Baltimore City man faces federal charges for allegedly submitting fraudulent Covid-19 Cares Act relief loan applications and stealing tax preparer’s identity | USAO-MD
Baltimore, Maryland – A federal grand jury has returned an indictment charging Dana Lamar Antonio Hayes, Jr., 37, of Baltimore, Maryland, with federal charges of wire fraud, money laundering and aggravated identity theft . The indictment was released on June 23, 2022 and unsealed upon his arrest. Hayes will make his first appearance today at 3:30 p.m. in U.S. District Court in Baltimore before U.S. Magistrate Judge Beth P. Gesner.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service – Criminal Investigation, Washington, DC Field Office.
According to the six-count indictment, between March 2020 and October 2021, Hayes submitted multiple fraudulent applications for an Economic Disaster Relief Loan (EIDL Loan) and several loan applications for the Child Protection Plan. paychecks (PPP loans) to the Small Business Administration (SBA) and two financial institutions (Bank 1 and Bank 2).
Specifically, the indictment alleges that in March 2020, Hayes submitted a fraudulent EIDL loan application on behalf of his previously confiscated and recently revived company, D&L Investment Properties Inc. The EIDL loan application allegedly contained false statements regarding the number of employees and salary expenditures of D&L. Based on false and fraudulent information, the SBA approved Hayes’ EIDL application and provided loan funds to Hayes on behalf of D&L. The indictment also alleges that Hayes claimed to have business expenses of $15,000 and equipment costs of $35,000 while the business had been inactive since 2019. Additionally, in the EIDL request, Hayes reportedly said he was not on probation at the time of the filing. As alleged in the indictment, after the SBA initially denied Hayes’ EIDL application, he allegedly regularly contacted the SBA to have his EIDL application approved. Once the application was approved and the funds deposited into D&L’s bank account, Hayes reportedly transferred all loan proceeds from D&L’s bank account to his personal savings account.
Additionally, in June 2020 and January 2021, Hayes reportedly requested multiple PPP loans from Bank 1 and Bank 2 on behalf of D&L. In the PPP loan applications, Hayes allegedly included false statements regarding the number of employees, falsified tax forms, his probation status and provided false D&L salary expenses. Based on fraudulent information, Bank 1 and Bank 2 approved and provided PPP loans on behalf of D&L. As alleged in the indictment, Hayes promptly transferred the loan proceeds to his personal savings account.
The indictment goes on to allege that Hayes used the name and tax identification number of Victim 1’s preparer to submit a fraudulent Form 941 to Bank 2 without Victim 1’s knowledge or consent. consent. Victim 1 had previously been hired by Hayes to prepare personal tax returns for D&L and Hayes, however, Victim 1 claims she never prepared a Form 941 for D&L, and federal records indicate that no forms of this type has never been registered.
If convicted, Hayes faces a maximum sentence of twenty years in federal prison for wire fraud, ten years in federal prison for money laundering and a mandatory sentence of two years in federal prison followed by any other sentences handed down for theft. of aggravated identity. Actual sentences for federal crimes are generally lower than the maximum sentences. A federal district court judge will determine any sentence after considering US sentencing guidelines and other statutory factors.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to mobilize Department of Justice resources in partnership with government agencies to scale up enforcement and prevention efforts. pandemic-related fraud. The task force strengthens efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies administering relief programs to prevent fraud, among other methods, by increasing and integrating coordination mechanisms existing ones, identifying resources and techniques to uncover fraudulent actors and their agendas, 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 (NCDF) hotline at 866-720-5721 or through the complaint form online from NCDF at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. An indictment is not a verdict of guilty. An individual charged by indictment is presumed innocent unless and until proven guilty in subsequent criminal proceedings.
United States Attorney Erek L. Barron commended the FBI and IRS-CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Aaron SJ Zelinsky, who is prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and the resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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