Skip to content
Tuesday, October 03, 2023
orderrimagemarketdeli

orderrimagemarketdeli

Share Your Knowledge

  • Business & Oportunity
  • Business & Finance
  • News Business
  • SEO marketing
  • traffic finance
  • FInance
  • About Us
    • Advertise Here
    • Contact Us
    • Privacy Policy
  • Sitemap
You are Here
  • Home
  • California Man Sentenced to 11 Years for $27 Million PPP Loan Fraud
FInance

California Man Sentenced to 11 Years for $27 Million PPP Loan Fraud

July 21, 20224 min read Laverne J. Tiffany

[ad_1]

The U.S. Department of Justice said in a statement a  Southern California man has been sentenced to 11 years and three months in prison over Paycheck Protection Program (PPP) loan fraud.



California Man Sentenced for PPP Loan Fraud Scheme

Robert Benlevi, 53, of Encino received a 135-month sentence following his March conviction for bank fraud, making false statements to a financial institution, and money laundering. Benlevi had been charged for submitting 27 PPP loan applications to four banks between April and June 2020 on behalf of eight companies owned by Benlevi.

According to court documents, Benlevi sought a total of $27 million in forgivable PPP loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Benlevi sought $27 million in funding to meet expenses and received $3 million that he spent on personal expenses. This includes cash withdrawals, payments on his credit cards, and transfers to other personal and business accounts he controlled. He was also renting an oceanfront apartment in Santa Monica, the Justice Department said.

Through the fraudulent applications, Benlevi had claimed that each of his companies had 100 employees and averaged a monthly payroll of $400,000, when in fact that the companies did not have any employees or payroll expenses.

The prosecution’s evidence further showed that Benlevi also submitted fabricated IRS documents falsely stating that each of the companies had an annual payroll of $4.8 million. Based on Benlevi’s fraudulent loan applications, three of Benlevi’s companies: 1Stellar Health LLC, Bestways2 Health LLC, and Joyous-Health4U LLC obtained a total of $3 million in PPP funds.

Clamping Down of PPP Fraudsters

Through the PPP, the US government authorized over $600 billion in forgivable loans to small businesses. The loans were for job retention, and other expenses were distributed in three short rounds spread between April 2020 and May 2021. The loans can be fully forgiven if businesses spend 60% of it on payroll as well as paying interest for a mortgage, rent, and utilities. However, some businesses attempted to fraudulently obtain and use the money for purposes not meant as part of the program.

Often PPP fraud is committed through false statements, ‘loan stacking’ by applying for a PPP loan money from multiple lenders, using the loan proceeds for improper or unapproved purposes, or providing false statements during PPP loan audits or fraud investigations.

Recently a research paper at the University of Texas at Austin – Department of Finance – found that more than 15% of PPP loans or around 1.8 million of the PPP’s 11.8 million loans showed at least one indication of potential fraud.

The researchers also estimate that $76 billion in PPP loans was taken illicitly – amounting to almost 10% of the program’s budget. Fintech lenders had the highest rate of suspicious PPP loans. They were making around 29% of all PPP loans but accounted for more than half of its suspicious loans to borrowers.

COVID-19 Fraud Enforcement Task Force

In a bid to clamp down on PPP fraud, in May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force. The goal is to marshal the resources of the Department of Justice in partnership with other federal agencies to bolster efforts to combat and prevent pandemic-related fraud.

Late last year the Secret Service investigations into unemployment insurance and Paycheck Protection Program (PPP) loan fraud resulted in the seizure of more than $1.2 billion while recuperating more than $2.3 billion of fraudulently obtained funds, and the Unemployment Insurance program.

If you have any information on any attempted fraud involving COVID-19 relief you can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or through the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

For the latest, follow us on Google News.

Image: Depositphotos


More in: PPP Loans




[ad_2]

Source link

"Women'S Business Casual, Amazon Fba Business, Atlanta Business Chronicle'S, Boss Baby Back In Business, Business Administration Degree, Business Attire Women, Business Card Design, Business Cards Templates, Business Casual Dress, Business Casual Outfits, Business Checking Account, Business Credit Card, Business For Sale Near Me, Business Intelligence Platform, Business Lawyer Near Me, Business Loan Calculator, Business Name Ideas, Business Professional Women, Business Spectrum Login, California Business Entity Search, Capital One Spark Business, Carl Weber'S The Family Business, Charlotte Business Journal, Custom Business Cards, Delaware Business Search, Fl Sos Business Search, Florida Business Search, Harvard Business Publishing, Insurance For Small Business, Kelley School Of Business, Maryland Business Express, Maryland Business Search", Moo Business Cards, National Business Furniture, New York Business Search, Ohio Business Gateway, Onedrive For Business, Online Business Ideas, Paramore Misery Business, Risky Business Cast, Small Business Insurance, Spectrum Business Customer Service, Tom Cruise Risky Business, Us Small Business Administration, Verizon Wireless Business, Verizon Wireless Business Login, Virtual Business Address, What Is Business Administration, Yelp Business Login, Yelp For Business
Share
Facebook Twitter Pinterest Linkedin

Post navigation

4 Free Personal Finance Courses That Can be Done in Three Hours
Depositions in New York Attorney General Trump investigation delayed after death of Ivana Trump

Related Posts

  • Student Loan Consolidation Companies – How to Choose the Right Company For You

    September 29, 2023December 3, 2022
  • Decoding Malaysia’s Road Tax: Road Tax for 3500cc Engines, Verification, and Expiry

    September 26, 2023September 26, 2023
  • Ensure Your Online Business Success: Allocate Enough Funds for Your Online Business

    September 24, 2023December 3, 2022
October 2023
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031  
« Sep    

Archives

Recent Posts

  • Omnitrition Home Business Opportunity for Multi Level Marketers
  • THe Difference Between Digital Marketing and Social Media Marketing
  • Search Engine Marketing: Is It More Effective Than SEO?
  • Getting Ahead in the Oil and Gas Industry
  • Student Loan Consolidation Companies – How to Choose the Right Company For You

BL

Tags

"Georgia Business Search Accounting Advertising American Express Business Cards Announces Att Business Customer Service Att Business Internet Att Business Login Bad Business Codes Bank Of America Small Business Buffalo Business First Business Business Administration Jobs Business Administration Salary Business Analyst Jobs Business Card Dimensions Business Casual Female Business Casual For Women Business Casual Women Outfits Business Ideas 2021 Business Letter Example Business License California Business Name Search Business Process Reengineering company engine Enterprise Finance Financial Global Information Market Marketing News Officer Opportunity Organization Quarter Report Results Search Share Small Traffic Update

getlinko

bl

Related Article

Business & Finance

Getting Ahead in the Oil and Gas Industry

September 29, 2023December 3, 20223 min read
Business & Finance

Working Capital Financing Approaches! Make Them Work For You

September 22, 2023December 3, 20222 min read
Business & Finance

U.S. Jobs in IT Development & Finance Solely Reserved for India

September 11, 2023December 3, 20225 min read
Business & Finance

How to Attain Financial Stability in Your Business

September 10, 2023December 3, 20223 min read
orderrimagemarketdeli.com
Proudly powered by WordPress | Theme: Engage News by Candid Themes.

WhatsApp us