Andre Shammas, the owner of San Diego's Shammas Funding Inc., has entered a guilty plea to fraud charges. As reported by the U.S. Attorney's Office, he admitted to fabricating applications to secure over $5 million in Paycheck Protection Program (PPP) loans during the pandemic. These loans were a critical part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, intended to support businesses faced with economic hardships brought on by COVID-19.
Exploiting his role as an accountant and tax preparer, Shammas arranged more than 40 fraudulent loan requests through Shammas Funding. The Justice Department's release clarified that he recruited clients, generating bogus documentation to back the loan applications. Driven by the supposed need to keep businesses and their employees economically afloat, the loans would be forgiven if used properly for payroll and other qualified business expenses—meanwhile, Shammas was lining his pockets.
Among the fraudulent applications was one on behalf of Nasser Salman and LGDG, resulting in $85,000 in PPP loans. Another fictitious claim made by Rafael Santiago and Blacktie Co-Investors, Inc., brought in $117,233, while Wendell Pialet's Hope Nuggets, LLC benefited from a fraudulent application to the tune of $100,000. These applications contained false information about the number of employees, payroll expenses, and gross receipts to induce the approval of the loans.
Shammas is scheduled to be sentenced on November 18 at 9 a.m. before U.S. District Judge Thomas Whelan.
