Charlotte Business Owner Pleads Guilty To Wire Fraud Conspiracy For $720,000 COVID-19 Fraud Scheme

Discover the wire fraud conspiracy case involving a Charlotte business owner who pleaded guilty to a $720,000 COVID-19 fraud scheme. Learn more here!

Evan Agustin Perez, a business owner from Charlotte, pleaded guilty to wire fraud conspiracy for his involvement in a fraudulent scheme that obtained approximately $720,000 in COVID-19 relief funds. The scheme involved Perez, along with Edward Whitaker and others, submitting false and fraudulent information to the U.S. Small Business Administration (SBA) and SBA-backed lenders in order to secure Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) funds. The fraudulent loan applications contained fabricated information about Perez’s businesses’ income, number of employees, gross revenues, and expenses. As a result, the co-conspirators received a substantial amount of money in disaster relief funds. Perez’s sentencing date has yet to be determined, and the case was investigated by the SBA Office of Inspector General.

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Overview

This article provides an overview of a wire fraud conspiracy case involving a Charlotte business owner who pleaded guilty to defrauding the U.S. Small Business Administration (SBA) and SBA-backed lenders out of approximately $720,000 in COVID-19 disaster relief funds. The article discusses the background and charges, the parties involved in the conspiracy, the scheme to defraud the SBA, forgiveness applications with fabricated information, the guilty plea and pending sentencing, the investigation and prosecution, the COVID-19 Fraud Enforcement Task Force, and reporting fraudulent activities. It also includes contact information for the Western North Carolina Main Office.

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Background and Charges

Charlotte Business Owner Pleads Guilty to Wire Fraud Conspiracy

Evan Agustin Perez, a 35-year-old business owner from Charlotte, pleaded guilty to wire fraud conspiracy for obtaining fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loans. Perez conspired with Edward Whitaker and others from April 2020 to September 2021 in a scheme to defraud the SBA and SBA-backed lenders.

Amount Involved in the Fraud Scheme

The wire fraud conspiracy involved obtaining approximately $720,000 in fraudulent COVID-19 disaster relief funds for businesses controlled or affiliated with Perez. These businesses included Augie’s Wish Foundation, EMP Haircare, LLC, E.M.P. Enterprises, LLC, T.O.P. Salon Suites Inc., Touch of Precision School of Barbering, Inc., Touch of Precision Barber Lounge, LLC, and Roads to Success Early Learning Center, LLC.

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Parties Involved in the Conspiracy

Evan Agustin Perez

Evan Agustin Perez, a 35-year-old business owner from Charlotte, was the main conspirator in the wire fraud conspiracy case. He pleaded guilty to obtaining fraudulent PPP and EIDL loans.

Edward Whitaker

Edward Whitaker was another individual involved in the conspiracy. He pleaded guilty in federal court in the Eastern District of North Carolina to money laundering conspiracy for his role in a multi-million fraud scheme assisting individuals with obtaining fraudulent coronavirus disaster relief funds.

Other Co-conspirators

In addition to Evan Agustin Perez and Edward Whitaker, there were other co-conspirators involved in the wire fraud scheme. Their identities have not been disclosed.

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Scheme to Defraud the SBA and SBA-backed Lenders

Obtaining Fraudulent COVID-19 Disaster Relief Funds

The wire fraud conspiracy involved submitting fraudulent PPP and EIDL loan applications to the SBA and SBA-backed lenders. These applications and supporting documents contained false and fraudulent information regarding Perez’s businesses’ income, number of employees, gross revenues, and expenses. As a result, approximately $720,000 in disaster relief funds were obtained by the co-conspirators.

Business Entities Involved in the Scheme

Several businesses controlled or affiliated with Evan Agustin Perez were involved in the wire fraud scheme. These businesses included Augie’s Wish Foundation, EMP Haircare, LLC, E.M.P. Enterprises, LLC, T.O.P. Salon Suites Inc., Touch of Precision School of Barbering, Inc., Touch of Precision Barber Lounge, LLC, and Roads to Success Early Learning Center, LLC.

False and Fraudulent Information on Loan Applications

To successfully obtain the fraudulent PPP and EIDL loans, the co-conspirators provided false and fraudulent information on their loan applications. This included inflating income, exaggerating the number of employees, misrepresenting gross revenues, and falsifying expenses.

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Forgiveness Applications with Fabricated Information

In furtherance of the wire fraud scheme, Evan Agustin Perez, Edward Whitaker, and other co-conspirators submitted forgiveness applications for certain PPP loans that also contained fabricated information. This additional fraudulent activity aimed to ensure the retention of the fraudulently obtained funds.

Guilty Plea and Pending Sentencing

Release on Bond

After pleading guilty to wire fraud conspiracy, Evan Agustin Perez was released on bond. The specifics of the bond have not been disclosed.

Maximum Statutory Penalty

The wire fraud conspiracy offense carries a maximum statutory penalty of five years in prison. However, the actual sentencing of Evan Agustin Perez has not been scheduled at this time.

Investigation and Prosecution

SBA Office of Inspector General

The investigation of the wire fraud conspiracy case was conducted by the SBA Office of Inspector General. This office is responsible for investigating fraud and misconduct related to SBA programs and operations.

Special Assistant U.S. Attorney Eric A. Frick

Special Assistant U.S. Attorney Eric A. Frick was involved in the prosecution of the wire fraud conspiracy case. He played a key role in presenting the evidence against Evan Agustin Perez and other co-conspirators.

Assistant U.S. Attorney Daniel Ryan

Assistant U.S. Attorney Daniel Ryan also played a vital role in the prosecution of the wire fraud conspiracy case. He worked alongside Special Assistant U.S. Attorney Eric A. Frick to build a strong case against the defendants.

COVID-19 Fraud Enforcement Task Force

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force. This task force aims to enhance efforts to combat and prevent pandemic-related fraud. It marshals the resources of the Department of Justice, U.S. Attorneys’ Offices, and other government agencies to investigate and prosecute domestic and international criminal actors involved in fraud related to COVID-19 relief programs.

Reporting Fraudulent Activities

Individuals with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721. They can also submit a complaint via the NCDF Web Complaint Form on the Department of Justice’s official website.

Contact Information

Western North Carolina Main Office

The Western North Carolina Main Office is located at 227 West Trade St., Suite 1650, Charlotte, NC 28202. This is the main office for the U.S. Attorney’s Office in the Western District of North Carolina.

Stay Connected

To stay updated on the latest news and developments from the U.S. Attorney’s Office in the Western District of North Carolina, follow their official Twitter account. They also have a YouTube channel and a LinkedIn profile where you can connect with them.

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Source: https://www.justice.gov/usao-wdnc/pr/charlotte-business-owner-pleads-guilty-wire-fraud-conspiracy-720000-covid-19-fraud