Texas woman charged with $1.2 million PPP loan program fraud – InsuranceNewsNet

A Waxahachie woman who allegedly defrauded pandemic-era financial programs out of more than $1.2 million has been federally charged, U.S. Attorney for the Northern District of Texas, Chad E. Meacham, announced.

Annette Bryant, 63, was charged last Tuesday with one count of wire fraud, eight counts of making false statements to a bank and one count of conducting monetary transactions on property from illegal activities. She made her first appearance before US Magistrate Judge Toliver on Monday.

According to the indictment, Ms. Bryant – the sole owner and operator of a number of LLCs, including Processing Services, Inspirational Tax Services LLC, Neighborhood TX Inspections LLC, JJ&JJ Remodeling and Roofing LLC and JAM Business and Tax Services – – fraudulently applied for and obtained six Paycheck Protection Program loans (https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program ) (PPP) totaling $848,586 and four economic loans Injury Disaster Loan (https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl) (EDIL) Loans of the program totaling $359,500. She also allegedly attempted to secure two additional PPP loans worth $411,160 which were never funded.

The indictment alleges that Ms. Bryant included false statements in PPP loan applications submitted to financial institutions administering the PPP, including InterBank, Comerica, Regions Bank and others. She allegedly inflated the number of employees at her businesses, inflated their payrolls, and even lied about how many businesses she owned. She also allegedly included false statements in EIDL loan applications submitted to the Small Business Administration, misrepresenting her company’s gross earnings.

Ms. Bryant allegedly went so far as to send tax documents from financial institutions which she said had been submitted to the IRS but were never filed. These bogus forms, including IRS Form 1040 (https://www.irs.gov/forms-pubs/about-form-1040x) (Individual Income Tax Return), IRS Form 940 (https://www.irs .gov/forms-pubs/about-form-940) (Employer’s Annual Federal Unemployment Tax Return) and IRS Form 941 (https://www.irs.gov/forms-pubs/about- form-941) (Employer’s Quarterly Federal Income Tax Return) allegedly contained false information about his activities and personal income.

An indictment is only an allegation of criminal conduct, not evidence. Like all defendants, Ms. Bryant is presumed innocent until proven guilty in court.

If convicted, she faces up to 30 years in federal prison for each count of making a false statement to a bank, 20 years for wire fraud, and 10 years for engaging in monetary transactions in property from of illegal activities. In the event of conviction, it will be required to renounce the financial product of the scheme or the property attached to it.

The United States Treasury Inspector General for Tax Administration, the Dallas Field Office of the Office of the Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG), and the Office of the Inspector General of Small Business Administration (SBA-OIG) conducted the investigation. Assistant US Attorneys Marty Basu and Fabio Leonardi are pursuing the case.

The Paycheck Protection Program (PPP) and the Expanded Economic Disaster Loan Program (EIDL) have been authorized under the CARES (Coronavirus Aid, Relief, and Economic Security) Act (https://home .treasury.gov/policy-issues/coronavirus/about-the-cares-act), a federal law enacted on March 29, 2020, to provide emergency financial assistance to Americans suffering economic hardship due to the COVID pandemic -19. The PPP provided forgivable loans to small businesses to cover payroll, rent, and some other expenses; EIDL provided partially repayable loans to small businesses to cover operational expenses, including accounts payable, as well as salaries, mortgages and other bills.

Contact:

Erin Dooley Publicist 214-659-8707 [email protected]

Updated on November 11, 2022

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