LAS VEGAS (KTNV) — A 49-year-old man from Henderson has been arrested for utilizing cash he obtained by way of the Paycheck Safety Program to purchase a home.
13 Motion Information obtained the next press launch Wednesday morning:
A Nevada man has been arrested in reference to allegations that he fraudulently obtained roughly $500,000 from the Paycheck Safety Program (PPP) mortgage and the Financial Damage Catastrophe Mortgage (EIDL) program, after which laundered the funds by way of family and friends as a way to purchase a home.
Appearing Assistant Legal professional Basic Brian Rabbitt of the Justice Division’s Felony Division, U.S. Legal professional Nicholas A. Trutanich of the District of Nevada, Particular Agent in Cost Aaron C. Rouse of the FBI’s Las Vegas Area Workplace, Particular Agent in Cost Tara Sullivan of the IRS-Felony Investigation (IRS-CI) Las Vegas Area Workplace, and Particular Agent in Cost Weston King of the Small Enterprise Administration’s Workplace of the Inspector Basic (SBA-OIG) made the announcement.
Brandon Casutt, 49, of Henderson, Nevada, is charged in a prison criticism within the District of Nevada, unsealed Tuesday, with making false statements to a monetary establishment, wire fraud, financial institution fraud, concealment cash laundering, and interesting in illegal financial transactions. He was arrested on Friday and made his preliminary look Tuesday afternoon earlier than U.S. Justice of the Peace Decide Elayna J. Youchah in Las Vegas.
The criticism alleges that Casutt perpetrated a scheme to submit fraudulent EIDL functions to the SBA and PPP mortgage functions to federally insured banks. The SBA ensures the loans for COVID-19 reduction by way of the PPP underneath the Coronavirus Assist, Aid and Financial Safety (CARES) Act. The CARES Act additionally authorizes the SBA to supply an EIDL of as much as $2 million to eligible small companies experiencing monetary disruption because of the COVID-19 pandemic.
Two of those fraudulent functions obtained funding: (1) a PPP mortgage for about $350,000 within the identify of a enterprise known as Sky DeSign; and (2) an EIDL for about $150,000 within the identify of a charity known as Skyler’s C.F. Basis, which is supposedly dedicated to elevating consciousness about cystic fibrosis. The mortgage functions indicated that every entity had quite a few staff, important payroll bills, and substantial income. In response to the criticism, neither entity has staff nor pays any wages. And Skyler’s C.F. Basis had nowhere close to the $600,000 income in 2019 that Casutt listed on the entity’s EIDL software.
In response to the criticism, Casutt laundered the PPP funds by writing checks to 23 totally different individuals — mates, members of the family, associates, and himself — every within the quantity of $eight,330 with “again pay” and “pandemic pay” within the checks’ memo strains. Casutt then had the funds diverted to a checking account within the identify of Skyler’s C.F. Basis and used them, together with the EIDL funds, to buy a $400,000 home in Henderson, into which he and his household moved on the finish of June 2020.
The CARES Act is a federal legislation enacted March 29. It’s designed to supply emergency monetary help to hundreds of thousands of People who’re struggling the financial results ensuing from the COVID-19 pandemic. One supply of reduction supplied by the CARES Act is the authorization of as much as $349 billion in forgivable loans to small companies for job retention and sure different bills by way of the PPP. In April 2020, Congress approved over $300 billion in further PPP funding.
The PPP permits qualifying small companies and different organizations to obtain loans with a maturity of two years and an rate of interest of 1 %. Companies should use PPP mortgage proceeds for payroll prices, curiosity on mortgages, lease and utilities. The PPP permits the curiosity and principal to be forgiven if companies spend the proceeds on these bills inside a set time interval and use no less than a sure share of the mortgage in direction of payroll bills.
The EIDL program is designed to supply financial reduction to small companies which are presently experiencing a brief lack of income. EIDL proceeds can be utilized to cowl a big selection of working capital and regular working bills, equivalent to continuation of well being care advantages, lease, utilities and glued debt funds. If an applicant additionally obtains a mortgage underneath the PPP, the EIDL funds can’t be used as the identical function because the PPP funds.
A federal prison criticism is merely an accusation. A defendant is presumed harmless till confirmed responsible past an affordable doubt in a court docket of legislation.
The FBI, IRS-CI, and SBA-OIG investigated the case. Assistant Chief William E. Johnston of the Felony Division’s Fraud Part and Assistant U.S. Legal professional Jamie Mickelson of the U.S. Legal professional’s Workplace for the District of Nevada are prosecuting the case.