Rafael Maturino, Bank Fraud, Oklahoma 2021

Rafael Maturino, a 40-year-old Broken Arrow man, was sentenced to 12 months and one day in federal prison followed by three years of supervised release for fraudulently applying for a Paycheck Protection Program (PPP) forgivable loan guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced Acting U.S. Attorney Clint Johnson.

According to the U.S. District Court records, Judge Claire V. Eagan sentenced Maturino to the prison term and ordered him to pay $97,800 in restitution to First Bank of Owasso. Maturino is required to self-surrender on July 14, 2021.

The defendant previously pleaded guilty to bank fraud after executing a scheme to defraud First Bank of Owasso when applying for a PPP loan under false pretenses on April 28, 2020. Maturino applied for a PPP loan on behalf of a company he claimed to own and operate, Maturino Enterprises, Inc. He submitted forms that misrepresented the company’s payroll expenditures, amount of taxes paid, and the number of people employed.

In his plea agreement, Maturino admitted that he falsely represented in a PPP “Borrower Application Form” submitted to First Bank of Owasso that Maturino Enterprises had an average monthly payroll of $39,152.92; had 5 employees; and was in operation on February 15, 2020. He further represented that he would use the requested loan funds to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule. Maturino then signed the application form certifying the information was truthful.

The CARES Act is a federal law enacted on March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program (PPP). In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Paycheck Protection Program loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use a certain percentage of the loan towards payroll expenses.

Assistant U.S. Attorney Victor A.S. Régal prosecuted the case.

To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Source: https://www.justice.gov/usao-ndok/pr/broken-arrow-man-sentenced-federal-prison-after-fraudulently-applying-paycheck