A federal jury has recently convicted a Chicago man, Quamdeen Amuwo, of fraudulently obtaining over $2.7 million in small business loans and grants through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Amuwo participated in a scheme from April to November 2020 to defraud the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. The program aimed to provide loan assistance and grants for legitimate businesses affected by the COVID-19 pandemic. Amuwo submitted multiple loan applications containing false statements and misrepresentations about the businesses’ owners, employees, revenues, costs, and dates of establishment. He caused the SBA to disburse millions of dollars into bank accounts under his control, which he used for personal benefit. Amuwo was convicted of twelve wire fraud counts and may face up to 20 years in federal prison.
Overview
This comprehensive article provides an in-depth analysis of a significant fraud case involving the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. The article covers the summary of the case, conviction and sentencing, and the announcement by authorities.
Summary of the case
Quamdeen Amuwo, a Chicago resident, has been convicted of fraudulently obtaining over $2.7 million in small business loans and grants under the CARES Act. From April to November 2020, Amuwo participated in a scheme to defraud the SBA’s EIDL program. The program aimed to provide financial assistance to legitimate businesses affected by the COVID-19 pandemic. However, Amuwo submitted false loan applications on behalf of businesses he and others purportedly owned, using false statements, misrepresentations, and bogus personal identifying information.
Conviction and sentencing
After a trial in U.S. District Court in Chicago, Amuwo was convicted on June 29, 2023, on all twelve wire fraud counts against him. The jury also determined that approximately $120,000 seized from Amuwo’s accounts should be forfeited to the government. Each count of wire fraud carries a maximum sentence of up to 20 years in federal prison. The sentencing has been scheduled for October 10, 2023.
Announcement by authorities
The conviction of Quamdeen Amuwo was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, together with Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The successful prosecution was supported by the SBA’s Office of Inspector General, highlighting their commitment to combatting fraud in government programs.
Background
To understand the context of this fraud case, it is essential to explore two key aspects: the CARES Act and the SBA’s EIDL program.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act
The CARES Act, enacted in March 2020, aimed to provide economic relief and assistance to individuals and businesses impacted by the COVID-19 pandemic. It allocated significant funding to various programs, including the SBA’s EIDL program, to help support businesses’ financial stability during uncertain times.
Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program
The SBA’s EIDL program is designed to provide financial assistance to small businesses suffering economic injury due to specific disasters, including the COVID-19 pandemic. The program offered loans and grants to cover working capital and other operational expenses, helping businesses survive the economic challenges brought on by the pandemic.
The Fraud Scheme
Quamdeen Amuwo played a significant role in executing the fraud scheme, which involved multiple deceptive tactics to acquire funds from the SBA’s EIDL program.
Participation of Quamdeen Amuwo
Amuwo actively participated in the scheme to defraud the SBA by submitting numerous false loan applications on behalf of businesses he claimed to own. His involvement in the fraudulent activities extends from April to November 2020, during which he orchestrated the scheme along with others.
Submission of false loan applications
As a key part of the fraud scheme, Amuwo submitted multiple loan applications to the SBA, seeking financial assistance for businesses under his purported ownership. These applications contained fabricated information and false statements relating to the entities’ owners, employees, revenues, costs, and establishment dates.
Misrepresentations in applications
Amuwo employed various misrepresentations in the loan applications, misleading the SBA into providing funds that were not deserved. By distorting the essential details of the businesses, such as their financial health and operational scope, he deceived the SBA into believing that these entities were genuinely suffering from the economic impact of the pandemic.
Use of false business registration forms and personal identifying information
In an attempt to bolster his fraudulent loan applications, Amuwo provided false business registration forms and fictitious personal identifying information of the purported owners. By presenting these deceptive documents, he aimed to lend credibility to the applications and further mislead the SBA into approving the loans.
Control of bank accounts and misuse of funds
Upon receiving approval for the loans and grants, Amuwo gained control over the bank accounts associated with the businesses involved in the scheme. He then proceeded to make cash withdrawals, transfers, and purchases, diverting the funds for his personal benefit instead of using them for legitimate business purposes as intended by the CARES Act.
Conviction and Sentencing
After a trial held in U.S. District Court in Chicago, Quamdeen Amuwo was found guilty on all twelve wire fraud counts against him. The jury determined that the government should also seize approximately $120,000 from Amuwo’s accounts as part of the forfeiture process. Each wire fraud count carries a maximum sentence of up to 20 years in federal prison.
The sentencing date for Quamdeen Amuwo has been set for October 10, 2023. This significant conviction serves as a stark reminder of the legal consequences individuals face for defrauding programs designed to provide critical financial support to businesses in dire need.
Announcement by Authorities
The conviction of Quamdeen Amuwo has been publicly announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. This joint announcement emphasizes the successful collaboration between law enforcement agencies in uncovering and prosecuting fraudulent activities.
Additionally, the Office of Inspector General (OIG) at the SBA played an essential role in supporting the government’s investigation and prosecution of the fraud scheme. The OIG’s involvement highlights their commitment to maintaining the integrity of government programs and protecting taxpayer dollars from fraudulent activities.
Related Content
The conviction of Quamdeen Amuwo is just one of the many cases that authorities have pursued to combat fraud and financial malfeasance. Here are three other notable cases that demonstrate the commitment to prosecute such criminal activities:
Former Illinois Department of Children and Family Services Employee and 14 Others Charged in $3.2 Million Fraud Scheme
A former employee of the Illinois Department of Children and Family Services, along with fourteen others, has been charged in a $3.2 million fraud scheme. The alleged scheme, which occurred from 2016 to 2022, involved orchestrating fraudulent activities while working for the agency in Chicago. The indictment contains forty-one counts, revealing the extent of the fraudulent conduct.
Three Board Members of Failed Washington Federal Bank in Chicago Guilty of Falsifying Records and Obstructing Regulators
An investigation into the failed Washington Federal Bank in Chicago led to the conviction of three board members. These individuals were found guilty of falsifying records and obstructing regulatory oversight during the bank’s operations. The federal investigation resulted in criminal charges against sixteen defendants, including high-ranking bank employees.
International Cyber Fraudster Sentenced to More Than 8 Years in Federal Prison
In another high-profile case, an international cyber fraudster was sentenced to more than 8 years in federal prison. Jacob Ponle orchestrated a significant fraudulent scheme resulting in actual losses exceeding $8 million and intended losses surpassing $51 million. The successful prosecution of Ponle highlights the commitment to combat cyber fraud and protect individuals and businesses from financial harm.
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- Phone: (815) 987-4444
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