{"metadata":{"responseInfo":{"status":200},"resultset":{"count":"1","pagesize":20,"page":0},"executionTime":0.0058441162109375},"results":[{"attachment":"","body":"ALEXANDRIA, Va. \u2013 The U.S. Attorney\u2019s Office for the Eastern District of Virginia (EDVA) today announced two prosecutions as part of a nationwide enforcement action led by the Justice Department\u2019s National Fraud Enforcement Division, the Small Business Administration (SBA), and the SBA Office of Inspector General targeting fraud in the SBA\u2019s Paycheck Protection Program (PPP).EDVA was a key participant in this surge effort.\u0026nbsp;From June 12 to Sept. 1, federal prosecutors across the country facilitated fraud enforcement actions spanning over 160 criminal defendants, including approximately 80 newly charged defendants, reaching approximately $245 million dollars in intended loss to American taxpayers.\u201cPandemic loan relief was meant to keep American small businesses alive during government lockdowns\u2014not line the pockets of fraudsters,\u201d said Attorney General Todd Blanche. \u201cThe defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications\u2014 but they will now be prosecuted to the fullest extent of the law.\u201d\u201cAs the federal government was providing vital assistance to businesses impacted by a global pandemic, scammers and thieves cynically exploited that lifeline to enrich themselves,\u201d said Theophani K. Stamos, First Assistant U.S. Attorney for EDVA. \u201cWe will continue working with our law enforcement partners to prosecute these economic parasites and recover the taxpayer funding intended to buoy small businesses in a time of crisis.\u201d\u201cThis summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,\u201d said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. \u201cOur mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day\u2014standing shoulder-to-shoulder with our partners\u2014to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.\u201d\u201cToday\u2019s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we\u2019re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,\u201d said SBA Administrator Kelly Loeffler. \u201cWith demand letters going out to suspected fraudsters, we\u2019re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.\u201d\u201cOperation No Doze brings a focused and coordinated approach to pursuing fraud in SBA\u2019s pandemic relief programs,\u201d said SBA Inspector General William Kirk. \u201cBy concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.\u201dIn EDVA, First Assistant U.S. Attorney Stamos announced that three defendants were sentenced for PPP-related fraud involving approximately $2,125,000 in losses.According to court documents, Karen J. DeMatteo, 65, of Gainesville, and her business partner, Tae Young Q. Jang, 65, of Nokesville, took out over 15 PPP and EIDL loans for entities they previously owned. Some of the applicant entities were dormant and no longer conducted business at the time of the applications. Jang and DeMatteo inflated the number of employees, payroll costs, and gross revenues associated with each applicant entity. Moreover, Jang and DeMatteo reported different payroll and revenue amounts for the applicant entities on different loan applications. Jang and DeMatteo then spent the PPP and EIDL funds for inappropriate uses, including buying cryptocurrency, houses, and a car. On Aug. 6, DeMatteo was sentenced to two years and six months in prison. On Aug. 27, Jang was sentenced to a year and five months in prison. This case was investigated by the U.S. Agency for International Development.Between May 2020 and March 2021, Sheila Bynum-Coleman fraudulently sought and obtained more than $225,000 in loan proceeds from the Paycheck Protection Program on behalf of eight purported business entities.\u0026nbsp; Bynum-Coleman used those funds for personal purposes, including paying off the mortgage on her residence, purchasing luxury clothing, and paying off her personal credit cards. Bynum-Coleman also defrauded the Virginia Employment Commission, submitting fraudulent applications for Pandemic Unemployment Assistance funds, obtaining more than $17,000 of unemployment compensation benefits. On July 27, Bynum-Coleman was sentenced to two years in prison. This case was investigated by the Department of Justice Office of the Inspector General.On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department\u2019s work to combat fraud supports President Trump\u2019s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.","changed":"\u003Ctime datetime=\u00222026-09-14T17:46:53-04:00\u0022\u003E1789422413\u003C\/time\u003E\n","component":[{"uuid":"d50b78df-a13b-4519-9b32-00aae6e21409","name":"National Fraud Enforcement Division"},{"uuid":"7e997054-52a5-485c-82a1-1a0e161abc4e","name":"USAO - Virginia, Eastern"}],"created":"\u003Ctime datetime=\u00222026-09-14T17:46:41-04:00\u0022\u003E1789422401\u003C\/time\u003E\n","date":"1789387200","image":"","number":"","teaser":"","title":"Eastern District of Virginia joins DOJ Fraud Division, SBA, and SBA OIG in surge takedown exceeding $245M in COVID-era loan fraud","topic":[{"uuid":"32b4d47b-2142-420c-9aae-28f7bf2c86d4","name":"Fraud"},{"uuid":"49a56700-51fc-458e-8f05-a423079c287b","name":"Benefit Fraud"},{"uuid":"b7ce2474-26e0-427a-94c4-95dee8df26cb","name":"Disaster Fraud"},{"uuid":"77a2d846-a826-49db-a31a-c5db747e9ad3","name":"Financial Fraud"}],"url":"https:\/\/www.justice.gov\/usao-edva\/pr\/eastern-district-virginia-joins-doj-fraud-division-sba-and-sba-oig-surge-takedown","uuid":"891c9743-2dd1-4aa5-ad9a-5d998c5f0d6c"}]}