Five Georgia business owners are facing federal charges after allegedly stealing nearly $4.1 million in Paycheck Protection Program (PPP) funds meant to keep struggling companies afloat during the pandemic. The scheme, uncovered by federal investigators, relied on forged tax forms, fake bank statements, and identical payroll claims across five shell companies—all designed to exploit emergency relief meant for legitimate small businesses.
Indicted suspects include Darrell Thomas, Andre Lee Gaines, Kahlil Gibran Green, Sr., and Bern Benoit. Each submitted or assisted in filing fraudulent PPP applications between April and May 2020 for businesses including Bellator Phront Group Inc., Gaines Reservation and Travel LLC, Impact Creations LLC, Transportation Management Services, Inc., and one additional unnamed entity. Each requested approximately $800,000 in forgivable loans, claiming between 63 and 69 employees and monthly payroll costs of $319,000 to $332,000.
The fraud unraveled when investigators discovered that all five companies submitted nearly identical IRS Form 941s for each quarter of 2019—despite never having filed such forms with the agency. In reality, none of the businesses had reported payroll taxes in 2019 or the first quarter of 2020. Four also submitted falsified bank statements showing inflated balances, with two companies claiming account activity before the accounts were even opened.
After the loans were approved and deposited, more than $2 million was funneled into two companies controlled by Darrell Thomas—Bellator Phront Group, Inc. and Elite Executive Services, Inc. The transfers were labeled as payments for payroll and rental services, but no legitimate business relationship existed between the sending companies and Thomas’s firms.
“The defendants allegedly took advantage of this critical financial assistance to fraudulently obtain funds that other small businesses desperately needed,” said U.S. Attorney Byung J. “BJay” Pak. “We will continue investigating and prosecuting those who seek to line their own pockets.” The FBI and SBA Office of Inspector General are leading the probe, emphasizing zero tolerance for pandemic relief theft.
“Trying to defraud a federal program that provides financial assistance to companies trying to keep their heads above water during a pandemic is something we are very serious about,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. The SBA’s Inspector General, Hannibal “Mike” Ware, echoed the sentiment, vowing continued crackdowns on those who weaponize desperation for personal gain.
RELATED: Beccia & Blackmore Charged in $3.3M Mortgage Fraud
RELATED: Medina Mortgage Scheme Nets Five in $4.1M Fraud
Related Federal Cases
- Cordele Woman Indicted for Stealing Identities in Tax Fraud Scheme · Georgia
- Upson Co. Woman and Sumter Co. Resident Indicted in Tax Fraud Scheme · Georgia
- Martin Pool Sentenced for Investment Fraud Scheme in Utah · Utah
- Phenix City Duo Indicted for $2.5M Tax Fraud Scheme · Alabama
- Ballwin Man Darrin Landes Pleads Guilty to Wire Fraud Scheme · Kentucky
Key Facts
- State: Georgia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News