In a recent development in federal court in Boston, two individuals have been sentenced for their involvement in a complex scheme to fraudulently obtain millions of dollars in Paycheck Protection Program (PPP) funds. This PPP fraud involved Adiana Pierre, 39, of Lookout Mountain, Tenn., and Gardy Alexandre, 51, of West Palm Beach, Fla., who were both sentenced to prison terms and supervised release for their roles in orchestrating this multi-state fraud. This article delves into the details of the case, shedding light on the nature of the scheme, the sentencing, and the broader implications for combating financial fraud.
The Scheme Unveiled
The sentencing, handed down by U.S. District Court Judge Myong J. Joun, marks a significant step in addressing the widespread misuse of funds leading to PPP Fraud. Pierre received a 17-month prison sentence, while Alexandre was sentenced to 15 months, with both individuals also facing three years of supervised release. Additionally, Wallace Ford, 38, of Buford, Ga., awaits sentencing at a later date, further underscoring the breadth of this criminal operation.
Origins of Deceit
The trio’s fraudulent activities involved the submission of numerous bogus PPP applications across multiple states, including Massachusetts, with the aim of securing funds for themselves and others. Their modus operandi included fabricating employee numbers and inflating monthly payroll expenses on behalf of both legitimate and non-existent businesses and non-profit organizations.
Timeline of PPP Fraud
The PPP fraud scheme, which commenced shortly after the funds became available in April 2020, was masterminded by Ford, who initially submitted applications on behalf of his own businesses. Later, he enlisted Pierre, Alexandre, and others to identify potential applicants for fraudulent PPP loans. These individuals would then provide the necessary information to Ford, who would proceed to submit fraudulent PPP applications online. These applications were accompanied by falsified wage and tax documents, all in an attempt to substantiate the misrepresented information and secure funds through deceitful means.
Ill-Gotten Gains
As a result of their illicit activities within the PPP fraud scheme, the defendants managed to obtain approximately $7 million in PPP funds between May and August 2020. However, their deceitful practices did not end there. In a further display of criminality, Ford, Pierre, Alexandre, and their associates demanded kickback payments from the borrowers who received the fraudulent funds from PPP fraud, often amounting to 10 or 20 percent of the loan proceeds.
Consequences of Fraud
Collectively, the trio pocketed over $1 million in kickback payments, further underscoring the egregious nature of their actions and the financial toll inflicted on the PPP program and its intended beneficiaries. This case serves as a stark reminder of the lengths to which individuals will go to exploit government relief programs for personal gain, particularly during times of crisis.
Government Response and Task Force
In announcing the sentencing, Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, highlighted the collaborative efforts of law enforcement agencies in combatting COVID-19-related fraud. Assistant U.S. Attorney David M. Holcomb, from the Securities, Financial & Cyber Fraud Unit, led the prosecution, indicating a strong response to these fraudulent activities.
The establishment of the COVID-19 Fraud Enforcement Task Force by the Attorney General in May 2021 underscores the government’s commitment to combating and preventing pandemic-related fraud. By marshaling resources and enhancing coordination across agencies, the Task Force aims to identify and prosecute those responsible for fraudulent activities, thereby safeguarding relief programs and preventing further harm to the public.
Conclusion
In conclusion, the sentencing of individuals involved in the PPP fraud scheme serves as a critical milestone in holding accountable those who seek to exploit government programs for personal gain. It also underscores the importance of ongoing vigilance and cooperation among law enforcement agencies in combating fraud and ensuring the integrity of relief efforts aimed at aiding individuals and businesses impacted by the COVID-19 pandemic.
