U.S. Department of Labor OIG, Wayne County Man Charged With Committing $1.5 Million In Covid-19 Pandemic Fraud (USAO MD-PA 05/19/2023) (2023-05-22)

Summary

A press release from the U.S. Attorney's Office, Middle District of Pennsylvania, dated May 19, 2023, announcing that Christopher J. Miller, formerly of Newfoundland, Pennsylvania, was charged in an indictment with 54 combined counts of wire fraud, bank fraud, false statements, identity theft and unlawful monetary transactions. The indictment alleges that Miller filed, and helped others to file, dozens of fraudulent applications for PPP loans, EIDLs and Pandemic Unemployment Assistance benefits for corporate entities with no actual business operations, supported by forged IRS income tax returns. Miller and associates allegedly obtained approximately $1,500,000, and Miller allegedly received cash kickbacks and spent funds on automobiles, vacations and real estate.

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PRESS RELEASE



Wayne County Man Charged With
Committing $1.5 Million In Covid-
19 Pandemic Fraud
Friday, May 19, 2023


For Immediate Release
U.S. Attorney's Office, Middle District of Pennsylvania

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania
announced today that Christopher J. Miller, age 35, formerly of Newfoundland,
Pennsylvania, was charged in an indictment with 54 combined counts of wire fraud,
bank fraud false statements, identity theft, and unlawful monetary transactions.

According to United States Attorney Gerard M. Karam, the indictment alleges that Miller
owned and operated multiple corporate entities in Pennsylvania, Maryland, Delaware,
and Florida. Miller allegedly filed, and helped others to file, dozens of fraudulent
applications for pandemic stimulus funds, including under the Payment Protection
Program (PPP), for Economic Injury and Disaster Loans (EIDLs), and for Pandemic
Unemployment Assistance (PUA) benefits. Miller was charged with 16 counts of wire
fraud, two counts of bank fraud, two counts of false loan applications, and 17 count of
making false statements to the United States Small Business Administration, for the
fraudulent applications. Miller also is charged with one count of aggravated identity
theft, for using a stolen identity to file an application.

The applications allegedly submitted by Miller were filed on behalf of corporate entities
that did not, in fact, have actual business operations, and that bore false addresses, false
IRS-issued Employee Identification Numbers, false dates of business establishment and
operation, false employee headcount information, and fabricated gross income, gross
receipts and payroll obligation information. The applications also included forged IRS
income tax returns, and federal employment tax documents. Miller allegedly failed to
disclose in the applications that he was previously convicted of a felony.

Miller and his associates allegedly obtained approximately $1,500,000 in PPP, EIDL, and
PUA funds through filing the fraudulent applications. In addition to the personal funds
that he received, Miller also allegedly received cash kickbacks from other individuals on
whose behalf he filed the fraudulent applications. Instead of using the funds on
business expenses, Miller allegedly used them to purchase automobiles, vacations, and
real estate, among other personal expenses. Miller is charged with 16 counts of making
unlawful monetary transactions with the proceeds of his fraud.

The PPP and EIDL programs, both funded by the March 2020 CARES Act, were designed
to help small businesses facing financial difficulties during the COVID-19 pandemic. PPP
funds were offered in forgivable loans, provided that certain criteria are met, including
use of the funds for employee payroll, mortgage interest, lease, and utilities
expenses. EIDL funds are offered in low-interest rate loans, designated for specific
business expenses, such as fixed debts, payroll, and business obligation. The PUA
program was created by the CARES Act, as part of the United States government’s
efforts to mitigate the impact of the COVID-19 pandemic on the public’s health and
economic well-being. The PUA program was designed to provide unemployment
benefits to individuals not eligible for regular unemployment compensation or extended
unemployment benefits.

The case was investigated by the Federal Bureau of Investigation, and by the
Department of Labor, Office of the Inspector General. Assistant U.S. Attorney Phillip J.
Caraballo is prosecuting the case.

The maximum penalty under federal law for the most serious charges are 30 years of
imprisonment, a term of supervised release following imprisonment, and a fine. The
aggravated identity theft offense carries a mandatory two-year sentence of
imprisonment that is to run consecutive to any other term of imprisonment imposed. A
sentence following a finding of guilt is imposed by the Judge after consideration of the
applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments are only allegations. All persons charged are presumed to be innocent
unless and until found guilty in court.

                                           ###
Updated May 19, 2023

Topic
CORONAVIRUS


Component
USAO - Pennsylvania, Middle


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