PPP Fraud Is ‘Worst In History’: $200B Stolen and Blown On Lamborghinis, Beach Houses and Bling

Tens of thousands of individuals engaged in fraudulent activities, using the ease of the COVID loan program to exploit it and acquire extravagant luxuries such as Lamborghinis, vacation homes, private jet flights, and Cartier jewelry, resulting in a staggering $200 billion heist, the NY Post reports.

Approximately $1.2 trillion in COVID bailout funds for businesses were swiftly approved by Congress in 2020 and 2021, distributed through the Economic Injury Disaster Loan Program (EIDLP) and the Paycheck Protection Program (PPP). However, a recent report from the Small Business Administration’s Office of Inspector General revealed that a shocking 17% of the funds, equivalent to an estimated $200 billion, were lost to fraud.

The SBA has identified over 90,000 potential cases for investigation and has already prosecuted numerous individuals, including former New York Jets wide receiver Josh Bellamy.

One example of the misuse of taxpayer funds involved Donald Finley, the owner of the now-closed Manhattan theme restaurant Jekyll & Hyde, who used PPP and EIDLP funds to purchase a Nantucket home with waterfront views near Dionis Beach. Finley now faces severe penalties, including up to 30 years in prison, restitution of over $3.2 million, and a fine of $1.25 million.

Experts have noted that fraudsters created fictitious businesses or manipulated employee numbers to access more free cash, exploiting the lack of verification and oversight in the loan program. The ease of committing fraud was further emphasized by the fact that all information provided was self-reported and remained unchecked.

Haywood Talcove from LexisNexis Risk Solutions highlighted the situation, stating, “During the height of the pandemic, it was really hard to purchase luxury items like a Rolls-Royce or a high-end Mercedes because you had people walking in with cash from the PPP program to purchase those items for whatever the dealer was asking.”

Efforts to bring justice to the fraudsters have been underway, with the SBA reporting a total of 803 arrests related to pandemic fraud as of May 2023.

Instances of misuse of PPP funds include the case of David Hines, who used $3.9 million to buy a Lamborghini Huracan Evo sports car, resulting in the seizure of the vehicle and $3.4 million from his bank accounts. In another example, Kenneth Landers used $910,000 in PPP funds to pay off mortgages and went on to purchase an 18-carat gold Rolex watch and a vintage Jaguar XK-E Roadster, alongside $113,000 in cash withdrawals linked to the fraudulent loans.

Darrell Thomas from Georgia received a 15-year prison sentence for using PPP funds to buy luxury vehicles, including a Mercedes-Benz S-Class, a Land Rover, an Acura NSX, and a gold Rolex. Thomas, who orchestrated a scheme to obtain $11.1 million in fraudulent loans from the PPP, pleaded guilty to conspiracy to commit bank fraud and money laundering.

Besim Kukaj, a Manhattan restaurateur, was discovered to have scammed $6.1 million in bogus loans for his restaurant group, using the funds to purchase designer jewelry and clothing. Kukaj’s actions were driven by greed, and he even resorted to physically threatening a victim he owed money to. After being arrested and released on bail, Kukaj began serving a sentence of six years and eight months in federal prison.

Leslie Bethea from Tennessee received a prison sentence of 78 months for fraudulently obtaining a $20,805 loan by falsely claiming a pandemic-related loss of income. Bethea used the stolen funds to finance a five-day trip to a resort in Sunny Isles Beach, Florida, and also used some of the money for undisclosed plastic surgery procedures.

Scott Jackson Davis from Houston was sentenced to prison and ordered to repay $3.3 million after fraudulently obtaining PPP loans for non-existent businesses. Instead of preserving jobs, Davis used the funds for extravagant private jet travel, real estate, jewelry, firearms, and luxury vehicles.

These cases exemplify the widespread misuse of taxpayer money, where individuals took advantage of the relaxed oversight of the loan program to fund their lavish lifestyles.

{Matzav.com}