A Massachusetts man is facing Federal charges after investigators say he attempted to obtain over $13 million in forgivable Paycheck Protection Program (PPP) loans from the Small Business Administration (SBA) authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The 38-year-old man is the president of an information technology firm in Winchester, Massachusetts. Investigators say he submitted several fraudulent applications this year from April through June. The allegedly fraudulent documents sought over $13 million in PPP loans from SBA-approved lenders by misstating the number of employees his firm had. He also allegedly indicated that these employees were based in the United States, but investigators discovered that they were in fact based overseas.
Prosecutors say the defendant received $2 million in loans before the government caught on to the alleged fraud. Of that, federal agents have recovered all but $20,000 from the defendant’s business bank account.
The defendant was charged in the District of Massachusetts federal court and was scheduled to be arraigned on a charge of wire fraud last week.