If you’re googling Paycheck Protection Program (PPP) loan fraud, you’ll be surprised by the multitude of results. These frauds have skyrocketed over the past 2 years. Wherever there is money available, there are also scammers looking for an easy buck. Therefore, with so many funds made available for businesses through PPP loans, fraudsters had plenty of opportunities.

PPP loan fraud has become so common and popular that there are even jokes about it on social media. However, this matter is far more than a subject of ridicule. Things are more than serious. Fraudsters managed to grab the money that was meant to help businesses stay afloat in the pandemic. What is even more worrying is the authorities’ inability to contain the situation.

There have been countless stories of fraudsters who made thousands and even millions of dollars in PPP scams. Here are just a few of the most notorious PPP loan Frauds. 

Read more here: What Are Phishing Scams and How to Avoid Them

Julio Lugo and Rosenide Venant

These are the real names of two scammers who managed to make a fortune by stealing PPP funds. Not only did the two make lots of illicit gains but also bragged about it. Therefore, they made it easier for the authorities to catch them.

The story of the couple made headlines. It even resembles that of notorious criminal lovers you see in action movies. After stealing PPP loan funds through fake applications, the two couldn’t keep a low profile. Although this is the basic rule to follow in the aftermath of a successful theft.

Instead, Lugo and Venant purchased luxury goods. They bought an expensive car and withdrew more than $300,000 in cash. Moreover, they used around $13,000 in weight-loss centers. Additionally, they spent over $60,000 gambling at a casino.

Yet, this is not the cherry on top of the cake. The two recorded a video in a Florida hotel room. This video boasted their illicit gains. $100 bills covered the whole place. Moreover, Louis Vuitton bags laid on the floor. The material was too good a piece to keep to themselves. So, the couple decided to share it with everyone on Facebook. 

The Consequences 

Authorities quickly spotted the lavish expenses. Investigations began and their results were striking. The couple made more than 70 fraudulent PPP loan applications. In total, they received almost $6 million as PPP and EIDL funding. The maximum sentence for them is 45 years in Federal Prison for Lugo and 35 for Venant. 

Rudolph Brooks Jr

It’s hard to picture a pastor as a fraudster. However, Brooks proved to be one. Moreover, he wasn’t the only man of God in recent history to commit fraud. Brooks worked in Washington DC as a pastor at the Kingdom Tabernacle of Restoration Ministries. 

Besides his passion and devotion for the Righteous One, Rudolph had more mundane affinities too. One of them was luxury cars. With the money he illegally obtained from the PPP loan program, he purchased 39 vehicles. And some of them were quite stylish and expensive too. 

How did he do it? Well, he claimed to be the owner of a company – Cars Direct. Through this ghost company, he applied for PPP loans. We call it a ghost company because Cars Direct wasn’t ‘alive’ anymore. The company only operated between 2010 and 2012. 

However, the faithful man managed to bring it back to life at the right time. He revived it in 2020. Then, using fraudulent tax forms, he applied for $1.5 million. After he got the money, he transferred it to his account. Finally, he started spending it recklessly. 

The Consequences

After he applied for additional loans, the authorities arrested Brooks. Consequently, they could also seize more than $2 million from several of his bank accounts. The maximum sentence in his case is 20 years of imprisonment. 

Latoya Stanley and Johny Philus

Another successful couple from Florida made almost $1 million from PPP and Economic Injury Disaster Loans (EIDL) funds. The two claimed to own different businesses. One was a farming business, the others a car leasing and a beauty supply company. 

The two made fraudulent applications for loans and PPP funds. To support their fake applications, they claimed they had employees … many. Allegedly, Latoya’s beauty business had 18 employees. Philus claimed his car leasing company had 20. Additionally, their farm theoretically had 5 employees too. Moreover, the two reported fake income data 

With so many mouths to feed, the two hoped for lavish loans. And by applying both for PPP and EIDL loans, they managed to make a small fortune. Overall, the couple received almost $1 million. $800,000 came as PPP loans. The remaining $200,000 took the form of EIDL funding. 

The Consequences

As you might assume, none of the applicants’ employees actually existed. The two simply provided fake data. The authorities caught them and during their trial, they both pleaded guilty. Stanley was sentenced to 18 months in prison and Philus to 30. 

The Bottom Line

Lies have short legs. Sooner or later many fraudsters end up in prison. Moreover, with the support of citizens, caching them can be easier. Therefore, if you have valid reasons to believe someone commits fraud, let the authorities know.

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