A Baltimore man faces federal charges for allegedly filing fraudulent aid loan applications and stealing the identity of a tax preparer.
Baltimore Man Sued Over Charges That He Forged PPP Loan And EIDL Loan Application
The 37-year-old defendant, Dana Lamar Antonio Hayes Jr., is alleged to have filed false tax filings, fraudulent economic emergency loan applications and CARES Act credit applications for paycheck programs on behalf of his recently revived company. The federal grand jury reversed charges on federal charges of wire fraud, money laundering and aggravated identity theft.
Unsealed Charge Returned
The six-count indictment said Hayes had made several fraudulent applications for a disaster relief loan for economic injury (EIDL loan) between March 2020 and October 2021. He has also filed several Paycheck Protection Plan (PPS) loan applications with the Small Business Administration (SBA) and two financial institutions listed as unnamed banks.
The charges were announced by Erek L. Barron, the United States Attorney for the District of Maryland, along with FBI Special Agents Thomas J. Sobocinski and IRS Darrell J. Waldon.
Accused of ‘frequently contacted the SBA’ for loan approval
A statement released by the Justice Department expanded on the matter, saying: “In particular, the indictment alleges in March 2020 that Hayes filed a fraudulent EIDL loan application on behalf of his previously forfeited and recently revived company, D&L Investment Properties Inc. The EIDL loan application allegedly contained false statements about D&L’s number of employees and labor costs.
“Based on false and fraudulent information, the SBA approved Hayes’ EIDL application and Hayes made loan payments on behalf of D&L. The indictment also alleges that Hayes claimed operating expenses of $15,000 and equipment expenses of $35,000 when the company was inactive since 2019. In addition, Hayes allegedly stated in the EIDL filing that he was not on probation at the time of filing.
“As alleged in the indictment, after the SBA initially rejected Hayes’ EIDL application, he allegedly contacted the SBA regularly to have his EIDL application approved. After the application was approved and the money deposited into D&L’s bank account, Hayes allegedly transferred all loan proceeds from D&L’s bank account to his personal savings account.”
The statement also noted that the indictment alleges Hayes used the name and tax identification number of an unnamed victim to submit fraudulent bank forms without the victim’s knowledge or consent. The victim was previously hired by Hayes to prepare D&L and Hayes’ personal tax returns, but now claims they never prepared certain forms for D&L. Federal documents also indicate that such forms were never filed.
Multiple possible sentences for fraudster
Hayes faces a maximum sentence of 20 years in federal prison for wire fraud charges, plus 10 years in federal prison for money laundering. If convicted, he will also receive a mandatory two years in federal prison for aggravated identity theft, which must be served before starting another sentence.
However, federal crimes usually don’t get the maximum sentences, and the federal district court judge will use US conviction guidelines and other legal factors to determine the actual sentence.
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Image: DepositphotosMore in: EIDL Loan, PPP Loans
This post Baltimore Man Sued Over Charges That He Forged PPP Loan And EIDL Loan Application was original published at “https://smallbiztrends.com/2022/07/baltimore-man-indicted-for-ppp-and-eidl-loan-fraud.html”