Federal prosecutors in Oklahoma say two people have been sentenced after a nationwide crackdown on alleged fraud via the Small Business Administration’s Paycheck Protection Program.
“Pandemic loan relief was intended to keep American small companies open during government lockdowns, not to enrich crooks. Attorney General Todd Blanche stated, “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications—but they will now be prosecuted to the fullest extent of the law.”
From June 12 to September 1, federal prosecutors targeted 160 people accused of defrauding the country, resulting in an estimated $245 million in intentional losses to American taxpayers.
“Today’s statement marks the largest-ever action against SBA fraudsters, with 870,000 suspended borrowers linked to $39 billion in suspected fraudulent PPP and COVID EIDL activity.” In collaboration with Vise President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to support small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters sent to suspected fraudsters, we’re delivering a clear message that they must repay their debts or face Treasury collections and potential federal law enforcement. Under this administration, the free ride is ended. We are restoring accountability, reclaiming taxpayer cash, and ensuring that SBA programs continue to benefit legitimate small companies.”
In Oklahoma, prosecutors charged two people with submitting fake applications to obtain federal cash.
Olabode Nurudeen Jimoh, 54, of Yukon, pled guilty to wire fraud and was sentenced to 12 months and one day in federal prison with a restitution order of $484,266. In April 2020, Jimoh made fraudulent applications for one EIDL and five PPP loans by making false assertions regarding his company’s income, payroll, and employees. As a result, he received $484,266, which he spent on personal expenses.
In May 2020, officials say 40-year-old Kingsley Tazinya of Oklahoma City submitted a fake PPP loan application to MidFirst Bank, claiming his company had 13 employees and an average monthly salary of more than $99,000. Based on the bogus application, he received $249,600 in PPP loan proceeds. He pled guilty to bank fraud and was sentenced to 20 months in federal prison and $564,500 in compensation.
“Those who exploited pandemic relief programs stole resources intended for legitimate businesses struggling to keep their doors open,” said U.S. Attorney Robert J. Troester. “The cases brought in the Western District of Oklahoma demonstrate that fraud committed years ago will not simply be forgotten. Our office will continue to follow the evidence, pursue those who abused these programs, and seek justice on behalf of the American taxpayers who funded them.”
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