Related Federal Cases
Orlando, Florida Man Jailed for COVID-19 Relief Fraud
U.S. District Judge Anne C. Conway has sentenced Tomas Ziupsnys (39, Kissimmee) to five years in federal prison for conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Ziupsnys had pleaded guilty on February 3, 2022. The court also ordered Ziupsnys to forfeit $632,000, which he had obtained from his participation in the bank fraud conspiracy.
Ziupsnys conspired with Holly Lynn Urban (36, Kissimmee) to defraud multiple banks by submitting six false Paycheck Protection Program (PPP) loan applications to the Small Business Administration (SBA) and PPP-approved lenders. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP.
The PPP allowed qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses were required to use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest and principal to be forgiven if the business spent the proceeds on these expenses within a set time period and used at least a certain percentage of the loan toward payroll expenses.
Ziupsnys and Urban submitted six loan applications that contained numerous false representations about the number of employees, average monthly payroll expenses, and annual sales revenue of five companies that they purportedly owned and controlled. Ziupsnys also submitted fabricated tax, payroll, and revenue documents in support of those six fraudulent PPP applications.
Holly Lynn Urban was sentenced to two years and six months in federal prison for conspiracy to commit bank fraud. The court also ordered Urban to forfeit $632,000, which she had obtained from her participation in the bank fraud conspiracy.
This case was investigated by the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation Office of the Inspector General, and the Small Business Administration Office of the Inspector General. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
Key Facts
- State: Florida
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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