The United States Attorney’s Office for the Western District of Pennsylvania announced Monday, September 14, the conviction of two defendants on fraud-related crimes.
The investigations were part of a nationwide enforcement campaign conducted by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration (SBA) and the SBA Office of the Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP).
“Small Business Administration-related fraud harms not only U.S. taxpayers, but also the many small businesses and owners who play by the rules and are legitimately entitled to these funds,” said United States Attorney Troy Rivetti. “As demonstrated by this nationwide enforcement surge, this type of fraudulent activity was prevalent and is still being uncovered and prosecuted years after the COVID-19 pandemic.” Our office is committed to working with our law enforcement colleagues to ensure that this highly severe criminal conduct is fully prosecuted in our district.”
From June 12 to September 1, federal prosecutors prosecuted 160 criminal defendants, including 80 newly charged individuals, resulting in a $245 million savings to American taxpayers. Attorney General Todd Blanche stated that pandemic loan relief was intended to keep American small companies alive during government lockdowns, not to feed the wallets of fraudsters.
“The defendants charged during our summer surge allegedly fabricated business, submitted false payroll and revenue claims, stole identities and concealed foreign ties on their applications – but they will now be prosecuted to the fullest extent of the law.”
In the Western District of Pennsylvania, two defendants were convicted of PPP-related fraud involving approximately $1 million in purported losses.
April Jones-Munnerlyn, 51, of Pittsburgh, Pennsylvania, pled guilty in July to one count of conspiracy to defraud the government in connection with claims. The court discovered that Jones-Munnerlyn prompted the submission of false employment tax returns for her and her husband’s businesses by claiming that the businesses paid employees when they did not, and that they were entitled to the employee retention credit as business owners. As a result, Jones-Munenerlyn got almost $400,000 in bogus returns.
Jones-Munnerlyn also allegedly submitted a bogus and fraudulent PPP loan application for her firm, for which she earned $20,833. She may receive up to 10 years in prison, a fine, or both, along with agreed-upon compensation.”This summer surge demonstrates what is possible when dedicated public servants across the country work together for a common goal,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, ensure the integrity of federal relief programs, and bring justice to those who exploited them.” We will remain steady every day, standing shoulder to shoulder with our partners, to discover fraud, pursue those culpable, and restore trust in programs designed to help American small businesses prosper.”
A federal grand jury in the Western District of Pennsylvania accused Jason Youngdahl, 44, of Brockway, Pennsylvania in August on two charges of wire fraud, two counts of money laundering and one count of theft of government money for pandemic related fraud.
Youngdahl was suspected of illegally claiming more than $540,000 from the United States SBA in Economic Injury Disaster Loans (EIDL), which were meant to give small companies with relief from the COVID-19 outbreak. He risks a sentence of up to 20 years in jail, a fine of up to $250,000, or both.
“Operation No Doze delivers a disciplined and coordinated strategy to investigating fraud in SBA’s pandemic relief programs,” stated SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are increasing our capacity to identify fraud, recover taxpayer dollars and hold responsible those who misused programs meant to support small businesses in a time of extraordinary need. This imitative demonstrates that the passing of tie does not diminish our commitment to responsibility.”
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