As a part of the battle against the COVID-19 relief fraud schemes, this week a federal grand jury in the Western District of Tennessee indicted 10 individuals from various states for their involvement in defrauding the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). They are accused of submitting false loan applications, seeking over $950,000 in funds, and using the money for unauthorized personal expenses. The defendants face wire fraud charges, and if convicted, they could each be sentenced to a maximum of 20 years in prison for each count. The Department of Justice has pursued legal action against more than 200 defendants in over 130 criminal cases since the implementation of the CARES Act. This has resulted in the seizure of approximately $78 million in cash proceeds, and the confiscation of various real estate assets and luxury items purchased using fraudulently acquired PPP funds.
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