The U.S. Attorney's Office for the Southern District of Florida has delivered a swift response to the individuals accused of exploiting federal aid programs during the COVID-19 pandemic. As reported yesterday by the U.S. Attorney's Office, 17 people faced charges over the summer for alleged involvement in fraud schemes totaling more than $21 million. These schemes targeted the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL) program, and other relief efforts designed to support individuals and businesses during the pandemic. This action underscores the persistent vigilance of federal authorities against fraud in wake of the global health crisis.
In one case, former SBA employee Malaina Chapman stands accused of participating in multiple fraud schemes. The indictment alleges malfeasance in her dealings with the PPP and EIDL initiatives as well as local credit unions and other assistance programs. Revelations of such schemes come amidst ongoing efforts by the Justice Department's COVID-19 Fraud Enforcement Task Force, which was established in 2021. The task force, helmed by the Southern District of Florida’s office, works alongside various law enforcement partners to uncover and prosecute individuals exploiting pandemic relief efforts. According to a statement by U.S. Attorney Markenzy Lapointe, action is taken "regardless of their role in the community."
Fraud is also far-reaching beyond federal employees, with cases like U.S. v. Harold Eubanks and Myotha Francois, and U.S. v. Kenneth Dikari Stevens, Jr. and Giovanni Kymani Paul Matthews focusing on unemployment insurance fraud. Suspects reportedly used stolen identities to falsify claims for unemployment benefits from the California Employment Development Department. In response to these schemes, Special Agent in Charge Jeffrey B. Veltri of the FBI’s Miami Field Office emphasized to the U.S. Attorney's Office that "the amount of fraud we’ve seen is staggering." His statement, reflecting the gravity of the situation, signals a committed stance from federal agencies to protect public funds and chase down those who have tried to defraud relief programs.
The Southern District of Florida’s diligence extends to COVID-19 procurement fraud as well, with cases like U.S. v. Nabil Nahlah, where a man is charged with attempting to sell counterfeit PPE to the Department of Veterans Affairs. Another incident, involving Rodrigo Mera who pleaded guilty to stealing and selling stolen PPE, shows the multifaceted nature of the fraud taking place. Special Agent in Charge David Spilker with the VA OIG stated to U.S. Attorney's Office, "The VA OIG remains steadfast in our commitment to work with our law enforcement partners to ensure the integrity of VA’s vital supply chain." These statements elucidate the widespread impact of such criminal acts and the resolve of federal entities to maintain the security of the supply chain and protect public health.
Loan preparers also find themselves under scrutiny for their part in fraudulent activities. Among them, Pete Andrew Cohen and Marc Prince have pleaded guilty to facilitating fraudulent PPP loan applications amounting to millions of dollars, capitalizing on desperate businesses during trying times. Enforcement continues as IRS-CI Special Agent in Charge Matthew D. Line acknowledges the ongoing investigations, ready to hold fraudsters to account years after the enactment of the CARES Act. As the justice system wades through these cases, it becomes clear that the pursuit of justice outlives the temporary measures once deemed necessary for survival in the face of a global health emergency.
