Bank Boss Caught Laundering $5M PPP Scam

CAMDEN, N.J. – A former bank manager has admitted to organizing a multistate COVID-19 relief program fraud scheme, netting at least $5 million in fake Paycheck Protection Program (PPP) loans.

Tommy Hawkins, 61, of Philadelphia, pleaded guilty to one count of bank fraud conspiracy before U.S. District Judge Karen M. Williams. Hawkins, the former branch manager of a national financial institution’s Conshohocken, Pennsylvania, branch, worked with other individuals to recruit companies with little or no operations to apply for PPP loans.

Between 2020 and 2021, Hawkins helped the recruited individuals submit PPP loan applications containing false representations about the companies’ number of employees and payroll expenses. The applications also included false documentation, including tax forms. As a result, Hawkins’ bank approved at least 38 PPP loans and disbursed approximately $5 million.

Hawkins received incentive compensation through the bank for opening business bank accounts for the companies that received fraudulent PPP loans. He also had an agreement with others to pay him $5,000 of the loan proceeds for each PPP loan he helped to obtain.

Separately, Sieff Robert Sargeant, 44, of Island Park, New York, pleaded guilty to one count of money laundering after his business received a PPP loan based on a fraudulent application submitted through Hawkins’ branch. Sargeant then paid another individual to create fake payroll checks, which he used to launder the proceeds.

The count of conspiracy to commit bank fraud is punishable by a maximum of 30 years in prison and a $1 million fine. The count of money laundering is punishable by a maximum of 20 years in prison and a $500,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Hawkins’ sentencing is scheduled for October 3, 2024; Sargeant’s sentencing is scheduled for October 2, 2024.

U.S. Attorney Philip R. Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, New York Region, under the direction of Special Agent-in-Charge Patricia Tarasca; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Bradley Parker; and special agents of the U.S. Attorney’s Office.

U.S. Attorney Sellinger said, “The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to those suffering the economic effects of the COVID-19 pandemic. Unfortunately, individuals like Hawkins and Sargeant took advantage of this relief program for their own gain, causing harm to the very individuals and businesses the program was intended to help.”

This case is the result of an investigation by the Federal Deposit Insurance Corporation – Office of the Inspector General, the FBI, the Social Security Administration, and the U.S. Attorney’s Office.

The maximum potential sentences are based on the charges to which Hawkins and Sargeant pleaded guilty. The actual sentences will be determined by the court at sentencing, which is scheduled for October 2024.