PHOENIX, Ariz. – An area space man was sentenced Thursday to 48 months in jail and ordered to pay over $2.2 million in restitution for fraudulently acquiring hundreds of thousands of {dollars} in Paycheck Safety Program (PPP) loans and Financial Harm Catastrophe Loans. This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Safety Investigations (HSI) assisted by the Inside Income Service Legal Investigation and the Federal Bureau of Investigation.
James Theodore Polzin, 48, of Gilbert, Arizona, pleaded responsible in October 2021.
“This defendant defrauded a program meant to help hardworking People who’ve been unfairly impacted because of this unprecedented and difficult well being disaster,” stated Scott Brown, particular agent in cost for HSI Phoenix. “HSI stays dedicated to working with our legislation enforcement companions to convey each asset to bear towards anybody who knowingly and willingly seeks to benefit from the pandemic to deceive others for their very own revenue.”
The Coronavirus Assist, Aid, and Financial Safety Act (“CARES”) is a federal legislation designed to supply emergency monetary help to the hundreds of thousands of People who’re struggling financially because of the COVID-19 pandemic. One supply of reduction offered by the CARES Act was the authorization of forgivable loans to small companies for job retention and sure different bills, together with PPP loans.
Polzin submitted materially false mortgage purposes that claimed non-existent staff and revenues for enterprise entities he owned and operated. From April 2020 to August 2020, Polzin utilized for loans totaling over $3.5 million. Polzin then used a portion of the proceeds for his personal private profit, which included buying a Porsche, a house, and stashing cash offshore.
HSI launched Operation Stolen Promise in April 2020 to guard the Homeland from the rising and evolving menace posed by COVID-19-related fraud and legal exercise. As of Could 2021, the company has seized greater than $49 million in illicit proceeds; made 281 arrests; executed over 200 search warrants and analyzed greater than 80,000 COVID-19 associated domains. Working with U.S. Customs and Border Safety, greater than 2,100 shipments of mislabeled, fraudulent, unauthorized or prohibited COVID-19 take a look at kits and different associated gadgets have been seized. For its function within the operation, HSI’s Cyber Crimes Middle applies technological, operational, and legal investigative experience, services and products to focus on the criminals and organizations making an attempt to commit cybercrimes and exploitation associated to COVID-19.
Federal legislation enforcement businesses are united in our efforts to battle towards COVID-19 fraud. HSI has recognized tricks to acknowledge and report COVID-19 fraud. In Could 2020, the Lawyer Basic established the COVID-19 Fraud Enforcement Job Power to marshal the sources of the Division of Justice in partnership with businesses throughout authorities to boost efforts to fight and stop pandemic-related fraud.
Anybody with details about allegations of tried fraud involving COVID-19 can report it by calling the Nationwide Middle for Catastrophe Fraud Hotline at 866-720-5721 or by way of the NCDF Net Grievance Kind.
This case was prosecuted by the U.S. Lawyer’s Workplace, District of Arizona.
HSI is the principal investigative arm of ICE answerable for investigating transnational crime and threats, particularly these legal organizations that exploit the worldwide infrastructure by which worldwide commerce, journey and finance transfer. HSI’s workforce of over 10,400 staff consists of greater than 7,100 particular brokers assigned to 220 cities all through the USA, and 80 abroad areas in 53 international locations. HSI’s worldwide presence represents DHS’s largest investigative legislation enforcement presence overseas and one of many largest worldwide footprints in U.S. legislation enforcement.
