Police Officer Charged with Federal Bank Fraud Charge Involving Paycheck Protection Program Loans | USAO-DC

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WASHINGTON – A Metropolitan Police Department (MPD) officer was charged today with a federal bank fraud charge resulting from a scheme involving $ 18,345 in Paycheck Protection Program (PPP) loans.

The announcement was made by Acting US Attorney Channing D. Phillips and Wayne A. Jacobs, Special Agent in Charge of the Criminal Division of the FBI Field Office in Washington.

Roberto Adams, 34, has been indicted by a grand jury in U.S. District Court for the District of Columbia. He was arrested on August 13, 2021, following the filing of a criminal complaint in this case and remains free on personal bail pending the continuation of the proceedings. The indictment includes a count of forfeiture seeking a judgment of money in the amount of $ 18,345.

According to the indictment, Adams made false and fraudulent statements last year to take advantage of the CARES Act (Coronavirus Aid, Relief, and Economic Security), a federal law designed to provide emergency financial assistance to millions of Americans who are suffering from the economic effects resulting from the COVID-19 pandemic. One source of relief under the CARES Act is the authorization of small business forgivable loans for job retention and certain other expenses through the PPP. The PPP allows small businesses and other eligible organizations to receive loans with a two-year term and an interest rate of one percent. Businesses must use the proceeds of the PPP loan for salary costs, mortgage interest, rent, and utilities. The PPP allows for the forgiveness of interest and principal if companies spend the proceeds of these expenses within a specified time frame and use at least a certain percentage of the loan for salary expenses.

As alleged in the indictment, Adams applied for and received approximately $ 18,345 in PPP loans through an application from a participating financial lender on behalf of SUPERKLEAN LLC, a Maryland company. On loan documents submitted to an FDIC-insured financial institution, Adams claimed to be an eligible self-employed worker with a monthly payroll of $ 7,338 and requested a forgivable loan to cover salary expenses. Adams further certified that her business was in operation on February 15, 2020 and “had employees for whom she paid salaries and payroll taxes or paid independent contractors, as shown on Form (s) 1099-MISC “. He also certified that all proceeds from the loan would be “used only for commercial purposes, as specified in the loan application”. Adams submitted a bogus and fraudulent 2019 Form 1040 Schedule C declaring $ 94,250 in gross income, $ 4,120 in expenses, and $ 88,060 in profit for SUPERKLEAN (which equates to net profits of $ 7,338 per month). The form in Annex C indicated that Adams was the sole owner and that the company provided janitorial services. Tax records confirm that this Form 2019 1040 Schedule C was never filed with the Internal Revenue Service, as was falsely and fraudulently claimed in the PPP loan application.

The loan application was approved and the funds were electronically deposited into Adams’ bank account on August 4, 2020.

An indictment is only an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.

The case was investigated by the FBI’s Washington field office. He is being sued by Assistant US Attorney Joshua S. Rothstein of the Fraud Section of the District of Columbia’s US Attorney’s Office.

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 allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https: //www.justice. gov / disaster-fraud / ncdf-disaster-complaint-form


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