Arkansas Project Manager Sentenced in Connection with COVID-Relief Fraud
Summary
This Justice Department release of December 7, 2020 reports that Benjamin Hayford, 32, of Centerton, Arkansas, a project manager employed by a major retailer, was sentenced by U.S. District Judge Claire V. Eagan to 24 months in prison and five years of supervised release for fraudulently seeking more than $8 million in SBA-guaranteed forgivable loans under the CARES Act. According to the release, Hayford pleaded guilty in August to an indictment charging that Hayford sought the loans from multiple banks by claiming fictitious payroll expenses backed by fraudulent payroll documentation, and admitted a false statement to a financial institution about when a Limited Liability Partnership was established. The lenders declined to fund the loans. The Criminal Division's Fraud Section and the U.S. Attorney's Office for the Northern District of Oklahoma prosecuted the case.
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Press Release Arkansas Project Manager Sentenced in Connection with COVID-Relief Fraud Monday, December 7, 2020 For Immediate Release Office of Public Affairs A project manager employed by a major retailer was sentenced to 24 months in prison followed by five years of supervised release for fraudulently seeking more than $8 million in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney R. Trent Shores of the Northern District of Oklahoma. Benjamin Hayford, 32, of Centerton, Arkansas, was sentenced today by U.S. District Judge Claire V. Eagan. Hayford pleaded guilty in August to an indictment charging him with fraudulently seeking millions of dollars in forgivable loans guaranteed by the SBA from multiple banks by claiming fictitious payroll expenses. To support his applications, Hayford provided lenders with fraudulent payroll documentation purporting to establish payroll expenses that were, in fact, non-existent. In addition, Hayford admitted to making false representations to a financial institution concerning the date that a Limited Liability Partnership for which he applied for relief was established. The lenders at issue declined to fund the loans that Hayford sought. The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program (PPP). In April 2020, Congress authorized over $300 billion in additional PPP funding. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use a certain percentage of the loan towards payroll expenses. Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Victor A.S. Régal for the Northern District of Oklahoma are prosecuting the case. The U.S. Attorney’s Office for the Western District of Arkansas provided valuable assistance in this matter. The Justice Department acknowledges and thanks the Federal Housing Financial Agency Office of Inspector General, the SBA Office of Inspector General, and the Federal Deposit Insurance Corporation Office of Inspector General for their efforts investigating this matter. The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years . Updated December 7, 2020 Topics Coronavirus Disaster Fraud Components Criminal Division Criminal - Criminal Fraud Section USAO - Arkansas, Western USAO - Oklahoma, Northern Press Release Number: 20-1320 Related Content Press Release Co-Founders of Paycheck Protection Program Lender Service Provider Charged for COVID-19 Relief Fraud Scheme An indictment was unsealed yesterday in the Northern District of Texas charging two co-founders of Blueacorn, a lender service provider, in connection with a scheme to fraudulently obtain COVID-19 relief... November 22, 2024 Press Release Lab Owner Pleads Guilty to $14M COVID-19 Fraud Scheme An Illinois man pleaded guilty today for his role in a COVID-19 testing fraud scheme. September 30, 2024 Press Release Pharmacy Owners Sentenced for $18M COVID-19 Health Care Fraud and Money Laundering Scheme Two pharmacy owners were sentenced for using New York-area pharmacies to submit millions of dollars in false and fraudulent claims to Medicare and then laundering the proceeds, including during the... June 24, 2024
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