Macon Business Owners Pocketed More Than $2M Through COVID Loan Fraud, Indictment Says; Smithtown Man Admits To $1M Coronavirus Fraud: Feds, and other C-Virus related stories
Macon business owners pocketed more than $2M through COVID loan fraud, indictment says
A Macon business owner has been accused of defrauding the COVID-19 pandemic relief program by seeking more than $2 million, according to his indictment unsealed this week.
The indictment accused James Frank Austin Jr., who established the Austin Smith Center for Community Development, of bank fraud, money laundering and conspiring to commit wire fraud. Rosalend Way was indicted alongside Austin on two counts of conspiring to commit wire fraud and money laundering.
The business was supposed to be focused on community work by establishing “Shalom Zones” in many Macon locations.
Both submitted allegedly fraudulent applications for the Paycheck Protection Program, a program established during the pandemic that “provided forgivable loans to small businesses for job retention and other expenses,” the indictment said. They submitted those applications through Legacy Bank and Cross River Bank, as well as Kabbage, a service loan provider.
Way was arrested on Tuesday and Austin was arrested on Wednesday. Way was released on a $20,000 bond. Austin will appear in federal court Thursday for his first appearance. —>READ MORE HERE
Smithtown Man Admits To $1M Coronavirus Fraud: Feds
A Smithtown man pleaded guilty to wire fraud after he fraudulently received approximately $1.1 million in small business disaster relief loans during the coronavirus pandemic, the United States Department of Justice announced Thursday.
Carmine G. Agnello, 38, fraudulently received loans under the United States Small Business Administration’s Economic Injury Disaster Loan Program (EIDLP), federal officials said. When sentenced, Agnello faces up to 30 years in prison, as well as restitution totaling more than $940K and a fine of up to $2.2 million.
“Agnello allegedly used over $1 million in COVID relief funds for his own financial gain,” said Daniel Brubaker, inspector in charge of the United States Postal Inspection Service’s New York Division, in a news release. “Government money that was intended to assist struggling businesses during the COVID-19 pandemic. Postal inspectors will relentlessly pursue any individuals who scheme to defraud the government and steal taxpayer funds. We, along with our law enforcement partners, will not end this pursuit of justice until those who take advantage of the U.S. Mail to commit fraud are held fully accountable. Today’s guilty plea is proof of that fact.”
Congress created the EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act, enacted on March 29, 2020, provided emergency financial aid to help with the economic effects of the pandemic. The EIDLP provided low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters, according to the government. —>READ MORE HERE
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