A federal grand jury has accused a police officer in Coral Springs, South Florida, of fraudulently applying to the U.S. Small Business Administration (SBA) for an early Covid relief grant. 19 and a low interest loan.
Officer accused of EIDL loan fraud
According to the indictment, Jason Scott Carter, 44, of Boca Raton, falsely claimed that a business he allegedly owns and operates had previously enjoyed a gross income of $ 100,000, which turned out to be false. The indictment also accuses Carter of falsely and fraudulently certifying that the funds he received from the SBA would be used for business expenses to alleviate the economic damage the pandemic caused to his business.
SBA loan money spent on luxury cars
The charges revealed that instead of spending the money on his business as he had certified he would, Carter spent a lot of the money on the SBA loan at a car repair and retail company. luxury and high-end auto parts.
Charges record that Carter spent more than $ 21,000 of the loan money on the auto repair and details company.
A police officer faces up to 20 years in prison
A Justice Department statement said: “The prosecution is accusing Carter of an electronic fraud charge. If convicted, he faces 20 years in prison and a fine of up to $ 250,000.
“Carter made his initial appearance today before U.S. Magistrate Judge Bruce E. Reinhart. He was released on bail, awaiting trial.
Juan Antonio Gonzalez, U.S. Attorney for the South Florida District, Omar Perez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Miami Regional Office and David Walker, the special agent in charge, the FBI Tampa, announced the charges.
“HHS-OIG, the Miami (Tampa) regional office and the FBI Tampa are investigating this matter. Deputy Attorney Will J. Rosenzweig is prosecuting the case. U.S. Deputy Attorney Peter Laserna is in charge of the confiscation of assets “.
The Justice Department added that the charges contain mere allegations and that defendants like Carter are found innocent unless and until they are found guilty in court.
The working group fights against the fraud of the CARES Law
Following the enactment of the Coronavirus Aid, Relief, and Financial Security Act (CARES) in March 2020, it began offering emergency financial assistance to millions of Americans suffering from the economic effects caused by the pandemic. of Covid-19. As part of this, the CARES Act authorized and provided funding to the SBA so that they could offer disaster damage loans to eligible small businesses, which Jason Scott Carter applied for.
However, Carter’s alleged fraud is not the first instance, and on May 17, 2021, it was necessary for the Attorney General to establish a Covid-19 Fraud Enforcement Working Group to gather Justice Department resources. The working group worked in collaboration with agencies across the government to combat and prevent pandemic-related fraud.
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