A New Orleans man has been indicted on charges related to fraud and money laundering under the CARES Act, Acting U.S. Attorney Michael M. Simpson announced. The individual, Irvin C. Francois, III, 53, allegedly made false statements to obtain a Paycheck Protection Program loan totaling approximately $144,790, which he then allegedly laundered by purchasing a vehicle.
The U.S. Attorney’s Office detailed that Francois is accused of seeking the loan on behalf of his business on or around March 24, 2021. The CARES Act was signed into law on March 27, 2020, provided emergency assistance, including the PPP loans intended to support small businesses during the COVID-19 pandemic. Acting U.S. Attorney Simpson, emphasized that an indictment is merely a charge and that "the guilt of the defendant must be proven beyond a reasonable doubt."
If convicted of the charges, Francois could face up to five years in prison for the false statement count, and up to ten years for the money laundering count, each carrying the possibility of up to $250,000 in fines, three years of supervised release, and a $100 mandatory special assessment fee. The Department of Justice has a standing invitation to the public to report any suspected fraud involving COVID-19 by calling the National Center for Disaster Fraud (NCDF) Hotline or via the NCDF Web Complaint Form.
An agent from the Pandemic Response Accountability Committee (PRAC) Fraud Task Force led the investigation into Francois’s case. The PRAC was established to promote transparency and ensure the proper use of the funds dispersed in the wake of the pandemic, amounting to more than $5 trillion. This task force, which combines agents from 15 Inspectors General, has been granted extended authority to investigate pandemic-related fraud and access to specialised tools and training. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is handling the prosecution, while acknowledgments were made to the PRAC, and notably the collaboration between the U.S. Department of Veterans Affairs - Office of Inspector General and the Internal Revenue Service - Criminal Investigation.
