Three Charged in $24M PPP Loan Fraud Scheme

Three South Florida residents are facing federal charges in a brazen $24 million fraud scheme that exploited the Paycheck Protection Program during the height of the pandemic. Damion O. McKenzie, 38, of Miami Gardens; Andre M. Clark, 46, of Miramar; and Keyaira Bostic, 31, of Pembroke Pines were each charged in separate criminal complaints with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud. The trio allegedly filed fake loan applications under the CARES Act, using forged bank statements and falsified payroll tax forms to back their claims.

The fraud didn’t stop at their own applications. Prosecutors say McKenzie, Clark, and Bostic became recruiters, funneling other business owners into the scam in exchange for kickbacks from approved loans. Their roles allegedly expanded from applicants to middlemen in a coordinated network that spanned multiple states. The scheme involved at least 90 fraudulent PPP loan applications, many of which were approved and funded—diverting a minimum of $17.4 million away from legitimate small businesses.

According to affidavits filed in the Southern District of Florida, the defendants worked with a broader ring of co-conspirators, some of whom are already under indictment in the Northern District of Ohio. The operation was methodical: falsify documents, inflate payroll numbers, and cash in on taxpayer-backed relief meant for struggling workers and owners. The SBA, reeling from widespread abuse of the program, has flagged cases like this as a top enforcement priority.

U.S. Attorney Ariana Fajardo Orshan didn’t mince words: “Those who defraud the program with no regard for the effect that their actions of greed will have on the small business owners and employees who legitimately need the money will be vigorously prosecuted by my office.” Her office, alongside the Justice Department’s Criminal Division, is treating the case as a full-scale assault on emergency relief infrastructure.

Acting Assistant Attorney General Brian C. Rabbitt called the operation “an extensive nationwide scheme” fueled by illegal kickbacks. “These allegations reflect an organized effort by defendants to defraud the SBA’s PPP program on a large scale,” Rabbitt said, emphasizing that the DOJ and its partners won’t tolerate exploitation of national emergencies for personal gain. The FBI, IRS Criminal Investigation, and SBA Office of Inspector General are all on the case, signaling a multi-agency crackdown.

“Crimes like these literally rob the coffers of critically needed relief funds,” said IRS CI Special Agent in Charge Michael J. De Palma. As investigations continue, authorities warn that more arrests could follow. For now, McKenzie, Clark, and Bostic remain in federal crosshairs, facing years behind bars if convicted—reminders that pandemic profiteering comes with steep consequences.

RELATED: Nine Charged in $24M PPP Loan Fraud Scheme