McKinney man charged in Eastern District with CARES law fraud
A former McKinney man has been charged with federal violations related to his alleged involvement in a scheme to file fraudulent loan applications aimed at securing millions of dollars in paycheck protection program (P3P) repayable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Relief, Relief, and Economic Security (CARES) Act, Acting U.S. Attorney Nicholas J. Ganjei announced today.
Sinoj Kallamplackal Joseph, 42, was charged in an indictment filed in the Eastern District of Texas with seven counts of wire fraud and three counts of misrepresenting a bank. The indictment alleges that Joseph submitted fraudulent claims for more than $ 3 million in PPP loans to an SBA-approved lender on behalf of MK Analytics, LLC; Sanbi Solutions, LLC; and KMS Traders Group, LLC. In those requests, Joseph fabricated payroll records, including the number of employees working for his companies and the amounts of his salary costs, according to the indictment. The indictment also alleges that Joseph submitted fraudulent documents in support of his claims. If convicted, Joseph faces up to 20 years in federal prison for wire fraud charges and up to 30 years in federal prison for making false statements to a bank.
“This indictment is the latest part of our district’s efforts to hold accountable those who commit fraud under the Paycheck Protection Program,” Acting US Attorney Nicholas J. Ganjei said. “The PPP has been a vital tool for US small businesses and their employees who have battled the economic fallout from the pandemic. EDTX is committed to prosecuting fraudsters who have exploited this program to the detriment of others.
On May 17, 2021, the Attorney General created the COVID-19 Fraud Enforcement Working Group to mobilize the resources of the Department of Justice in partnership with government agencies to strengthen efforts to combat and prevent the pandemic fraud. The Working Group strengthens efforts to investigate and prosecute the most culpable national and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud, among other methods, by scaling up and integrating mechanisms coordination, identifying resources and techniques for uncovering fraudulent actors and their programs, and sharing and leveraging information and knowledge gained from previous enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about alleged attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Enforcement (NCDF) hotline at 866-720 -5721 or via the NCDF web complaint form at: https: // www. .justice.gov / disaster-fraud / ncdf-disaster-complaint-form.
This case is under investigation by the Internal Revenue Service-Criminal Investigation, Small Business Administration – OIG, Federal Reserve Board – OIG, FDIC – OIG and Inspector General of the Treasury for Tax Administration. . Assistant US prosecutors Sean J. Taylor and Nathaniel C. Kummerfeld are continuing the case.
A federal indictment is just an indictment. An accused is presumed innocent until proven guilty beyond a reasonable doubt in court.