An Illinois grand jury indicted two Illinois men in separate fraud cases. The indictment alleges that the two men committed fraud connected to COVID-19 relief offered to businesses through the Small Business Administration. The first defendant allegedly applied for an emergency loan for his business, and provided a fake name for a company that does not, in fact, exist. He claimed on the loan application stated that his non-existent business employed 11 people and brought in gross revenue of $1.2 million. He received approximately $160,000 in loan proceeds from the Small Business Association, wired to his bank account. He is facing wire fraud charges.
The second defendant allegedly received two SBA COVID-19-associated loans for his business, totaling $98,000. He reportedly transferred the bulk of those funds into an account in the Dominican Republic. He now faces one count of money laundering and seven counts of wire fraud. Each man will appear in January for arraignment in an Illinois federal court. If convicted, they face up to 30 years in prison. The maximum penalty for money laundering and mail fraud is up to 20 years in prison.
Who is Investigating Fraud Charges Related to COVID-19 Relief?
The Internal Revenue Service (IRS) and the Criminal Investigation Division, which is part of the Central Illinois Task Force, investigated the cases. The Small Business Administration, the Office of the Inspector General, the U.S. Secret Service, and several other government agencies have been working hard to investigate fraud cases related to COVID-19 relief. Law enforcement has been cracking down on investigating and prosecuting defendants who allegedly fraudulently took advantage of COVID-19 relief programs. The FBI has warned that those who illegally take advantage of the $2 trillion stimulus package will be investigated and prosecuted.
Defending Against COVID-19-Related Criminal Fraud Cases
If you have been charged with fraud related to COVID-19 relief loans, you need to speak with an attorney as soon as possible. Many people who are accused of wire fraud have a challenging time understanding their charges. You do have options, but you need a skilled lawyer who will begin creating a legal defense strategy on your behalf.
After you are arrested and questioned, you will be assigned a public defender. Unfortunately, public defenders have dozens of other cases. They are usually overwhelmed, overworked, and unable to give your case the time and attention it deserves. Fraud charges related to COVID-19 business loans are severe. If convicted, you could face what amounts to life in prison and be required to pay significant fines.
Contact an Experienced Fraud Lawyer Today
If you have been charged with fraud related to COVID-19 relief and you need a lawyer, experience matters. At Glasgow & Olsson, our lawyers have a proven track record of successfully resolving white-collar crime cases on behalf of our client. Contact us today to schedule an initial consultation.