It has taken several years, but federal investigators and prosecutors are still on the trail of individuals who swindled the government during the coronavirus pandemic in 2020-21.
U.S. attorneys in Oklahoma City and Muskogee joined a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration and its Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program during the COVID-19 outbreak.
From June 12 to Sept. 1, federal prosecutors across the country facilitated fraud enforcement actions against more than 160 criminal defendants, reaching approximately $245 million in intended loss to American taxpayers.
The crooks include six who were prosecuted — and pleaded guilty — in federal district courts in Oklahoma City and Muskogee. A seventh person is charged in Tulsa’s federal district court with submitting fake claims for reimbursement on COVID tests.
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns — not to line the pockets of fraudsters,” said U.S. Attorney General Todd Blanche. “The defendants charged during our summer surge are accused of fabricating businesses, submitting false payroll and revenue claims, stealing identities, and concealing foreign ties on their applications.”
Charged in Oklahoma City’s Western District federal court were:
•Leroy Sha-Ron Thompson Jr., 34, of Georgia; Emily Witty, 31, and Mark Parnell, 32, both from Texas.
From March 2021 through January 2022, the three conspired with each other and others to submit fraudulent PPP loan applications supported by false documents, including bank statements and tax records. The trio assisted in creating more than 100 fraudulent PPP loan applications.
All three pleaded guilty to conspiracy to commit wire fraud and face up to 30 years in federal prison and fines of up to $1 million at sentencing.
•Kingsley Tazinya, 40, of Oklahoma City.
Tazinya submitted to Mid-First Bank a fraudulent PPP loan application in which he falsely claimed his business had 13 employees and an average monthly payroll of more than $99,000. Based on the May 2020 fraudulent application, he obtained approximately $249,600 in PPP loan proceeds that were transferred to a bank account he controlled.
Tazinya pleaded guilty to bank fraud and was sentenced to 20 months in federal prison and was ordered to pay $564,500 in restitution.
•Olabode Nurudeen Jimoh, 54, of Yukon.
Beginning in April 2020, Jimoh submitted fraudulent applications for one Economic Injury Disaster Loan and five PPP loans by making false statements about his businesses’ income, payroll, and number of employees, and falsely certifying that the proceeds would be used for authorized business purposes. Jimoh fraudulently obtained $484,266 in EIDL and PPP loan proceeds, which he used instead for personal expenses.
Jimoh pleaded guilty to wire fraud and was sentenced to 12 months and one day in federal prison and was ordered to pay $484,266 in restitution.
“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.”
In the Eastern Oklahoma District federal court:
•William Chad Heard, 45, of Konawa, pleaded guilty to one count of wire fraud, punishable by up to 30 years in prison and a $1 million fine. He remains free on bond pending sentencing.
From approximately April 2020 and continuing through about August 2021, Heard electronically submitted false and fraudulent PPP loan applications, created false payroll records and IRS tax reporting forms, and included the records and forms in PPP loan applications on behalf of himself, others, and existing and nonexistent businesses.
The fraudulent PPP loan applications were submitted to the Small Business Administration and to lenders inside and outside Oklahoma.
Heard also used personal identifying information of other persons to apply for and receive PPP loans. In total, Heard’s fraudulent loan applications resulted in more than $350,000 in loan proceeds being paid out.
The charge arose from an investigation by IRS-Criminal Investigations, the U.S. Secret Service, and the Oklahoma Bureau of Narcotics and Dangerous Drugs Control.
“The passage of time does not diminish our commitment to accountability,” said SBA Inspector General William Kirk.
Monday’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity.
“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 sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over.”
In Tulsa, Northern Oklahoma District U.S. Attorney Clint Johnson announced a criminal charge and a civil complaint earlier this year in connection with an alleged scheme to defraud Medicare and Medicaid.
•Jeremy Michael Bowles, 41, of Bixby, was indicted on 16 counts of health care fraud.
Court documents allege Bowles was the operator of three pharmacies and submitted the false billings on behalf of those pharmacies, which he controlled. In doing so, Bowles is accused of attempting to defraud Medicare and Medicaid by submitting false claims for reimbursement for COVID-19 tests.