Fort Lauderdale Man Pleads Guilty to COVID Fraud Charges

In the past few years, COVID fraud has rapidly emerged as a growing category of white collar crime here in southern Florida. During the early stages of the COVID-19 pandemic, Congress adopted several measures designed to provide financial assistance to businesses and individuals. Unfortunately, this led to a number of people taking advantage of the system by applying for and receiving benefits they were not entitled to under the law.

Indictment Alleged Over $1 Million in EIDL, Unemployment Compensation Fraud

For example, a 24-year-old Fort Lauderdale man recently pleaded guilty in federal court to several charges of bank fraud and identity theft arising from what prosecutors alleged was a massive COVID-19 relief fraud scheme. According to a federal grand jury indictment issued this past August, the defendant allegedly used the names and personal identifying information of multiple other individuals to apply for COVID-19 relief funds through the government’s Economic Injury Disaster Loan (EIDL) program.

Altogether, the indictment alleged the defendant obtained 14 EIDLs using other people’s identities. He also allegedly used the stolen personal information to obtain unemployment benefits from a number of states, including West Virginia and Arizona. The defendant then allegedly deposited those funds to various bank accounts.

Indeed, the bulk of the indictment charged the defendant with bank fraud. Under federal law, a person commits bank fraud when they knowingly execute–or attempt to execute–a scheme designed to either defraud a financial institution or obtain any money or other property under a financial institution’s control through false statements or other fraudulent means. Here, the indictment alleged the defendant’s false scheme consisted of opening up bank accounts in the name of his victims and then transferring those funds to other accounts under his name.

Altogether, the government alleged the defendant obtained over $1 million in EIDL and state unemployment compensation funds through this scheme. In addition to 13 counts of bank fraud, the indictment charged the defendant with one count of conspiracy to commit access device fraud, one count of use of unauthorized device access, one count of possession of 15 or more unauthorized devices, and seven counts of aggravated identity theft.

Under the terms of his plea agreement with the government, the defendant entered a guilty plea to two counts of bank fraud, one count of aggravated identity theft, and the possession of 15 or more unauthorized devices charge. In exchange, the government agreed to dismiss the remaining charges.

As far as the defendant’s sentence, that will be up to a federal judge. Bank fraud alone carries a maximum sentence of 30 years under federal law. In practice, judges rely on a complex set of federal sentencing guidelines before determining a final sentence. In addition to any prison time, the defendant’s plea agreement requires him to pay restitution of over $1 million to the government.

Contact a Fort Lauderdale White Collar Crimes Lawyer Today

Financial fraud is always a serious matter. But when the alleged victim is the government itself, you can expect the full weight of the state to come after you. If you need legal advice from a representation from a qualified Fort Lauderdale white collar crimes lawyer, call Haber | Blank LLP today at 954-767-0300 to schedule a consultation.

Source:

justice.gov/usao-sdfl/pr/man-pleads-guilty-fraudulently-obtaining-over-1-million-covid-19-relief-and