Across the country, the US Department of Justice had indicted until mid-June nearly 600 accused of fraud offenses associated with PPP and EIDL. The US Government Accountability Office reported in April that financial institutions had filed 21,000 reports of PPP-related suspicious activity with the Financial Crimes Enforcement Network. The SBA made or guaranteed 18.7 million loans between the two programs for a combined amount of $ 968 billion, according to the GAO report.
The causes of fraud prosecuted in the United States District Court for the Western District of New York include:
â¢ Michael Kornaker of North Tonawanda, who had previously been convicted of a felony of fraud, filed for EIDL in June 2020, shortly after being released from prison. Kornaker used the name and personal information of a relative who was unaware of the scheme and listed a Florida towing company on his request, according to a complaint filed last September. Kornaker received $ 60,400 from the loan program.
â¢ Great Valley man Adam D. Arena bought two SUVs after securing nearly $ 1 million in P3s for a company that prosecutors said was no longer in business. Arena, 44, and another defendant, Amanda J. Gloria, 44, of Altus, Oklahoma, allegedly submitted false federal income tax returns, including documents claiming an auto sales company employed 50 people, to a bank to guarantee the loan. But investigators said they found evidence that the company, ADA Auto Group, was inactive from 2018 to May 2020.