David J. Newbouer, Fleeced COVID Funds, Jacksonville FL, 2023

Panama City Beach, FL – Real estate broker Chad Wade is facing the music after agreeing to pay over $4 million to settle allegations of defrauding the federal government out of COVID-19 relief funds. Wade and a web of companies he controlled allegedly cooked the books to secure multiple Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans, then used the money to fund a high-roller lifestyle and expand his business empire. This isn’t just a slap on the wrist; Wade also copped a plea to criminal charges and is staring down a potential prison sentence.

Federal prosecutors say Wade knowingly submitted false applications and doctored documents – including bogus tax returns and wage reports – to get his hands on the emergency loans intended to keep businesses afloat during the pandemic. Wade’s companies, Ideal Property Holdings, LLC; Grand Panama Resort Properties, LLC; Beach Life Properties PCB, LLC; First Texas Mortgage, LLC; PCB Limousine, LLC; South Houston Vending Company, LLC; and Emerald Oak Stables, LLC, were all allegedly used in the scheme. The feds claim Wade didn’t use the money to pay employees or keep his businesses running, but instead siphoned it off for personal gain.

The settlement requires Wade and his companies to shell out $4,027,804.69. A significant chunk – $1,579,531.25 – is earmarked as restitution, meaning some of the stolen funds will be returned. But it’s not just about the money. Wade’s guilty plea on three criminal counts – wire fraud, money laundering, and bankruptcy fraud – signals a serious escalation of the case.

The False Claims Act, the legal tool used by the feds to pursue this case, is designed to stop people from ripping off the government. It carries hefty penalties for knowingly submitting false claims. This case, according to U.S. Attorney Coody, is a clear message: stealing taxpayer money, especially during a crisis, won’t be tolerated. The feds are actively investigating COVID-related fraud and are prepared to prosecute those who exploited the system.

“This settlement demonstrates our commitment to holding accountable those who fraudulently obtained COVID-19 relief funds,” stated a representative from the SBA Office of Inspector General’s Eastern Region. “We will continue to work with our law enforcement partners to pursue justice and ensure the integrity of these vital programs.” The investigation involved collaboration between the U.S. Attorney’s Office, the Small Business Administration’s Office of Inspector General, and other federal agencies.

Assistant U.S. Attorneys are leading the criminal prosecution. Wade’s sentencing date hasn’t been set, but he’s facing serious time behind bars. The feds are making an example of Wade, hoping to deter others from attempting similar schemes. The U.S. Attorney’s Office, one of the nation’s principal litigators, has made all court documents related to the case publicly available. More information can be found on their website, or by contacting them directly.

This case underscores the widespread fraud that plagued the COVID-19 relief programs, leaving taxpayers on the hook for billions of dollars. While the recovery of funds is important, the pursuit of criminal charges sends a strong message that accountability will be sought for those who abused the system.

The Small Business Administration Office of Inspector General continues to investigate potential fraud related to COVID-19 relief programs, and encourages anyone with information about such schemes to come forward. This isn’t just about recovering money; it’s about protecting vital resources intended to help those genuinely in need.