US$14.7m COVID fraudsters all Jamaicans – FBI report

THE SIX people arrested last Tuesday by the Federal Bureau of Investigation (FBI) and charged with mail fraud and money laundering, arising out of a scheme to defraud the Paycheck Protection Programme of US$14.7 million, are all Jamaicans.

Earlier reports had indicated that only two of the suspects were from the island.

Arrested and charged are Glenroy Walker, 65, of New Rochelle; Howard Levy, 60, of the Bronx; Gary Wheeler, 46, of Mount Vernon; Norma Getten, 62, of the Bronx; Donnat Powell, 48, of Patterson, New Jersey; and a woman going by the name Sherri Baez, 50, of Freeport, Long Island.

The Gleaner understands that Baez is not the latter’s given name, and that she is ‘out of status’ in the United States.

Walker, who was involved in the mortgage industry, previously hosted a programme on WVIP 93.5 FM radio station dealing with mortgages and other financial matters. Further, he announced some time ago that he was undertaking a community project in Clarendon, Jamaica, but there is no information that this project ever materialised.

All six were taken into custody on June 7 and taken before the courts later the same day.

The charges carry a maximum penalty of 30 years in prison.

Walker and Levy are also charged with a single count each of aggravated identity theft, which carries a mandatory two-year consecutive sentence.

The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

SIGNIFICANT KICKBACKS

The complaint, unsealed by the US Attorney’s Office for the Southern District of New York, headed by Jamaican Damian Williams, said between at least July 2020 and February 2022, Walker and Levy operated a scheme to submit fraudulent applications for loans from the United States Small Business Administration (SBA) Paycheck Protection Programme (PPP).

According to the complaint, Walker and Levy submitted more than 100 fraudulent PPP loan applications to various financial institutions. Among other fraudulent misrepresentations, the PPP applications they submitted frequently contained phony bank statements and tax documents.

The fraudulent applications submitted by the six defendants collectively sought more than $14.7 million in loans and resulted in the disbursement of more than $4.6 million from various financial institutions, all guaranteed by the SBA.

According to the federal complaint filed against the defendants, Baez, Getten, Powell, and Wheeler all participated in this scheme with Walker and Levy by, among other things, participating in the submission of fraudulent applications for their own purported businesses and recruiting other prospective fraudulent PPP applicants into the scheme. Walker and Levy received significant kickbacks from the applicants, including Baez, Getten, Powell, and Wheeler, and shared portions of their kickbacks with recruiters, including some of the defendants.

SHAM DOCUMENTS

The US Attorney, Williams, said: “As alleged, the defendants schemed to steal millions of dollars from a programme Congress created to help struggling small businesses weather the COVID-19 pandemic. As we continue to recover from the COVID-19 pandemic, this Office will pursue and prosecute the fraudsters that took advantage of a global emergency to greedily line their own pockets.”

The PPP was created by Congress to provide billions of dollars in forgivable loans to small businesses struggling to fund payroll and certain other qualifying business expenses because of the effects of the COVID-19 pandemic. The PPP was overseen by the SBA, which guaranteed the loans issued, in the first instance, by commercial lenders.

FBI Assistant Director in Charge Michael J. Driscoll said: “As alleged, the defendants conspired to fraudulently obtain more than $14 million from the Paycheck Protection Program through applications containing sham documents. This unfortunately is another example of individuals attempting to scam a programme that was designed to help Americans during unprecedented upheaval. Ensuring that fraudsters who abused the Paycheck Protection Program are brought to justice remains a priority for the FBI.”

Williams praised the outstanding work of the FB in the apprehension of the defendants.

The prosecution is being handled by the Office’s White Plains Division.

Assistant US Attorneys Jared Hoffman and Derek Wikstrom are in charge of the prosecution.