3 Metro Detroiters, 19 more indicted in $ 11 million COVID payment protection fraud program

Three residents of Detroit Metro and 19 others across the country have been charged in an $ 11 million fraud scheme focused on COVID-19 paycheck protection loans for businesses, the federal government said.

In a press release from the United States Department of Justice, residents of Warren, Rochester Hills and Macomb were mentioned among the 24 people involved in the project.

How the diet worked

According to federal authorities, a large group of people worked to steal an estimated $ 11.1 million from the Paycheck Protection Program and use that money to buy luxury vehicles, jewelry and other personal items.

Between May 2020 and August 2020, these people submitted or helped others submit P3 loan applications on behalf of 14 companies, according to the federal government. They requested loans of around $ 800,000 for each business, officials said.

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In those claims, the defendants certified that the companies were in operation on February 15, 2020, and were paying salaries and payroll taxes for employees or independent contractors, the statement said.

The demands indicated that federal funds would be used to retain workers, maintain payroll or make mortgage, rental and utility interest payments during the pandemic, authorities said.

Officials said each company reported having around 60 employees and around $ 300,000 in average monthly salary expenses. The people who sent the claims used fraudulent IRS Form 941 documents, which are used to report payroll taxes, authorities said.

After the money was deposited into each corporate account, it was distributed to those involved in the program, officials said. They would conceal the origin of the funds and how they were spent, according to court records.

The money was used to buy luxury goods, two Range Rovers, an Acura NSX and a Mercedes Benz S-Class S65 AMG, among others, federal officials report.

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18 people in charge

Federal officials recently charged 18 people in connection with the case.

Of those 18 people, 14 were indicted in a first replacement indictment that was unsealed on July 14. Here are those 14 people:

Ricky Dixon, 52, from Warren, Michigan, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, misrepresentation to a federally insured financial institution, aggravated identity theft and money laundering in connection with his involvement in the loan obtained by his company, RK Painting Co., and several other business loans.

Meghan Thomas, 32, of Alpharetta, Ga., Is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud and misrepresentation to a federally insured financial institution in as part of his involvement in several business loans.

Jesika Blakely, 34, of Atlanta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, misrepresentation to a federally insured financial institution and money laundering in connection with its involvement in several business loans.

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Amanda Christian, 33, of Blythewood, South Carolina, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud and misrepresentation to a government insured financial institution federal in relation to his involvement in the loan obtained by his company, Advertising and Then Some Inc., and several other business loans.

Dwan Ashong, aka Dwan Gilpin, 40, of Jacksonville, Fla., Is charged with conspiracy to commit wire fraud, wire fraud and money laundering in connection with his involvement in multiple business loans.

John Gaines, aka Marty Gaines, 56, of Marietta, Ga., Is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, misrepresentation to a financial institution insured by the federal government and money laundering in connection with the loan obtained by Gaines Reservation and Travel.

Charles Petty, aka Charles Knight, 48, of Atlanta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, misrepresentation to a financial institution insured by the federal government and money laundering in connection with the loan obtained by Transport Management Services Inc.

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Jerry Baptiste, 43, of College Park, Ga., Is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, misrepresentation to a federally insured financial institution and money laundering in connection with the loan obtained by Transportation Management Services Inc.

Derek Parker, 56, of Rochester Hills, Michigan, is charged with conspiracy to commit electronic fraud, electronic fraud and money laundering in connection with the loan obtained by his company, D Parker Holdings Inc.

David Belgrave II, 49, of Lexington, South Carolina, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, misrepresentation to federally insured financial institution and money laundering in connection with the loan obtained by his company, Continuing Success Inc.

Charles Hill IV, 45, of Norcross, Ga., Is charged with conspiracy to commit wire fraud, wire fraud and money laundering in connection with a loan obtained by his company, Infinite Education Services Inc.

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Ryan Whittley, 35, of South Holland, Illinois, is charged with conspiracy to commit wire fraud, wire fraud and money laundering in connection with the loan obtained by his company, ML Exotic Customs Inc.

El Hadj Sall, 39, of Jacksonville, Fla., Is charged with conspiracy to commit wire fraud, wire fraud and money laundering in connection with the loan obtained by his company, Bellevie Corp.

Rick McDuffie, 50, of Little Rock, South Carolina, is charged with conspiracy to commit wire fraud and wire fraud in connection with the loan obtained by his company, Mickies Auto and Tire LLC.

Three other people were charged with criminal intelligence. Here are their names:

Teldrin Foster, 39, of Decatur, Ga., Is charged with conspiracy to commit wire fraud in connection with loan obtained by Bellator Phront Group Inc.

Denesseria Slaton, 52, of Stockbridge, Ga., Is charged with conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc.

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Charmaine Redding, 27, from Macomb, Michigan, is charged with conspiracy to commit electronic fraud in connection with the loan obtained by his company, All Star Room and Board Services of Michigan Inc.

Another accused, Carla Jackson, 53, of Tucker, Georgia, had previously been indicted on August 4, 2020, for money laundering in connection with the laundering of proceeds from the PPP loan from Gaines Reservation and Travel. .

If found guilty, these individuals face a maximum sentence of 20 years in prison for wire fraud and money laundering and a maximum of 30 years for bank fraud and misrepresentation at federally insured bank charges.

Dixon also faces an additional two-year sentence for aggravated identity theft.

A federal district court judge will determine any sentence after taking into account US sentencing guidelines and other statutory factors.

The brain pleads guilty

Six of those involved have already pleaded guilty since the original indictment was handed down on August 4, officials said.

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Among them is Darrell Thomas, 35, of Duluth, Georgia – the man believed to be the mastermind of the scheme.

Darrell Thomas pleaded guilty on June 16 to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering.

As part of his guilty plea, Darrell Thomas admitted his involvement in fraudulent conduct totaling over $ 14.7 million, including approximately $ 11.2 million in fraudulent PPP loans, over $ 1.15 million in fraudulent economic disaster loans; and over $ 2.4 million in fraudulent auto loans. .

Officials said he also agreed to give up various assets, including more than $ 2.1 million in seized funds, three luxury vehicles – a 2018 Mercedes-Benz S-Class S65AMG, a 2018 Land Rover Range Rover and a 2017 Acura NSX – and several jewels, including a gold Rolex.

His sentence is set for September 15.

5 plead guilty

Slaton pleaded guilty on June 16 to one count of conspiracy to commit bank fraud in connection with the loan obtained by Transportation Management Services Inc. Slaton’s sentencing is set for October 6.

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Khalil Gibran Green Sr., 47, of Cleveland, Ohio, pleaded guilty on September 1 to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his company, Impact Creations LLC.

On January 14, Judge JP Boulee sentenced Green to three years and five months in prison and five years on probation, and ordered him to pay $ 830,000 in restitution and forfeiture of $ 157,035.71.

Bern Benoit, 45, of Burbank, Calif., Pleaded guilty on March 11 to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his company, Transportation Management Services Inc. Benoit’s sentencing is set for September 8. .

Redness pleaded guilty on July 14 to one count of conspiracy to commit electronic fraud in connection with the loan obtained by his company, Michigan Inc All Star Room & Board Services. Redding’s sentencing is set for October 21.

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Andre Lee Gaines, 67, of Dallas, Ga., Pleaded guilty on June 17 to one count of making false statements to the FBI in connection with the loan obtained by his company, Gaines Reservation and Travel. The sentence of André Gaines is set for October 6.