The Department of Justice arrested more than 50 people who allegedly received loans fraudulently under the government’s official program to small businesses affected by the coronavirus pandemic.
Defendants through the firm come with National Football League player Josh Bellamy. Bellamy, who until recently a major recipient of the New York Jets, earned more than $1. 2 million in federally funded aid for his company, Drip Entertainment. the money, intended to help small businesses keep staff on payroll, for non-public expenses, adding expenses of nearly $63,000 at the Seminole Hard Rock Hotel and Casino in Hollywood, Florida. Bellamy was arrested Thursday morning.
The Jets declined to comment. A source close to the team said Bellamy is no longer on the Jets roster, but may not contact Bellamy for comment.
At least 57 other people accused of receiving Loans from the Payment Check Protection Program, ranging from $30,000 to $24 million and totaling $175 million, have been charged since May, federal officials said in the report. ‘a press convention on Thursday. People spent the loans on “frivolous expenses,” adding sports cars and homes for non-public use, said Craig Goldberg, deputy leading inspector of the U. S. Postal Inspection Service.
The Paycheck program provided more than five million loans totaling $5,2 billion before the new programs were closed last month. However, many small business owners who were denied loans ran out of cash and had to lay off or even close their businesses.
“The cash that the taxpayers’ cash stole. Every dollar they took, a dollar we all set aside to help our fellow Americans in the worst national crisis in history,” Brian C said. Rabbitt, Acting Assistant Justice Secretary of the Criminal Division of the Department of Justice Thursday.
The alleged scammers fall into two categories, according to the agency: the first includes others who claimed to apply for loans to pay off staff and other legal expenses, but who spent cash on luxury cars, a house, renovations, diamonds, strip clubs and gambling. .
For example, businessman Lee Price III of Houston, Texas, who borrowed from two separate companies, accused of fraudulently obtaining more than $1. 6 million in coronavirus aid funds, allegedly used the cash to buy a Lamborghini Urus sports car and Rolex watch. , as well as spending it on real estate transactions and houston strip clubs and nightclubs, prosecutors say.
Kenneth Gaughan of Washington, D. C. has been charged after getting $2. 1 million in pay-check loans and financial damage, a component of which was spent to acquire a 33-foot yacht, a 2020 Kia Stinger and a townhouse in Washington, DC
The current category of scammers was allegedly involved in networks of coordinated criminals comprising several people. Fraudulent activities resulted in $70 million losses to the government, according to the Department of Justice, which was able to freeze or freeze more than $30 million in loans.
The firm said multiple arrests serve as a warning to those contemplating defrauding the government. Rabbitt said he hopes more fraud similar to the Paycheck program will be discovered.
During the press conference, James Lee, deputy director of Criminal Investigation at the Internal Revenue Service, issued a warning to criminals: “Those of you who think you’re smart, who think you’re going unnoticed because they don’t flaunt the stolen money, I’m here to tell you that you’re not smart, we all see you and you can’t hide from those paper and virtual evidence that you let us follow. “
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