Bank Manager Admits Coordinating $5M COVID-19 Relief Fraud Scheme

Bank Manager Admits Coordinating $5M COVID-19 Relief Fraud Scheme

CAMDEN, N.J. – In a shocking case of COVID-19 relief program abuse, a former bank manager has admitted to orchestrating a massive $5 million fraud scheme, using his position to help individuals obtain at least 38 fraudulent Paycheck Protection Program (PPP) loans.

Tommy Hawkins, 61, of Philadelphia, pleaded guilty before U.S. District Judge Karen M. Williams to one count of bank fraud conspiracy. Hawkins worked as the branch manager of the Conshohocken, Pennsylvania, branch of a national bank that was accepting PPP loan applications. He allegedly worked with Eric Rivera, Lisa Smith, and others to recruit individuals who owned companies with little or no operations to open bank accounts at Hawkins’ branch and apply for PPP loans.

The applications contained materially false representations about the companies’ number of employees and payroll expenses, and also included false documentation, including tax forms. Based on these applications, 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 and also had an agreement with Rivera and Smith for them to pay Hawkins $5,000 of the loan proceeds for each PPP loan that Hawkins helped to obtain.

In a separate but related case, a New York man, Sieff Robert Sargeant, 44, of Island Park, New York, pleaded guilty to one count of money laundering. Sargeant received a PPP loan based on a fraudulent application submitted through Hawkins’ branch and then laundered the proceeds by paying another individual to create fake payroll checks. The fake payroll checks were distributed to a friend, who cashed the checks and returned the majority of the cash to Sargeant.

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 Oct. 3, 2024; Sargeant’s sentencing is scheduled for Oct. 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 for the District of New Jersey for their work on this case.