A former deputy from the Broward Sheriff's Office, Stephanie Diane Smith, has been convicted on two counts of wire fraud related to exploiting the COVID-19 relief program, announced the U.S. Department of Justice. Smith, 53, involved in a PPP loan scam, is accused of pocketing upwards of $31,000 through false claims for her businesses, as per a local10 report.
In 2021, the 53-year-old Smith submitted loan applications stating she was the owner of "Children 1st Basketball Training" and "Agape Smith Vending," fabricating gross income figures, and manufacturing IRS tax documents to support her claims. She succeeded in having both loans forgiven, which included, both principal and interests. Her actions were part of a larger investigation that resulted in charges against 17 BSO officials, with their Sheriff Gregory Tony promising terminations, stating "If they’re being criminally charged, there’s no place for this in this organization," according to Local 10 News.
Smith's fraudulent activities were revealed during a federal court trial in Fort Lauderdale where a jury found her guilty of collecting the COVID-relief funds through falsified documentation. She currently remains free on bond, pending sentencing. With each count of wire fraud carrying a maximum sentence of 20 years, Smith's actions could land her a lengthy prison term come her sentencing, which is scheduled for May 29.
While the amount Smith and her colleagues are accused of stealing may seem modest, it speaks to a broader trend of widespread fraud in South Florida's COVID-19 relief efforts. According to Miami Herald, South Florida has become a hub for PPP loan fraud, with several individuals indicted for using relief funds to bankroll luxury cars and other extravagant personal expenses. Any offenders charged so far have faced probation and orders to repay the stolen funds. As part of his crackdown on the fraudulent activities within his force, BSO Sheriff Tony noted, "I hated to see some of the names on that list. Some of them were good officers."
When Congress initiated the PPP loan program as a part of the CARES Act, the plan was to provide distressed businesses with the necessary funds to maintain payroll and cover other legitimate costs through the pandemic. Unfortunately, the BSO cases underline a significant breach of trust, with the individuals who swore to serve and protect being the ones from whom the American public needed protection, Sheriff Tony referred to the situation as "theft from the American people," as highlighted by the Miami Herald.
