Georgia COVID Fraud: $11M Stolen, Feds Crack Down

Savannah, GA – Nearly $11 million in pandemic relief funds were swiped by fraudsters in the Southern District of Georgia, according to federal prosecutors. The wave of schemes targeting the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) has led to over 20 enforcement actions in recent months, with the feds determined to hold those responsible accountable.

The CARES Act, passed in 2020, unleashed over $650 billion to keep businesses afloat during the COVID-19 crisis. But with that massive influx of cash came opportunity for criminals. The Southern District of Georgia, along with other districts nationwide, saw a surge in bogus applications, inflated claims, and outright theft of funds meant for legitimate small businesses struggling to survive.

From May to July 2023, U.S. Attorney Jill E. Steinberg’s office went on the offensive. Investigators uncovered a network of individuals exploiting the system, filing fraudulent applications with fabricated information and pocketing the cash. The total alleged fraud across these cases tops $10.9 million – money that could have genuinely helped businesses stay open and people keep their jobs.

One case highlights the brazen nature of the scams. Kamario Thomas of Augusta received 38 months in prison after being convicted of conspiracy to commit wire fraud and money laundering. Thomas didn’t just submit a few false applications; he filed over sixty, raking in hundreds of thousands of dollars in kickbacks. He’s been ordered to pay back the full $4,546,945 he illegally obtained.

Bernard Okojie, from McDonough, faces sentencing after a jury found him guilty of similar charges. Okojie went a step further, creating entirely fictitious companies to apply for aid, resulting in losses exceeding $3.5 million. Meanwhile, Jacqueline Somesso of Savannah received 18 months for bank fraud and attempting to cover up her crime. She managed to steal $570,736.87 and now faces restitution and forfeiture of seized funds.

The feds aren’t just pursuing criminal charges. Kyle Waldron of Douglas is facing a civil forfeiture complaint, with prosecutors seeking to seize $326,461.33 found in his bank account – money directly linked to fraudulent loan applications. This isn’t about just putting people behind bars; it’s about recovering the stolen funds and sending a clear message that this type of behavior won’t be tolerated.

The investigation involved multiple federal agencies working in concert, including the FBI, the Small Business Administration’s Office of Inspector General, and other specialized fraud units. Assistant U.S. Attorneys are leading the prosecutions, backed by Senior Litigation Counsel dedicated to combating pandemic-related fraud.

Federal prosecutors are urging anyone with information about COVID-19 relief fraud to come forward. The schemes are a stark reminder that even during a public health crisis, greed and criminal intent can flourish. The Southern District of Georgia isn’t letting these fraudsters off the hook, and the feds are vowing to continue pursuing justice for every stolen dollar.