U.S. Department of Labor OIG, Southern District prosecutes nearly $11 million in COVID fraud as part of national enforcement actions (USAO SD-GA 09/05/2023) (2023-09-07)

Summary

A press release from the U.S. Attorney's Office, Southern District of Georgia, dated September 5, 2023, stating that the district conducted more than 20 enforcement actions from May through July 2023 involving a total of $10.9 million in alleged COVID-19 relief fraud. Kamario Thomas, 42, of Augusta, was sentenced to 38 months in prison and ordered to pay restitution of $4,546,945 after submitting more than 60 fraudulent loan applications. Bernard Okojie, 41, of McDonough, was convicted after a three-day jury trial over more than 20 fraudulent applications causing losses in excess of $3.5 million. Jacqueline Somesso, 55, of Savannah, was sentenced to 18 months for Bank Fraud and Misprision of a felony over losses of $570,736.87, and a civil forfeiture complaint seeks $326,461.33 seized from Kyle Waldron.

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PRESS RELEASE



Southern District prosecutes nearly
$11 million in COVID fraud as part
of national enforcement actions
Tuesday, September 5, 2023


For Immediate Release
U.S. Attorney's Office, Southern District of Georgia


Defendants defrauded small-business relief programs
SAVANNAH, GA: As part of a coordinated nationwide effort to fight COVID-19 fraud,
the Southern District of Georgia has taken action against individuals who illegally
obtained nearly $11 million in funds intended to help struggling small businesses during
the global pandemic.

As announced by U.S. Attorney Jill E. Steinberg, and in conjunction with the Justice
Department’s nationwide effort, the Southern District of Georgia conducted more than
20 enforcement actions from May through July 2023, involving a total of $10.9 million in
alleged COVID-19 relief fraud.

“Funding through the 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act
provided more than more than $650 billion to assist small businesses navigating the
financial challenges of the pandemic,” said U.S. Attorney Steinberg. “Unfortunately,
fraudsters tapped into this program for their own profit, and this nationwide effort seeks
to hold them accountable for their widespread fraud.”

The CARES act provided small business assistance primarily with grants and forgivable
loans available through the Paycheck Protection Plan (PPP) or Economic Injury Disaster
Loans (EIDL). The Southern District of Georgia U.S. Attorney’s Office, working with its law
enforcement partners, conducted multiple enforcement actions during the May-June
period including:

   •   Kamario Thomas, 42, of Augusta, Ga., was sentenced to 38 months in prison for
       Conspiracy to Commit Wire Fraud and Money Laundering. Thomas submitted
       more than 60 fraudulent loan applications for pandemic relief and received
       hundreds of thousands of dollars in kickbacks for his fraud. Thomas was ordered
       to pay full restitution in the amount of $4,546,945.
   •   Bernard Okojie, 41, of McDonough, Ga., was convicted of Conspiracy to Commit
       Wire Fraud and Money Laundering after a three-day jury trial. As detailed during
       trial, Okojie used information for non-existent companies to file more than 20
       fraudulent loan applications for pandemic relief aid, causing losses in excess of
       $3.5 million. He awaits sentencing.
   •   Jacqueline Somesso, 55, of Savannah, was sentenced to 18 months in prison for
       Bank Fraud and Misprision of a felony. Somesso submitted a fake pandemic relief
       loan application resulting in losses of $570,736.87. She was ordered to pay
       restitution in this amount and to forfeit a money judgment in that amount. The
       Court also entered a consent order forfeiting her interest in a certificate of
       deposit of $350,236.54 and a bank account of $3,520.91, both containing fraud
       money seized from her during the investigation.
   •   Kyle Waldron, 58, of Douglas, Ga., received service of a civil forfeiture complaint
       arising from his filing of numerous fraudulent loans applications for pandemic
       relief aid. The complaint seeks forfeiture of $326,461.33, the amount of fraud
       money seized from his bank account.
   •   A civil forfeiture complaint was filed and continues to be litigated concerning an
       Atlanta condominium on Peachtree Road Northwest. This property, valued at
       $328,000, was purchased with money obtained fraudulently through pandemic
       relief loans.

Anyone with information about allegations of attempted fraud involving COVID-19 can
report it by calling the Department of Justice’s National Center for Disaster Fraud
(NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form
at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

These cases were investigated by the Department of the Army Criminal Investigation
Division, Internal Revenue Service Criminal Investigations, the U.S. Secret Service, the
U.S. Treasury Inspector General for Tax Administration, the Small Business
Administration Office of Inspector General, the FBI, the U.S. Postal Inspection Service,
and the U.S. Department of Labor Office of Inspector General.

The enforcement actions were prosecuted for the United States by Assistant U.S.
Attorneys Matthew A. Josephson, Jennifer A. Stanley, Ryan C. Grover, Lindsay Berman-
Hansell, J. Bishop Ravenel, Alex Hamner, Marcella Mateo, David H. Estes, and Senior
Litigation Counsel Jennifer G. Solari.

Contact
Barry L. Paschal, Public Affairs Officer: 912-652-4422
Updated September 5, 2023

Topics
CORONAVIRUS

DISASTER FRAUD


Components
Federal Bureau of Investigation (FBI)
USAO - Georgia, Southern
Press Release Number: 67-23


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