Mon. Feb 6th, 2023

The Division of Justice mentioned the 2 enterprise house owners stole the funds via the federal Paycheck Safety Program.

MEMPHIS, Tenn. — A federal grand jury has indicted two Memphis enterprise house owners with stealing $786,000 in federal COVID-19 reduction funds, U.S. Lawyer Kevin Ritz introduced Friday.

Lisa Evans, 40, of Olive Department, Mississippi, proprietor of USA Taxes in Memphis, and Kevin Shaw, 33, of Memphis, proprietor of Freight Masters, Inc., are charged with conspiring to commit financial institution fraud and making false statements to a federally insured financial institution. 

In line with the indictment, the Paycheck Safety Program (PPP) was a federal program administered by the Small Enterprise Administration designed to offer emergency monetary help to small companies affected by the COVID-19 pandemic. 

The quantity of a PPP mortgage {that a} small enterprise could have been entitled to was decided by the variety of workers and quantity of payroll the enterprise had. Evans and Shaw are alleged to have submitted a fraudulent PPP utility for Shaw’s enterprise, Freight Grasp’s Group Inc., to a financial institution taking part within the PPP program. 

Evans is alleged to have offered Shaw with faux IRS paperwork to assist his fraudulent utility after which taking a kickback/payment from Shaw after Shaw obtained the $786,202 in mortgage proceeds.

These offenses every carry a most penalty of 30 years in jail and a most high-quality of $1,000,000.  

“These federal assist packages had been designed to elevate hardworking residents and small companies in a time of want,” Ritz mentioned. “However, because the indictment alleges, these people sought to defraud the help packages. Because of our companions for investigating these offenses. We are going to proceed to prosecute those that abuse and misuse COVID-19 reduction funds.” 

“The Treasury Inspector Common for Tax Administration aggressively pursues those that try and abuse the Coronavirus Support, Reduction, and Financial Safety Act and its Paycheck Safety Program, which was created to help reliable enterprise house owners through the pandemic,” mentioned J. Russell George, the Treasury Inspector Common for Tax Administration. 

 The case was investigated by particular brokers with 5 totally different federal companies – U.S. Secret Service, Federal Deposit Insurance coverage Company (FDIC), Workplace of Inspector Common, Small Enterprise Administration (SBA) Workplace of Inspector Common, U.S. Treasury Inspector Common for Tax Administration (TIGTA), and the Federal Housing Finance Company.

Leave a Reply

Your email address will not be published. Required fields are marked *