Nine Charged in $24M PPP Loan Fraud Scheme

Phillip J. Augustin, 51, of Coral Springs, Florida, and eight others—including two Northeast Ohio men—are charged in a $24 million fraud scheme that exploited the Paycheck Protection Program (PPP) during the height of the pandemic. Federal prosecutors unsealed five criminal complaints this week, exposing a network of defendants who allegedly filed fraudulent loan applications under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, targeting forgivable loans backed by the Small Business Administration (SBA).

Alongside Augustin, Wyleia Nashon Williams, 44, of Ft. Lauderdale, Florida, faces charges of wire fraud, bank fraud, and conspiracy to commit both. James R. Stote, 54, of Hollywood, Florida, and Ross Charno, 46, also of Ft. Lauderdale, were charged June 24, 2020. Deon D. Levy, 50, of Bedford, Ohio, and his son Abdul-Azeem Levy, 22, of Cleveland, Ohio, were charged June 8, 2020, with wire fraud and conspiracy. All nine defendants are accused of fabricating payroll records, inflating employee counts, and submitting false tax documents to qualify for relief funds never meant for them.

Three additional defendants—Damion O. McKenzie, 38, of Miami Gardens, Florida; Andre M. Clark, 46, of Miramar, Florida; and Keyaira Bostic, 31, of Pembroke Pines, Florida—were charged August 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy. Authorities allege these individuals acted as co-conspirators, submitting applications through shell companies and laundering funds through personal accounts, vehicles, and luxury purchases while small businesses struggled to survive.

U.S. Attorney Justin Herdman for the Northern District of Ohio said the defendants sought profit amid national suffering. “As many of our family, friends and neighbors suffered adverse economic consequences from our nation’s response to a global pandemic, these defendants were allegedly looking for ways to profit off of our collective troubles and fears,” Herdman stated. “The Justice Department will continue to work long hours with our federal, state, and local partners to find and prosecute those who may have defrauded the public of funds meant to help the American economy recover from this once-in-a-century catastrophe. “

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division added, “The defendants are alleged to have coordinated a scheme to fraudulently obtain millions of dollars in PPP loans and to receive kickbacks for filing fraudulent loan applications for others.” FBI SAC Eric B. Smith emphasized the betrayal: “While the entire world was focused on dealing with a pandemic, it is alleged that these individuals were selfishly focused on exploiting programs designed to help people survive financially during the shutdown. “

IRS-CI Cincinnati Field Office SAC Bryant Jackson and SBA OIG Inspector General Hannibal “Mike” Ware confirmed the probe is ongoing. Investigators are tracking transfers, shell entities, and digital trails to claw back every dollar. The case is being prosecuted by the U.S. Attorney’s Office for the Northern District of Ohio and the Justice Department’s Criminal Division, Fraud Section. Anyone with information is urged to contact the SBA OIG hotline. The charges carry maximum penalties of 30 years in prison for bank fraud and 20 years for wire fraud, with additional time for conspiracy and obstruction. “