Thomas Smith, Bank Fraud, Wisconsin 2021

State: Wisconsin
Category: Fraud &#038; Financial Crimes
Source: <a href="https://www.justice.gov/usao-edwi/pr/pewaukee-man-pleads-guilty-directing-covid-relief-fraud-scheme" style="color:#cc0000;" target="_blank" rel="nofollow noopener">DOJ Press Release ÃƒÂ¢Ã¢â‚¬Â Ã¢â‚¬â€

A 46-year-old Pewaukee man has pleaded guilty to bank fraud for his role in a COVID-relief scheme that saw him fraudulently obtain over $1 million in Paycheck Protection Program (PPP) loans.

Thomas Smith, of Pewaukee, Wisconsin, pleaded guilty on February 23, 2021, to one count of bank fraud. According to court documents, Smith fraudulently sought over $1.2 million in PPP loans through applications to an insured financial institution on behalf of eight different companies.

Smith admitted that he caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Based on these representations, the financial institution approved and funded over $1 million in loans.

According to plea documents, Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses.

Smith’s sentencing is scheduled for June 2, 2021.

The CARES Act, a federal law enacted on March 29, 2020, provided emergency financial assistance to millions of Americans suffering the economic effects of the COVID-19 pandemic. The PPP was designed to provide forgivable loans to small businesses for job retention and certain other expenses.

This case was investigated by the SBA-OIG, FBI, FDIC-OIG, and IRS-CI. Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.

The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases.

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