CINCINNATI, OH – Nii A. Tei, 47, of Cincinnati, is headed to federal prison for four years after admitting to a brazen scheme to defraud the Paycheck Protection Program and then hide the ill-gotten gains. Tei was sentenced in U.S. District Court on October 31st, and ordered to pay roughly $161,000 in restitution to the Small Business Administration. Federal agents also seized his bank accounts, cash, luxury watches, and other assets.
Tei wasn’t a struggling business owner seeking a lifeline during the pandemic. He presented himself as a PPP loan application “preparer,” charging hefty fees to others while systematically inflating payrolls and employee numbers on the forms. The goal was simple: maximize loan amounts. He submitted over 60 applications, and lenders fell for it 30 times, dispersing a total of more than $1.2 million. Tei personally pocketed between $1,500 and $7,000 per successful fraudulent loan.
The money didn’t go to keeping anyone employed. Court documents reveal Tei splurged on travel, luxury goods, and wire transfers to foreign accounts. But when he deposited the proceeds at his Cincinnati bank in August 2020, he attempted to structure the transactions – breaking them into smaller amounts – to avoid triggering federal reporting requirements. It was a desperate, and ultimately unsuccessful, attempt to conceal the source of the funds.
Federal investigators caught on. Tei was initially charged in September 2022 and finally pleaded guilty in April 2024. The case was a collaborative effort led by the U.S. Attorney’s Office for the Southern District of Ohio, the United States Postal Inspection Service, and the U.S. Secret Service, working through the Financial Crime Working Group Pandemic Fraud Subcommittee.
“This sentencing should serve as a warning,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio. “Those who exploit federal programs for personal gain will be held accountable.” Yvonne Dicristoforo, Special Agent in Charge of the Secret Service, added that the agency remains committed to investigating and disrupting financial crimes like this one. Assistant United States Attorney Ebunoluwa A. Taiwo prosecuted the case.
The forfeiture of Tei’s assets represents a partial recovery for taxpayers victimized by the scheme. However, the full impact of the fraud—and the ripple effects on legitimate businesses—remain a stark reminder of the widespread abuse of the PPP program. The investigation highlights the ongoing battle against pandemic-related financial crimes and the dedication of federal agencies to bring perpetrators to justice.
Related Federal Cases
- Sark Wire Corporation, PPP Fraud, Albany NY, 2023 · Pennsylvania
- Sark Wire Corporation, PPP Loan Fraud, Albany NY, 2020 · Ohio
- James Pavlounis, Social Security Administration Fraud and Tax Evasi… · Texas
- Nicole Pennington Sentenced to 44 Months for COVID Loan Wire Fraud,… · Kentucky
- Todd Faustin, Workers’ Compensation Fraud, New York NY, 2023 · Ohio
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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