A Nevada man has pleaded guilty to participating in a scheme to defraud multiple financial institutions by filing fraudulent bank loan applications that sought over $1.9 million in forgivable loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. A total of 12 Paycheck Protection Program (PPP) loan applications were submitted to seven different lenders in spring 2020.
Jorge Abramovs, 40, submitted the loan applications in the names of multiple different businesses while falsely claiming to have numerous employees earning wages. In fact, these businesses were non-operational: they had no employees and no monthly payroll.
Abramovs submitted false information about the businesses, fake tax documents and payroll schedules, and other forged documents to support the fraudulent loan applications. He fraudulently obtained $1,986,737 in PPP loans.
Rather than spending these funds to pay workers or for other specified business expenses as certified in the loan applications, Abramovs spent these funds on purchases for himself, including luxury condominiums, a Bentley, a Tesla, and payments on his home mortgage.
Abramovs further admitted that he failed to pay $475,000 in taxes owed to the IRS, relating to a different set of companies Abramovs controlled and operated. He failed to pay withheld employee federal income tax, employee and employer FICA contributions, and federal unemployment tax.
Abramovs pleaded guilty to one count of bank fraud, one count of monetary transactions in criminally derived property, and one count of willful failure to collect or pay over tax. U.S. District Judge Richard F. Boulware II scheduled sentencing for January 6, 2022. Abramovs faces a total statutory maximum penalty of 45 years in prison.
Christopher Chiou, Acting U.S. Attorney for the District of Nevada; Aaron C. Rouse, Special Agent in Charge of the FBI’s Las Vegas Field Office; Weston King, Special Agent in Charge of the Small Business Administration Office of the Inspector General’s (SBA OIG) Western Region Office; J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA); and C. Darren Lian, Special Agent in Charge of the IRS-Criminal Investigation made the announcement.
Related Federal Cases
- $7M Treasury Check Scam: Nevada Man Kyle Duncan-Carle Arrested · Nevada
- Two Men Plead Guilty to $265,000 COVID-19 Relief Heist · Nevada
- St. George Businessman Sentenced for $685K COVID-Relief Fraud · Nevada
- Rico Tomas Garcia, Hand Sanitizer Scam, CO, 2023 · California
- Kyle Archie Sentenced in Nevada Tax Theft Scheme · Texas
Key Facts
- State: Nevada
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News