVID-19 relief funds from fraudulent loan applications, the United States District Attorney's Office announced. John L. Hutchins, of Lewiston, pleaded guilty to conspiracy to commit wire fraud and bank fraud. He faces a maximum of 30 years in prison and a fine that could reach $1 million. According to the United States District Attorney's Office, Hutchins and co-defendant Roberto Soliman filed fraudulent loan applications with the Economic Injury Disaster Loan Program (EIDL), the Paycheck Protection Program (PPP) and the Shuttered Venue Operators Grant (SVOG). Between March and August 2020, Hutchins and Soliman received the following loans: Five Economic Injury Disaster loans adding up to $779,500 SVOG loans adding up to $989,905 PPP loans adding up to $115,978 Hutchins and Soliman submitted false accounting figures on the loan applications, the United States District Attorney's Office said. The City of Niagara Falls bought the Rapids Theatre out of foreclosure in November, according to Buffalo Business First. The theater, originally known as Shea's Bellevue Theatre, opened in 1921. After several different iterations over the decades, it reopened as a rock music venue in 2004 as The Dome Theatre before becoming The Rapids Theatre in 2009. Bands such as Stone Temple Pilots, The Deftones and Our Lady Peace played shows during its time as The Rapids Theatre. Charges are pending against Soliman, the United States District Attorney's Office said. *** Mark Ludwiczak joined the News 4 team in 2024. He is a veteran journalist with two decades of experience in Buffalo. You can follow him online at @marklud12. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
