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Fake 940/941s, More Lamborghinis, Rolexes and Real Estate Oh My.

Updated: Feb 15, 2022

The Hits Keep on Coming - More Frontline Zeroes of the Pandemic.

Part II – An addition to the Small Business Owners (Real or Fake) Who Are Accused or Convicted of the Largest EIDL/PPP/CARES Act Fraud

By Thomas W. Tramaglini, Managing Director at BRP Onesta

A few weeks ago, I wrote an article (see link below) that provided some context about one of our clients who was convicted of defrauding the United States of nearly $1.2 Million in Payroll Protection Program Funding because it was a real eye-opener for me and my journey in an industry that supports small businesses. Every day, I work with professional, hard-working, small business owners who in many cases live paycheck or have had to shut their doors because of the Pandemic. I love our clients because they are the crossroad of what makes our nation great.

Yet, I continue to read about the people who have defrauded our nation with EIDL or PPP fraud and I wanted to share more examples of what some people tried to get away with that in essence, shut out many of our clients and small business owners who deserved PPP or EIDL funds and were shut out.

These Small Business Owners Lied About The Number of Employees They Had

If you read the dockets on sites like Arnold & Porter, many of the cases involve small business owners flat out lying on their PPP applications about the number of employees they had. While I believe that this could have been a practice more prevalent than what is known, the cases also show falsified documents made to back up the claims for how many employees a company did employ.

I guess these people did not read much Mark Twain. He said, “Honesty is the best policy – when there is money in it.”

Former Olympian Allison Baver

For instance, former Olympic speedskater Allison Baver is accused of falsely obtaining $10 Million in PPP funds. According to Newsweek, Baver claimed that her company, Allison Baver Entertainment had over 400 employees on its monthly payroll. She submitted several loan applications to banks back in April 2020, however according to the complaint, she did not have any employees on payroll.

For anyone who has any brain and owns a small business, it takes a big set to try and get $10 Million in PPP funding and have 0 em