South Florida continues to be a nationwide chief in prosecuting COVID-19 aid fraud, charging 17 people over the summer time for schemes involving over $21 million.
These instances are a part of ongoing efforts by the U.S. Legal professional’s Workplace for the Southern District of Florida, which has charged greater than 185 individuals for the reason that pandemic started, with fraudulent schemes totaling round $220 million.
Main one of many nation’s three COVID-19 Fraud Strike Power Groups, the Southern District of Florida stays a key participant in combating pandemic-related fraud. U.S. Legal professional Markenzy Lapointe reiterated their dedication to holding wrongdoers accountable, stating, “We won’t permit restricted federal tax {dollars}, which have been supposed to assist small companies throughout the pandemic, to be stolen to assist legal actors.”
Instances towards federal staff
Amongst these charged is Malaina Chapman, 37, of Hialeah, a former Small Enterprise Administration (SBA) worker. Chapman was indicted in July 2024 for her involvement in defrauding each the Paycheck Safety Program (PPP) and Financial Damage Catastrophe Mortgage (EIDL) program, in addition to a number of state and native lease help applications. Authorities allege that Chapman took benefit of her place on the SBA to govern aid purposes and funnel funds for private achieve.
Instances towards COVID-19 mortgage preparers
A number of people concerned in making ready fraudulent mortgage purposes have additionally been charged.
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One such defendant is Pete Andrew Cohen, 56, of Miramar, who ran a tax preparation enterprise. Cohen was charged for his function in submitting roughly $3 million price of fraudulent PPP mortgage purposes from June 2020 to June 2021. Prosecutors allege that Cohen inflated payroll information and worker numbers for mortgage candidates, arranging for faux payroll paperwork to be submitted by way of a payroll service. Cohen has pled responsible and is ready to be sentenced on October 17.
Equally, Marc Prince, 41, additionally of Miramar, allegedly ready round $3 million in fraudulent PPP mortgage purposes between June 2020 and April 2021. Prince reportedly charged enterprise homeowners a price of as much as 20 p.c of the mortgage’s worth in alternate for submitting false claims, inflating each worker numbers and payroll figures. Prince has additionally pled responsible and shall be sentenced on October 17.
These instances, investigated by businesses together with the Inside Income Service Prison Investigation (IRS-CI), Federal Deposit Insurance coverage Company Workplace of Inspector Basic (FDIC-OIG), and Homeland Safety Investigations (HSI), are a part of a wider effort to root out fraud and return stolen funds to taxpayers.
