A Florida man has been charged with defrauding the COVID-19 Relief Loans

The Department of Justice reported on Dec. 29 that a Florida man was accused of fraudulently obtaining $2.1 million in COVID-19 relief loans under the Paycheck Protection Program (PPP).

Last Monday, Ft. Lauderdale resident Valesky Barosy, 27, appeared in federal magistrate court. Prosecutors believe he submitted false loan applications for more than $4.2 million in PPP loans on behalf of himself and his associates.

The Paycheck Protection Program is a federal initiative aimed at assisting small businesses in surviving the COVID-19 outbreak. The Coronavirus Aid, Relief, and Economic Security (CARES) Act has established on March 29, 2020.

Congress allowed up to $349 billion in forgiven loans to small firms that experienced exceptional economic hardship as a result of the pandemic under the program. The loans gave small businesses an incentive to keep their employees on the payroll while also allowing them to cover other costs such as mortgage interest, rent, and utilities.

Congress approved nearly $300 billion in extra PPP funding in April 2020. On May 31, 2021, the project came to a close.

Barosy falsified the applicant’s prior-year expenses, net profit, and payroll in each of the loan applications, prosecutors said. He also submitted fraudulent IRS tax forms, as per the indictment.

4 Jan 2022