By: Richard L. Smith
U.S. Attorney Philip R. Sellinger has announced the indictment of three individuals for their alleged involvement in fraudulently obtaining and laundering about $5 million from federal COVID-19 relief funds through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).
Federal officials said Eric Rivera, 42, from Norcross, Georgia, Adrienne Ponzo, 49, from Bear, Delaware, and James Wessels, 54, from Middletown, Delaware, face multiple charges related to bank fraud, wire fraud, and money laundering.
The trio allegedly exploited the CARES Act's provision, which was designed to help small businesses suffering during the COVID-19 pandemic by providing forgivable loans for maintaining payroll and other approved expenses.
According to the indictment, Rivera and Wessels fabricated documentation to secure PPP loans for businesses with minimal or nonexistent operations.
Rivera is accused of orchestrating schemes that involved submitting fake bank statements and tax forms, while Wessels allegedly created fraudulent tax forms and structured the illicit spending of the loan proceeds to disguise them as legitimate payroll expenses.
Additionally, Rivera collaborated with Ponzo to defraud the SBA by preparing phony EIDL applications, further enhancing their scheme to misappropriate federal funds designated for struggling businesses during the pandemic.
These charges highlight a significant abuse of the systems set up to aid businesses impacted by the COVID-19 crisis, with potential penalties including lengthy prison terms and substantial fines for the accused.