Pandemic Darlings The pandemic economy, in original documents
Home Source documents Woman Admits Multimillion-Dollar COVID-19 Relief Program Fraud Scheme (Press Release, July 18, 2024)

Woman Admits Multimillion-Dollar COVID-19 Relief Program Fraud Scheme (Press Release, July 18, 2024)

Summary

A press release of the U.S. Attorney's Office for the District of New Jersey, dated Thursday, July 18, 2024, announcing that Lisa Smith of Cornelius, North Carolina, pleaded guilty before U.S. District Judge Karen M. Williams on July 17, 2024, to an information charging one count of bank fraud conspiracy. According to documents filed and statements made in court, Smith obtained $125,000 in PPP loans for two companies Smith controlled using fake bank statements and fake IRS tax forms. The release states that Smith and conspirators recruited owners of companies with little or no operations to apply, leading to PPP loans totaling more than $3.5 million, and that Smith received a percentage of the loan proceeds. The count carries a maximum of 30 years in prison.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Woman Admits Multimillion-Dollar COVID-19 Relief Program Fraud Scheme (Press Release, July 18, 2024).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-07-19-woman-admits-multimillion-dollar-covid-19-relief-program-fr-d81e8f294c/, SHA-256 c38d26fa70335de7f45723246e8fb3d1e342e607267dcb9e29b623c37f55d70a.

Full text

PRESS RELEASE




Woman Admits Multimillion-
Dollar COVID-19 Relief Program
Fraud Scheme
Thursday, July 18, 2024

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


CAMDEN, N.J. – A North Carolina woman admitted conspiring to submit fraudulent
applications leading to the issuance of 29 Paycheck Protection Program (PPP) loans
totaling more than $3.5 million, U.S. Attorney Philip R. Sellinger announced today.

Lisa Smith, 61, of Cornelius, North Carolina, pleaded guilty before U.S. District Judge
Karen M. Williams in Camden federal court on July 17, 2024, to an information charging
her with one count of bank fraud conspiracy.

According to documents filed in these cases and statements made in court:

In early 2021, Smith submitted PPP loan applications for two companies that she
controlled. The applications included fake bank statements and fake IRS tax forms, and
significantly overstated the companies’ number of employees and payroll expenses.
Smith obtained $125,000 in PPP loans based on these fraudulent applications. Smith
and her conspirators recruited individuals who owned companies with little or no
operations to apply for PPP loans. Smith helped the recruited individuals submit PPP
loan applications that contained fake bank statements and fake IRS tax forms, and that
contained materially false representations about the companies’ number of employees
and payroll expenses. Based on these fraudulent PPP loan applications, more than 25
PPP loans totaling more than $3.5 million were approved and funded. Smith received a
percentage of the loan proceeds as compensation for her role.

The count of conspiracy to commit bank fraud is punishable by a maximum of 30 years
in prison and a $1 million fine. Sentencing is scheduled for Nov. 21, 2024.
U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance
Corporation – Office of the Inspector General, New York Region, under the direction of
Special Agent in Charge Patricia Tarasca; special agents of the FBI’s South Jersey
Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs in
Philadelphia; special agents of the Social Security Administration, Office of the Inspector
General, Boston-New York Field Division, under the direction of Acting Special Agent in
Charge Bradley Parker; and special agents of the U.S. Department of Labor, Office of the
Inspector General, New York Region, under the direction of Special Agent in Charge
Jonathan Mellone, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Daniel A. Friedman and Jason
M. Richardson, Attorney in Charge of the U.S. Attorney’s Office’s Camden Office.

smith.information.pdf

Updated July 18, 2024

Topic
CORONAVIRUS


Component
USAO - New Jersey

Press Release Number: 24-268


File and source

File
2024-07-19-Woman-Admits-Multimillion-Dollar-COVID-19-Relief-Program-Fraud-Scheme-USAO-D-NJ-07-18-2024.pdf
Size
94,967 bytes
SHA-256
c38d26fa70335de7f45723246e8fb3d1e342e607267dcb9e29b623c37f55d70a
Our copy
2024-07-19-Woman-Admits-Multimillion-Dollar-COVID-19-Relief-Program-Fraud-Scheme-USAO-D-NJ-07-18-2024.pdf
Original
No public link identified.
Back to top