GREENBELT, MARYLAND – A federal grand jury has returned an indictment charging Rudolph Elwood Brooks, Jr., age 45, of Bowie, Maryland, with federal wire fraud and money laundering charges.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Shimon R. Richmond of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC OIG); Acting Special Agent in Charge Darrell Waldon of the Internal Revenue Service – Criminal Investigation (IRS-CI), Washington, D.C. Field Office; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Inspector General Hannibal “Mike” Ware of the U.S. Small Business Administration Office of Inspector General (SBA OIG).
The nine-count indictment charges Brooks with three counts of wire fraud relating to Brooks’ transmission of loan applications submitted through the Paycheck Protection Program (“PPP”) in the names of three entities controlled by Brooks: Cars Direct by Gavawn HWD Bob’s Motors (“Cars Direct”), Madaro, LLC (“Madaro”), and Kingdom Tabernacle of Restoration of Ministries (“Kingdom Tabernacle”).
As alleged in the indictment, Brooks electronically submitted PPP loan applications in the name of Cars Direct, Madaro and Kingdom Tabernacle containing false statements regarding the number of employees and payroll expenses of the entities. In support of the PPP loan applications, Brooks also submitted false tax forms not on file with the Internal Revenue Service.
On May 9, 2020, the Cars Direct PPP loan was approved and on May 12, 2020 $1,556,589 in loan proceeds were deposited into an account controlled by Brooks. On May 11, 2020, the Madaro PPP loan was approved and on May 13, 2020 $204,266 in loan proceeds were deposited into an account controlled by Brooks. On May 14, 2020, the Kingdom Tabernacle PPP loan was approved and on May 15, 2020 $1.8 million in loan proceeds were deposited into an account controlled by Brooks.
In total, on the basis of the false and fraudulent PPP loan applications, Brooks obtained at least $3,560,855 in PPP loan proceeds. Brooks used the PPP loan proceeds for his personal benefit and on payments and purchases not permissible under the Paycheck Protection Program, including payments for a residence, the purchase of a luxury vehicle, purchases at restaurants, retail stores, grocery stores, cash withdrawals and transfer to other bank accounts controlled by Brooks.
The indictment also charges Brooks with three counts of money laundering for wire transfers derived from the criminal proceeds of the PPP loans that were used for the purchase of a 2018 Tesla Model 3, a real property in Baltimore, Maryland, and a real property in Upper Marlboro, Maryland. The indictment also charges Brooks with three counts of money laundering for the April 5, 2021 purchase of three $100,000 cashier’s check payable to “Rudolph Brooks” from the proceeds of the fraudulent PPP loans.
To date, the United States has recovered more than $1.6 million in proceeds of the fraudulent PPP loans as well as a 2018 Tesla Model 3 purchased with proceeds of the Cars Direct PPP loan. As alleged in the indictment, if convicted, the United States will seek forfeiture of the seized property as well as the Upper Marlboro, Maryland property purchased with fraud proceeds.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering from the economic consequences of COVID-19. The CARES Act authorized up to $659 billion in funds for emergency loans, disaster loans, and other forms of assistance to address the economic impacts of the pandemic. Brooks’ alleged actions represent a significant abuse of the relief funds intended to help small businesses and individuals during the pandemic.
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- William Frazier Sentenced to 51 Months for Wire Fraud, Midland GA, … · Washington
- Dr. George Robert Vito, Bankruptcy Fraud, Macon GA, 2013 · Alabama
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Key Facts
- State: Maryland
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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