Tax Preparer Barrie Osborne Accused of $7M PPP Loan Fraud

PHILADELPHIA – The grimy details of a colossal $7 million Paycheck Protection Program (PPP) loan fraud have emerged, with 76-year-old Barrie Osborne of Celebration, Florida, at the center of the scheme. United States Attorney Jennifer Arbittier Williams and Assistant Attorney General Kenneth A. Polite Jr. announced that Osborne has been charged by Indictment with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, and conspiracy to commit money laundering.

According to the Indictment, Osborne, a seasoned tax preparer, conspired with at least eight California individuals to deceitfully apply for SBA, PPP, and EIDL loans on behalf of dormant or minimally operating companies. For a fee, he concocted fraudulent documents, including falsified bank statements and fictitious tax records, to make these businesses appear viable. Osborne is alleged to have secured over $7.3 million in PPP, EIDL, and SBA loans.

The defendant also crafted “forgiveness plans” to deceive lenders into believing the loan recipients were adhering to Small Business Administration requirements for payroll funding. This tactic aimed to increase the chances of loan forgiveness for each recipient, including one of Osborne’s own companies.

“PPP, SBA, and EIDL funds are intended to help struggling American small businesses,” Williams sternly stated. “Osborne’s alleged scheme not only exploited these vital funds but also took advantage of those who truly needed them.”

The COVID-19 Fraud Enforcement Task Force, established by the Attorney General on May 17, 2021, is tasked with combating such fraudulent endeavors. The task force, which includes resources from various government agencies, aims to investigate and prosecute criminals responsible for pandemic-related fraud.

This case was meticulously investigated by the Small Business Association Office of Inspector General, IRS-Criminal Investigation Philadelphia, Homeland Security Investigations’ Philadelphia Field Office, and the FBI’s Philadelphia Field Office. Trial attorneys David A. Stier and Patrick B. Gushue, along with Assistant United States Attorney Judy G. Smith for the Eastern District of Pennsylvania, are prosecuting the case.