BOSTON – Charles Smith Jr., the Sharon, Mass. felon, and his demolition outfit, SMI Demolition, Inc., out of Norwood, Mass., are slinging $2.01 million to settle False Claims Act charges. They’re accused of swindling the United States Small Business Administration (SBA) out of pandemic relief funds.
Smith, who pleaded guilty to two counts of mail fraud in 2018, was part owner of SMI Demolition when it applied for and received over $1.4 million in PPP loans and an Economic Injury Disaster Loan (EIDL). His company falsely certified that no owner had pleaded guilty to a felony involving fraud, a claim debunked by Smith’s own conviction.
Smith, now paying the price for his fraudulent pandemic profiteering, admitted to concocting a fake ownership transfer agreement as a smokescreen. This charade failed to prevent SMI Demolition from securing further loans from the SBA, which they claimed were forgiven, except for $150,000.
The settlement also includes claims brought under the False Claims Act’s qui tam provisions, where a whistleblower received around $200,000 as part of the deal. The case, United States ex rel. Forsyth v. SMI Demolition, Inc., and Charles Smith, Jr., No. 23-cv-10091-NMG (D. Mass.), serves as a stark reminder of the perils of pandemic relief fraud.
United States Attorney Leah B. Foley and U.S. Small Business Administration Administrator Kelly Loeffler announced the resolution. The case was handled by Assistant U.S. Attorneys Andrew A. Caffrey, III, and Brian Sullivan.
RELATED: Sharon Felon Smith, SMI Demolition Pay $2.01M for PPP Loan Fraud
Related Federal Cases
- Massachusetts Woman Pleads Guilty to Bank Fraud Scheme · Massachusetts
- Springfield Felon Sligar Sentenced to 10 Years for Gun & Drug Charges · Massachusetts
- Harvard-Trained FinServ Founder Faces Multi-Million Dollar Fraud Charges · Massachusetts
- Springfield Felon Gets 15-Year Sentence for Illegal Firearm · Massachusetts
- Springfield Felon Jamel Bolden Sentenced for Gun Threats · Massachusetts
Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News