A Shelby Township man was handed a three-year prison sentence for his part in a scheme to fraudulently siphon millions from the federal Paycheck Protection Program (PPP). The U.S. Attorney's Office for the Eastern District of Michigan revealed that Samer Kammo, age 46, pleaded guilty to charges of wire fraud and bank fraud. Kammo, along with his co-defendants, was involved in submitting falsified PPP loan applications for various businesses, falsely inflating their payroll expenses and misrepresenting their need for relief funds intended to aid businesses during the economic hardship induced by COVID-19.
According to the announcement by United States Attorney Jerome F. Gorgon Jr., alongside representatives from the FBI and Homeland Security Investigations (HSI), this sentence aims to send a strong message that exploiting government relief programs will not be tolerated. Special Agent Jennifer Runyan stated, "If you abuse government programs for personal gain, you will be found, and you will face serious consequences under the law."
The fraudulent scheme orchestrated by Kammo and his accomplices effectively misappropriated nearly $2.5 million in PPP loan funds, which were to be used strictly for permissible business-related purposes as per the program's guidelines. However, the defendants went so far as to create and submit fake payroll, health insurance, bank, and tax records to support their illegitimate applications. Notably, the fraud also involved the misuse of personal identifying information from Kammo's family members, including his mother, according to the U.S. Attorney's Office for the Eastern District of Michigan.
Additional information disclosed by the Justice Department reveals that Kammo was no stranger to legal trouble; he had previously been sentenced to federal prison for drug dealings at his parents' liquor store. This latest conviction includes a mandate for Kammo to pay back $2,493,348.50 in restitution. While Kammo has received his sentence, the case continues for co-defendant Christina Anasi, Kammo's wife, who awaits her sentencing. Rita Shaba, another co-defendant, has already been sentenced to 27 months in prison.
The case was investigated by both the FBI and HSI, with additional support from the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity. Assistant United States Attorney Andrew J. Yahkind took on the role of prosecutor, with Assistant United States Attorney Jessica Nathan handling related forfeiture and restitution matters. As the aftermath of the pandemic lingers on, agencies remain vigilant and resolute to actively hold accountable those who have taken advantage of the systems put in place to help during unprecedented times, according to the U.S. Attorney's Office for the Eastern District of Michigan.
