U.S. Department of Labor OIG, Bank Manager Sentenced to 65 Months in Prison for Coordinating Multistate COVID-19 Relief Program Fraud Scheme (USAO D-NJ 10/21/2024) (2024-10-25)

Summary

Press release from the U.S. Attorney's Office for the District of New Jersey, dated October 21, 2024, announcing that former bank branch manager Tommy Hawkins of Philadelphia was sentenced to 65 months in prison after pleading guilty before U.S. District Judge Karen M. Williams to bank fraud conspiracy. According to the release, Hawkins worked with Eric Rivera, Lisa Smith and others to recruit individuals to apply for PPP loans through the Conshohocken, Pennsylvania, branch, and the bank approved at least 38 loans and disbursed approximately $5 million. Judge Williams imposed the sentence on Oct. 18, 2024, with three years of supervised release and restitution of $5.3 million. Codefendant Sieff Robert Sargeant was sentenced on Oct. 2, 2024, to six months in prison; charges remain pending against Rivera and James Wessels, who are presumed innocent.

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PRESS RELEASE


Bank Manager Sentenced to 65 Months in
Prison for Coordinating Multistate COVID-
19 Relief Program Fraud Scheme
Monday, October 21, 2024

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

CAMDEN, N.J. – A former branch manager of a national financial institution was
sentenced today to 65 months in prison for using his position to organize a conspiracy
to help individuals obtain at least 38 fraudulent Paycheck Protection Program (PPP)
loans totaling approximately $5 million, U.S. Attorney Philip R. Sellinger announced
today.

Tommy Hawkins, 61, of Philadelphia, previously pleaded guilty before U.S. District Judge
Karen M. Williams to one count of bank fraud conspiracy. Judge Williams imposed the
sentence on Oct. 18, 2024, in Camden federal court. A codefendant, Sieff Robert
Sargeant, 44, of Island Park, New York, previously pleaded guilty before Judge Williams
to one count of money laundering and was sentenced on Oct. 2, 2024, to six months in
prison and six months of home confinement.

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

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted
in March 2020 and was 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
hundreds of billions of dollars in forgivable loans to small businesses for job retention
and certain other expenses, through a program referred to as the Paycheck Protection
Program (PPP). To obtain a PPP loan, a qualifying small business was required to apply
and provide information on its operations, including the number of employees and
expenses. In addition, businesses generally had to provide supporting documentation.

In 2020 and early 2021, Hawkins worked as the branch manager of the Conshohocken,
Pennsylvania, branch of a national bank that was accepting Paycheck Protection
Program (PPP) loan applications. Hawkins worked with Eric Rivera, Lisa Smith, and
others to recruit individuals who owned companies with little or no operations to open
bank accounts at Hawkins’ branch and apply for PPP loans. Hawkins helped the
recruited individuals submit PPP loan applications that contained materially false
representations about the companies’ number of employees and payroll expenses. The
applications also included false documentation, including tax forms. Based on these
applications, Hawkins’ bank approved at least 38 PPP loans and disbursed approximately
$5 million. Hawkins received incentive compensation through the bank for opening
business bank accounts for the companies that received fraudulent PPP loans and also
had an agreement with Rivera and Smith for them to pay Hawkins $5,000 of the loan
proceeds for each PPP loan that Hawkins helped to obtain.

In April 2021, Sargeant’s business received a PPP loan based on a fraudulent application
that was submitted through Hawkins’ branch. Sargeant then paid another individual,
James Wessels, to create fake payroll checks. Sargeant distributed fake payroll checks to
a friend, who cashed the checks and returned the majority of the cash to Sargeant. This
was done to conceal that the proceeds actually were being spent on non-payroll
expenses.

In addition the prison term, Judge Williams sentenced Hawkins to three years of
supervised release and ordered restitution of $5.3 million.

Lisa Smith has pleaded guilty to her role in the scheme. Charges remain pending against
Rivera and Wessels, and they are presumed innocent unless and until proven guilty.

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 Corwin Rattler; 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.

The government is represented by Assistant U.S. Attorney Daniel A. Friedman and
Attorney-in-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division
in Camden.
Updated October 21, 2024

Topic
CORONAVIRUS


Component
USAO - New Jersey


Press Release Number: 24-388


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