FORT WAYNE, Ind. (WOWO) — Federal prosecutors in northern Indiana say 17 people have been charged or pleaded guilty in cases involving alleged fraud tied to COVID-19 relief programs.
The cases are part of a nationwide enforcement effort targeting fraud involving the Small Business Administration’s Paycheck Protection Program.
The U.S. Attorney’s Office for the Northern District of Indiana announced 12 indictments and five guilty pleas as part of the effort. Prosecutors nationwide brought cases against more than 160 defendants between June 12 and Sept. 1, including about 80 newly charged defendants. The cases involve approximately $245 million in intended losses to taxpayers, according to the Justice Department.
In northern Indiana, the 17 defendants are accused of PPP-related fraud involving about $1 million in alleged losses.
Among the cases announced:
Pu Wang and Rui Li
Wang and Li are accused of fraudulently obtaining federal grant money for their company, Vibronix. Prosecutors allege they misrepresented the company’s connections to China and where federally funded work was being performed.
Wang also allegedly made false statements on PPP loan applications totaling about $102,397, including claims about the primary residences of covered employees and the residency of Vibronix board members.
Shywanna Dear
Dear, a former Amtrak employee, pleaded guilty in June to wire fraud after prosecutors said she applied for or helped with 22 fraudulent PPP loan applications totaling about $435,415.
She is scheduled to be sentenced later this year and faces a maximum sentence of 20 years in prison and a fine of up to $250,000.
Jerome Greer and other Grant County defendants
Greer and more than two dozen other Grant County residents have been charged in connection with alleged fraudulent PPP loans.
Prosecutors say the defendants provided personal information to a third party who used it to prepare fraudulent tax documents and apply for loans. The defendants allegedly received the loan proceeds in their bank accounts, paid a portion to the third party and used the remaining money for personal expenses.
The defendants face charges including wire fraud and making false statements to a federal agency.
The cases are part of a two-month nationwide enforcement surge involving 40 U.S. Attorney’s Offices and 20 federal and state investigative agencies. The effort was led by the Justice Department’s National Fraud Enforcement Division, the SBA and the SBA Office of Inspector General.
The U.S. Attorney’s Office emphasized that an indictment, information or complaint is an allegation. All defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
