A Lookout Mountain, Tn., woman has been ordered to serve 17 months in federal prison in connection with a multi-state scheme to obtain millions of dollars in Paycheck Protection Program (PPP) funds through the submission of dozens of fraudulent applications to PPP lenders.
Adiana Pierre, 39, was sentenced in Boston along with Gardy Alexandre, 51, of West Palm Beach, who got 15 months.
A third defendant, Wallace Ford, 38, of Buford, Ga., will be sentenced at a later date.
In February 2024, all three defendants pleaded guilty to one count each of conspiracy to commit wire fraud and conspiracy to engage in unlawful monetary transactions.
Prosecutors said the three conspired to submit fraudulent PPP applications on behalf of numerous actual or purported businesses and non-profit organizations across the United States – including businesses operated in Massachusetts – and to collect kickback payments from the borrowers for securing loan amounts.
Officials said, "Shortly after PPP funds first became available in April 2020, Ford began submitting PPP applications on behalf of his own businesses, Pierre, Alexandre and other borrowers. Pierre, Alexandre and others identified potential applicants and provided those applicants’ information to Ford. Ford then submitted applications for those borrowers online, fabricating employee numbers and monthly payroll expenses. Ford also submitted false wage and tax forms in support of the misrepresentations on the applications. As a result, between May and August 2020, Ford, Pierre, Alexandre and others obtained approximately $7 million in PPP funds.
"The borrowers who received PPP funds based on these fraudulent applications paid kickbacks to Ford, Pierre, Alexandre and others, commonly in amounts equal to 10 or 20 percent of the loan amount they received. Collectively, Ford, Pierre and Alexandre received over $1 million in kickback payments from borrowers."
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud.