Dennes Garcia, PPP Loan Fraud, Georgia 2023

A hard-hitting crime journalist at Grimy Times can now reveal that Dennes Garcia, a 28-year-old Atlanta resident, has been sentenced to 18 months in federal prison for fraudulently obtaining $285,742 through a Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act.

Garcia pleaded guilty in the Southern District of Florida on July 6 to conspiracy to commit wire fraud. According to court documents, Garcia admitted to obtaining a PPP loan of $285,742 for his company, Dhanda Corporation, based on false information about the company’s number of employees and average payroll, and based on false supporting tax documents.

Garcia also admitted that he wrote himself a check for $100,000 using the PPP loan proceeds, and further admitted that he paid more than $71,000 to an alleged co-conspirator, James Stote, as a kickback for his assistance in preparing and submitting the fraudulent loan application. In addition to his prison sentence, Garcia was ordered to pay $285,742 in restitution and $285,742 in forfeiture.

Garcia’s sentencing comes as authorities continue to crack down on individuals who have attempted to exploit the PPP for personal gain.

Meanwhile, Cindi Denton, a 63-year-old Eastvale, California resident, was sentenced on October 8 to six months in prison and 12 months of home confinement after pleading guilty in the Southern District of Florida to conspiracy to commit wire fraud on July 22. Denton admitted to obtaining a PPP loan of $491,310 for her company, Emerald Jade Solutions Inc., based on false information about the company’s number of employees and average payroll and based on false supporting tax documents.

Denton also admitted that she sent a $150,000 wire to her personal checking account using the PPP loan proceeds, and further admitted that she paid more than $98,000 to alleged co-conspirator Stote as a kickback for his assistance in preparing and submitting the fraudulent PPP loan application. In addition to her prison sentence, Denton was ordered to pay $377,883.91 in restitution and $377,883.91 in forfeiture.

Related Federal Cases