GREENSBORO, NC – In a stark reminder of the dark underbelly of financial corruption during the pandemic, BENNETT ABABIO from Maryland has entered a guilty plea to one-count of conspiracy against the United States. The charges stem from a brazen scheme to defraud the Small Business Administration (SBA) out of approximately $3.6 million through fraudulent Paycheck Protection Program (PPP) loan applications.
According to court documents, ABABIO’s criminal enterprise spanned from May 2020 until December 2021. During this time, he conspired with others to file falsified PPP loan and forgiveness applications, including for himself and a resident of Greensboro, NC. ABABIO was the owner or partial owner of five companies for which he secured $2,581,833 in PPP loans by fabricating payroll expenses. His fraudulent activities also facilitated over $1 million in additional PPP loans to his clients.
The SBA’s guarantee under the Coronavirus Aid, Relief, and Economic Security (CARES) Act was exploited by ABABIO through these deceitful applications. Sentencing is set for Tuesday, September 10, 2024, at 10:30 a.m., in Greensboro, before Judge William L. Osteen, Jr. Should he be found guilty, ABABIO faces a maximum sentence of five years in prison, three years’ supervised release, and substantial monetary penalties.
This investigation is being spearheaded by the Internal Revenue Service – Criminal Investigation division, while Assistant U.S. Attorney Ashley Waid is prosecuting the case. The swift and decisive action taken by federal authorities underscores their commitment to holding those accountable who abuse government aid programs for personal gain.
As the pandemic continues to unravel its financial repercussions, cases like ABABIO’s serve as a chilling testament to the lengths some will go to in order to enrich themselves at the expense of legitimate business owners and taxpayers alike.
The grim tale of ABABIO’s criminal endeavors is another chapter in the ongoing saga of white-collar crime and financial chicanery that has emerged during these unprecedented times. The public’s vigilance against such fraud remains a crucial component in safeguarding the integrity of our economic recovery efforts.
Related Federal Cases
- Maryland Man Cashes in on \\$3.6M COVID Relief Scam · North Carolina
- Surrogacy Group Boss Blosser Hits with Federal Wire Fraud Charges · North Carolina
- York Man Tanner Uffelman Sentenced to 13 Months for Pandemic Unemployment Fraud · Pennsylvania
- Ricardo Curry Convicted of Bankruptcy Fraud · North Carolina
- Conspirators Sentenced in Medicaid Fraud Scheme · North Carolina
Key Facts
- State: North Carolina
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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