United States v. Reginald Alphonso Hopkins

Case summary

Reginald Alphonso Hopkins, 52, of Prince George's County, Maryland, pleaded guilty to conspiracy to commit wire fraud relating to fraudulent Paycheck Protection Program claims.¹

According to his plea agreement, Hopkins fraudulently obtained $1,007,224 in PPP funds and $9,000 in Economic Injury Disaster Loan funds for purported businesses he controlled: a transportation business, a car sales business and an assisted living facility. He also attempted to fraudulently obtain more than $3,132,224 in PPP and EIDL funds, the agreement says.¹

On June 11, 2020, a co-conspirator acting at Hopkins's direction submitted a fraudulent PPP application to Bluevine and Celtic Bank for Prestige Executive Transportation, falsely claiming 15 employees and $116,436 in average monthly payroll. It was supported by a fabricated 2019 IRS Form 944 showing $1,397,237.78 in 2019 payments to employees. The loan was funded, approximately $291,090 was distributed, and Hopkins gave the co-conspirator a $58,000 check as a kickback.¹

A March 14, 2021 application to Cross River Bank for Prestige 24/7 Auto Sales & Services LLC claimed 15 employees and $120,409 in average monthly payroll, supported by a fabricated 2019 IRS Form 940. It was funded on March 23, 2021, and approximately $294,771 was disbursed to Hopkins.¹

On March 23, 2021, the co-conspirator, at Hopkins's direction, submitted a third application to Cross River Bank, for Prestige Assisted Living Inc., claiming 24 employees and $168,545 in average monthly payroll. It was supported by a fabricated 2019 IRS Form 940 showing $2,022,544.12 in 2019 wages and a fabricated February 2020 Wells Fargo statement showing a $123,538.50 beginning balance. The actual beginning balance was negative $3.50. Prestige Assisted Living did not obtain a license to operate as an assisted living facility until December 18, 2020, was authorized to have four beds, and never paid wages to any employee. That loan was funded and approximately $421,363 was distributed to Hopkins, who again paid the co-conspirator kickbacks, totaling $44,000.¹

Hopkins spent the proceeds in ways that included $177,000 in kickbacks to the co-conspirator, PPP funds given to friends, family members and associates for purposes unrelated to employment, large cash withdrawals for himself and payments on personal debts. With $30,000 of it he bought an auto body repair shop, B&G Auto Repair LLC, for which he planned to seek another fraudulent PPP loan. He also conspired with the co-conspirator to obtain PPP loans for other purported businesses, including Prestige Paradise Promotions, Prestige Executive Protection Services II and Prestige Real Estate & Development, but those loans never closed. A March 19, 2021 application seeking $250,723 for Prestige Executive Protection Services was ultimately declined. Separate EIDL applications for Prestige Executive Transportation and Prestige Executive Protection Services II were both declined, though Hopkins still received EIDL advances of $5,000 and $4,000 respectively.¹

U.S. District Judge Richard D. Bennett sentenced Hopkins to two years in federal prison, followed by one year of home confinement as part of three years of supervised release. U.S. Attorney Erek L. Barron credited the FBI with the investigation and thanked the Baltimore County Police Department and the SBA Office of Inspector General; Assistant U.S. Attorney Paul Riley prosecuted the case.²

Notes

1. U.S. Attorney's Office for the District of Maryland, "Prince George's County Man Pleads Guilty To Fraudulently Obtaining Covid-19 Cares Act Paycheck Protection Program Loans" (original), September 27, 2023. ↩₁ ↩₂ ↩₃ ↩₄ ↩₅ ↩₆
2. U.S. Attorney's Office for the District of Maryland, "Baltimore Man Sentenced to Two Years in Federal Prison for Fraudulently Obtaining COVID-19 CARES Act Paycheck Protection Program Loans" (original), January 10, 2024. ↩

Summary written from the documents on this page; every sentence is sourced.