Related Federal Cases
- Pedro ‘Peter’ Bello, Conspiracy to Commit Wire Fraud, Kentucky 2013 · Kentucky
- Clinton Portis, Health Care Fraud, Kentucky 2022 · Kentucky
- Jamesy Havens, Fraud, Kentucky 2018 · New York
- Wifredo A. Ferrer, VA Travel Reimbursement Fraud, Miami FL, 2023 · Kentucky
- Joel A. Sabean, Tax Evasion and Health Care Fraud, ME 2024 · Texas
Local Man Indicted for CARES Act Fraud
Louisville, KY – A federal grand jury in Louisville, Kentucky returned an indictment on July 11, 2023, charging Andrew Prell, 56, with four counts of wire fraud and four counts of money laundering related to fraud involving the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) financial assistance program.
According to the indictment, between March 2020, and August 2022, Andrew Prell filed one fraudulent Economic Injury Disaster Loan (EIDL) application and two fraudulent applications for Paycheck Protection Program (PPP) loans, resulting in the theft of $1,687,033.
Prell utilized the entity Convergence of 4 Dimensions, a Kentucky, and Florida Limited Liability Company, to file the applications. Prell falsely exaggerated the number of employees, payroll expenses, and gross revenues of Convergence of 4 Dimensions in the fraudulent applications. In addition, Prell used the funds on unauthorized expenses under the CARES Act, including gambling and other personal expenses.
The Small Business Administration (SBA) PPP loans were designed to provide a direct incentive for small businesses who were in operation on February 15, 2020, to keep their workers on the payroll. PPP loan proceeds were required to be used by the business on certain permissible expenses. Interest and principal on PPP loans could be entirely forgiven if the business spent the loan proceeds on the allowable expenses within a designated period and used a certain percentage of the PPP loan proceeds on payroll expenses.
Prell made his initial court appearance today before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Prell faces a maximum sentence of 120 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
Assistant U.S. Attorney Bryan Calhoun is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Key Facts
- State: Kentucky
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
