A Pennsylvania man, Tommy Hawkins, has been sentenced in federal court to 65 months in prison for his leading role in a COVID-19 Paycheck Protection Program (PPP) fraud scheme. Hawkins is a former branch manager of the Conshohocken branch of a national bank. He pleaded guilty to one count of bank fraud conspiracy for fraudulently obtaining about $5 million in PPP relief funding.

This case is just another example of the results of many Department of Justice investigations into PPP fraud. The Agency takes COVID-19 relief fund fraud seriously—it even has a dedicated COVID-19 Fraud Enforcement Task Force (CFETF) that has ramped up its investigations and prosecutions. CFETF is responsible for criminally charging over 3,500 in COVID-19 fraud cases and recovering over $1.4 billion in fraudulently obtained funds.

You need a strong defense if you are facing a federal fraud charge related to COVID-19 programs or otherwise. At the LLF Law Firm, our Criminal Defense Team works tirelessly to get you the best possible outcome in your case. Contact us today at 888-535-3686 or through our online form.

The Paycheck Protection Program (PPP) Fraud Scheme

In 2020, federal legislators enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Its purpose was to provide emergency financial assistance to those suffering from the impact of the economic shutdown due to the COVID-19 pandemic. One of the initiatives in the legislation was the PPP. The PPP allowed small businesses to receive funds to continue paying their employees despite severe financial distress.

To receive funding from PPP requires completing a detailed application. Hawkins was responsible for accepting and reviewing PPP loan applications at his bank. Hawkins, with assistance from others, recruited small businesses with little or no operations to apply for PPP loan applications with false documentation. The documentation misrepresented the small business' number of employees and payroll expenses to inflate the amount the business would be eligible for.

Hawkins and his team of accomplices approved at least 38 PPP loans. The businesses he colluded with received the loan funding, then created and distributed fake payroll checks to trusted friends, who returned the money, sans their cut, to the business owner. The businesses paid $5,000 back to Hawkins for disbursing their fraudulent loan. In addition to the 65 months in prison, Hawkins was sentenced to three years of supervised release and will need to pay $5.3 million in restitution.

LLF Law Firm Can Defend You Against Fraud and White-Collar Crime Charges

PPP and other COVID-19 relief programs were confusing. Many small business owners and managers made application mistakes and are now subject to federal criminal charges and potentially life-altering consequences. Whether you have made an honest mistake or had a lapse in judgment due to the financial stresses of COVID-19, the LLF Law Firm Criminal Defense Team can help. Our Criminal Defense Team attorneys fight to get you the best possible outcome and mitigate the impact of any fraud or white-collar criminal charges you are facing. Contact the LLF Law Firm today at 888-535-3686 or using our online form.