DENVER – The USA Legal professional’s Workplace for the District of Colorado proclaims Lawrence Phillip Hernandez, age 58, of Littleton, was charged by info with wire fraud for taking cash, which he obtained on account of fraudulent Paycheck Safety Program (PPP) and Financial Harm Catastrophe Loans (EIDL) purposes he submitted.
On March 27, 2020, the President of the USA signed into legislation the Coronavirus Help, Reduction, and Financial Safety (CARES) Act, which offered emergency help, administered by the USA Small Enterprise Administration (SBA), to small enterprise homeowners affected by the Coronavirus (COVID-19) pandemic. The 2 major sources of funding for small companies have been the PPP and EIDL program.
In response to the data, from March 30, 2020, till March 2021, Hernandez allegedly devised and took part in a scheme to defraud the USA and two lenders and to fraudulently receive cash and property. Hernandez obtained $952,819 in mortgage and grant proceeds by his scheme to defraud, together with greater than $636,000 in PPP loans, and $316,800 from the EIDL program. He obtained the loans and grants based mostly on false representations about his companies’ gross revenues, prices of products offered, variety of staff, payroll prices, and previous spending. Hernandez additionally submitted fabricated tax and monetary paperwork for 2019. Hernandez allegedly used a portion of the funds for private bills.
Hernandez was arraigned on November 4, 2022, earlier than Justice of the Peace Choose N. Reid Neureiter.
The cost within the info is an allegation. The Defendant is presumed harmless until or till confirmed responsible.
The investigation on this case was carried out by the Federal Bureau of Investigation (FBI) Denver Division, with help from the Small Enterprise Administration-Workplace of Inspector Normal, in reference to their work on the Colorado-based EIDL Fraud Process Drive. The prosecution is being dealt with by Assistant U.S. Attorneys Craig Fansler and Rebecca Weber.
On Might 17, 2021, the Legal professional Normal established the COVID-19 Fraud Enforcement Process Drive to marshal the assets of the Division of Justice in partnership with companies throughout authorities to reinforce efforts to fight and stop pandemic-related fraud. The Process Drive bolsters efforts to analyze and prosecute probably the most culpable home and worldwide legal actors and assists companies tasked with administering reduction packages to stop fraud by, amongst different strategies, augmenting and incorporating current coordination mechanisms, figuring out assets and methods to uncover fraudulent actors and their schemes, and sharing and harnessing info and insights gained from prior enforcement efforts. For extra info on the Division’s response to the pandemic, please go to https://www.justice.gov/coronavirus.
Anybody with details about allegations of tried fraud involving COVID-19 can report it by calling the Division of Justice’s Nationwide Middle for Catastrophe Fraud (NCDF) Hotline at 866-720-5721 or by way of the NCDF Net Grievance Kind at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Case Quantity: 22-cr-318