Yesterday, September 6th,, Yves Montima, 55, was sentenced to three years of supervised release, with the first 10 months to be served in home confinement for his participation in a bank fraud scheme related to COVID-19 pandemic assistance, according to the Department of Justice (DOJ). Montima was also ordered to pay $239,595 in restitution. In November 2021, he had pleaded guilty to one count of conspiracy to commit bank fraud.
The fraud scheme involved obtaining over $220,000 in proceeds through fraudulent Paycheck Protection Program (PPP) loan applications submitted between April 2020 and April 2021. Montima and his co-conspirator submitted 12 fraudulent loan applications, both in their own names and in the names of others, at several financial institutions. The duo also received kickback payments from individuals on whose behalf they submitted the false applications, as stated in the press release.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) had established the PPP to provide temporary loans to small businesses and independent contractors to combat the economic fallout of the pandemic. These loans could be forgiven if used for approved purposes, such as payroll expenses. Private financial institutions processed these loans, and the U.S. Small Business Administration guaranteed them.
The case of Montima reveals the ongoing struggle to combat and prevent pandemic-related fraud. To address this issue, the Attorney General established the COVID-19 Fraud Enforcement Task Force on May 17, 2021. The Task Force aims to enhance enforcement efforts by partnering with agencies across the government, identifying resources and techniques to help uncover fraudulent schemes, and sharing information gleaned from prior investigations. The response by the Task Force in relation to this case indicates their commitment to mitigating the damage caused by these fraudulent activities.
In response to allegations of continued COVID-19-related fraud attempts, the Department of Justice encourages individuals to report any suspicious activities by calling the National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or submitting a complaint via the NCDF Web Complaint Form.
