Barrie Osborne, Loan Fraud, Pennsylvania 2021

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Florida Tax Preparer Charged in $7 Million Loan Scheme

PHILADELPHIA – A Florida tax preparer has been charged with a $7 million loan fraud scheme in Pennsylvania. According to officials, Barrie Osborne, 76, of Celebration, Florida, was charged by Indictment with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, and conspiracy to commit money laundering.

The Indictment alleges that, beginning in about January 2018 until August 2021, Osborne conspired with at least eight California-based individuals to apply for SBA, PPP, and EIDL loans on behalf of their respective businesses. All of the businesses in question were dormant companies or companies with limited business operations. In exchange for fees, Osborne allegedly made the businesses appear to be functioning companies with operations and employees by creating fake documents, including fake bank statements and fictitious tax documents.

The defendant also provided a “script” to scheme participants to use in calls with lenders. Osborne and the California co-conspirators allegedly obtained over $7.3 million in PPP, EIDL, and SBA loans.

The Indictment further alleges that the defendant created “forgiveness plans” which were designed to disguise the fraud proceeds as payroll expenses in order to make it appear that each loan recipient was meeting the SBA requirement to devote a percentage of the PPP funds to payroll. This increased the likelihood that each loan recipient – including one of the defendant’s own companies – would qualify for loan forgiveness.

“PPP, SBA and EIDL funds are intended to help American small-businesses continue paying their employees, even if revenues have dropped dramatically,” said U.S. Attorney Williams. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. As alleged, Osborne led a conspiracy to fraudulently obtain $7 million in funds that could have helped struggling businesses and individuals.”

This case was investigated by the Small Business Association Office of Inspector General, IRS-Criminal Investigation Philadelphia, Homeland Security Investigations’ Philadelphia Field Office, and the FBI’s Philadelphia Field Office, and is being prosecuted by trial attorneys David A. Stier and Patrick B. Gushue of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant United States Attorney Judy G. Smith for the Eastern District of Pennsylvania.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the DOJ’s 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.