Long Island Woman Indicted for $3.28 Million Paycheck Protection Program Fraud Scheme (Press Release)

Summary

A press release of the U.S. Attorney's Office for the Eastern District of New York, dated Thursday, May 23, 2024, announcing that an indictment was unsealed charging Donna Ingram with wire fraud, disaster relief fraud and theft of public funds over Paycheck Protection Program loan applications. As set forth in court filings, between May 2020 and May 2021 Ingram submitted at least 27 PPP loan applications for Ingram's own companies and at least 22 other businesses, with false claims about revenue, employees, payroll costs and use of proceeds. The release states that the businesses received loans of approximately $3.28 million and that Ingram received kickbacks totaling at least $430,000. Ingram was arrested and scheduled for arraignment before Magistrate Judge Sanket J. Bulsara.

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PRESS RELEASE



Long Island Woman Indicted for
$3.28 Million Paycheck
Protection Program Fraud
Scheme
Thursday, May 23, 2024

For Immediate Release
U.S. Attorney's Office, Eastern District of New York


Defendant Submitted at Least 27 Fraudulent Applications for
Covid-19 Relief Loans

Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Donna
Ingram with wire fraud, disaster relief fraud, and theft of public funds relating to her
scheme to submit fraudulent applications for loans under the United States Small
Business Administration’s (the “SBA”) Paycheck Protection Program (“PPP”), which
Congress created as part of the Coronavirus Aid, Relief, and Economic Security
(“CARES”) Act. Ingram was arrested today and is scheduled to be arraigned this
afternoon before United States Magistrate Judge Sanket J. Bulsara.

Breon Peace, United States Attorney for the Eastern District of New York; Ivan J. Arvelo,
Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Patrick J.
Freaney, Special Agent-in-Charge, United States Secret Service (USSS); Amaleka McCall-
Brathwaite, Special Agent-in-Charge, Office of the Inspector General of the SBA, Eastern
Region Office (SBA-OIG); Edward A. Caban, Commissioner, New York City Police
Department (NYPD); and Jonathan Mellone, Special Agent-in-Charge, U.S. Department
of Labor, Office of the Inspector General, Northeast Region (DOL-OIG), announced the
arrest and charges.

“As alleged, the defendant made a business out of defrauding the government by falsely
claiming that she and others needed government loan benefits to pay their employees
during the pandemic. This money was meant to help businesses weather the
pandemic. In reality, the defendant was lining her own pockets,” stated United States
Attorney Peace. “This Office will continue prosecuting those who took advantage of the
COVID crisis and stole funds from vitally important government relief programs.”

“Donna Ingram is accused of spearheading a scheme that defrauded the United States
government of over $3.2 million in relief funds meant for the well-meaning public
during a time when their lives were in unparalleled crisis. The defendant’s alleged crimes
were anything but victimless, and robbed small businesses — the backbone of this
country — of critical resources. HSI New York stands at the forefront of investigating
financial crimes, and will pursue justice on behalf of New Yorkers regardless of how
much time has passed,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “I
commend our state and local law enforcement partners for their exceptional
collaboration that resulted in today’s arrest.”

“Bilking a loan program that served as a lifeline to businesses experiencing distress
during the pandemic is simply unconscionable," said Patrick J. Freaney, Special Agent-
in-Charge, United States Secret Service (USSS). "While our nation has moved past the
pandemic, the United States Secret Service remains steadfast in its commitment to
holding these alleged fraudsters accountable. I want to thank our many law
enforcement partners for their seamless collaboration in this important and ongoing
work.”

“Abusing the Paycheck Protection Program, which was established to support struggling
small businesses during the pandemic, for personal gain is inexcusable,” said SBA OIG’s
Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “Our office is
dedicated to safeguarding the integrity of SBA programs and ensuring that individuals
who commit fraud are held accountable. I want to thank the U.S. Attorney’s Office and
our law enforcement partners for their dedication and commitment to seeing justice
served.”

“This indictment underscores law enforcement’s ongoing commitment to ensuring that
only people and businesses truly in need used public resources earmarked for relief
programs during the pandemic,” stated NYPD Commissioner Caban. “The NYPD will
continue to assist our federal partners in any of their investigations related to that grave
time, with the goal of protecting taxpayer funds and holding all alleged fraudsters
accountable for their actions.”

“An important part of the mission of the U.S Department of Labor, Office of Inspector
General is to investigate allegations of pandemic-related fraud. We will continue to work
with our law enforcement partners to investigate these types of allegations,” stated
Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of
Labor, Office of Inspector General.

As set forth in court filings, between May 2020 and May 2021, Ingram submitted at least
27 PPP loan applications (the “Subject Applications”) on behalf of her own companies as
well as at least 22 other businesses (the “Subject Businesses”). The Subject Applications
contained false information about the Subject Businesses, including false claims about
their revenue, number of employees, payroll costs, and intended use of the loan
proceeds. For example, for one business, referred to in the Indictment as Subject
Business-3, Ingram submitted two separate applications for loans, one which falsely
claimed that the business had earned approximately $950,950 in 2019 and another
which falsely claimed that the same business had earned approximately $820,000 in
2019. Subject Business-3 received two PPP loans for $150,000 each and its owner paid
Ingram approximately $50,500 in kickbacks. In total, the Subject Businesses received
loans in the amount of approximately $3.28 million and Ingram received kickbacks
totaling at least $430,000 for her preparation and submission of the fraudulent Subject
Applications.

The charges in the indictment are allegations, and the defendant is presumed innocent
unless and until proven guilty. If convicted, Ingram faces up to 20 years’ imprisonment.

The government’s case is being handled by the Office’s General Crimes
Section. Assistant United States Attorney Sean M. Sherman is in charge of the
prosecution.

The Defendant:

DONNA INGRAM
Age: 50
Freeport, Long Island

E.D.N.Y. Docket No. 24-CR-214 (HG)

Contact
John Marzulli
Danielle Blustein Hass
U.S. Attorney's Office
(718) 254-6323

Updated May 23, 2024
Attachment
Indictment [PDF, 428 KB]
Topics
CORONAVIRUS

FINANCIAL FRAUD


Component
USAO - New York, Eastern


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