Miami Duo Hit with $1.1M PPP Fraud Charges

Miami, Fl. – Latoya Stanley and Johnny Philus, Miami residents both aged 38 and 33 respectively, were hit with wire fraud and false statements charges after allegations that they swindled over $1.1 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The pair, who lived next door to each other, are accused of submitting fraudulent applications for loans, falsely claiming they were farmers. Their arrest was announced by U.S. Attorney Ariana Fajardo Orshan and other officials from the Justice Department’s Criminal Division.

Stanley, who ran Dream Gurl Beauty Supply LLC, is alleged to have claimed to employ 18 people while Philus, at Elegance Auto Boutique LLC, stated he employed 29. Both falsely reported income and farm operations within their homes. They were apprehended this morning and appeared before a judge.

The CARES Act, enacted on March 29, 2020, allocated up to $349 billion for forgivable loans to small businesses, with the PPP providing two-year loans at 1 percent interest. The EIDL program aids businesses with temporary revenue loss, but funds cannot be used as PPP funds.

This case underscores the importance of monitoring and investigating COVID-19 relief programs to prevent fraud, as it was investigated by the SBA-OIG, USPIS, and TITGA, with legal representation from Assistant U.S. Attorney Brooke Watson and Trial Attorney Louis Manzo.

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