A Nevada man is accused of fraudulently acquiring roughly $500,000 from federal coronavirus (COVID-19) reduction applications after which laundering the cash by way of family and friends in order that he may purchase a $400,000 home.
Brandon Casutt, 49, of Henderson is charged with wire fraud, financial institution fraud, making false statements to a monetary establishment, concealment cash laundering, and fascinating in illegal financial transactions. Attorney information was not out there.
In accordance with the felony criticism, Casutt is accused of perpetrating a scheme to submit fraudulent mortgage purposes to the Cost Safety Program and the Financial Damage Catastrophe Mortgage (EIDL) program. The PPP and the EIDL are federal COVID-19 reduction applications approved beneath the Coronavirus Help, Reduction, and Financial Safety (CARES) Act that was handed by Congress in March 2020. The loans, that are serviced by federally insured banks and assured by the Small Enterprise Administration (SBA), are supposed to present emergency monetary help to American companies scuffling with the financial results of the coronavirus pandemic.
Casutt allegedly filed two PPP mortgage purposes for about $350,000 for a enterprise referred to as Sky DeSign, in addition to an EIDL mortgage for about $150,000 for a charity referred to as Skyler’s C.F. Basis, which is supposedly dedicated to elevating consciousness about cystic fibrosis. The mortgage purposes reportedly indicated that each entities had a number of workers, vital payroll bills, and substantial annual income. Nevertheless, data present that neither entity has workers nor pays any salaries, the criticism claims. For instance, the charity basis reportedly had nowhere close to the $600,000 income final 12 months that Casutt listed on the EIDL mortgage software.
All of Casutt’s loans had been authorised and funded. He allegedly laundered the funds by writing checks to 2 dozen totally different folks—pals, associates, members of the family, and himself—every within the quantity of an estimated $8,300 with “pandemic pay” and “again pay” written of their’ memo strains. He then had the funds diverted to a checking account beneath the title of the charity basis and used them, together with the EIDL funds, to purchase a $400,000 dwelling in Henderson. He and his household moved into the home on the finish of June 2020, sources point out.
PPP loans have reportedly helped greater than 5 million small companies by offering them with a a lot wanted lifeline through the coronavirus disaster. Whereas nearly all of enterprise homeowners who utilized for loans have used the cash for its supposed function, there are reviews of greater than three dozen incidents of fraud involving this system. So far, the Justice Division has filed 39 fraud circumstances involving this system, charging round 58 defendants. A majority of the loans proceeds in these circumstances have already been efficiently recovered by way of seizures and frozen financial institution accounts, officers stated.
Anybody suspected of committing fraud associated to federal COVID-19 reduction applications ought to instantly seek the advice of an experienced fraud defense attorney. A superb lawyer can look at the proof, conduct an impartial investigation, and decide one of the best plan of action to reduce the potential penalties.
South Florida Fraud Protection Legal professional
Are you accused of committing fraud in South Florida involving federal COVID-19 reduction applications? Contact Brian Silber, P.A. to arrange a free preliminary session with one in all South Florida’s most experienced fraud defense attorneys.