The DOJ filed wire fraud and bank fraud charges against a Seattle medical doctor for submitting Paycheck Protection Program ("PPP") loan applications containing inaccurate and misleading information.

According to a Complaint filed in the U.S. District Court for the Western District of Washington, the defendant, who was on probation in a criminal case in Washington, submitted false IRS payroll tax forms to several financial institutions, seeking in excess of $13 million in loans. The defendant is accused of misrepresenting both the number of employees in a construction business that he purportedly owned and the timeliness of his payroll tax payments. The defendant allegedly submitted inconsistent forms to at least eight different banks seeking PPP loans for the same business. The defendant is also accused of misrepresenting the status of his criminal case. Individuals who have been convicted of crimes and who are on probation are ineligible to receive PPP loans.

Commentary Jodi Avergun

This case is yet another example of the DOJ's prosecution of fraud by individuals who have submitted false PPP loan applications. It is clear that banks are utilizing Suspicious Activity Reports to identify potential fraud and that FinCEN is quickly referring the clear cases of fraud to prosecutors' offices.

Originally published July 02, 2020.

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