A Texas woman who received nearly $ 2 million in payroll protection loans amid the ongoing coronavirus pandemic was arrested Tuesday by federal authorities on fraud charges.
Lola Shaleva Barbara Casali from Houston was accused of providing false reports to a financial institution, electronic fraud, bank fraud and involvement in illegal money transactions. according to US Department of Justice statement…
Officials say Kasali, 22, allegedly filed two fraudulent PPP loan applications for two businesses – Lola’s Level and Charm Hair Extensions – and said he had multiple employees and high payroll costs.
“However, according to the charges, no company has employees and does not pay wages corresponding to the amounts indicated in the loan applications,” the statement said.
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After receiving more than $ 1.9 million in loans, Casali transferred the funds to four additional bank accounts, officials said. Casali is expected to appear before US Justice of the Peace Christina Brian in Houston on Wednesday.
This is not the first time that a person has been charged with fraudulently obtaining PPP loans. In July, Florida man was accused of obtaining a $ 3.9 million loan to buy a Lamborghini sports car, among other things.
Report released Earlier this month, it was discovered that PPP loans originally intended for small businesses had been mistakenly allocated to firms that had already received a loan or were excluded from the program. Among other things, the report shows that about 10,000 loans were made to companies that received more than one PPP loan.
“The Treasury must improve oversight and accountability to ensure taxpayer dollars are not wasted,” said James Cliburn, DS.C., chair of the Coronavirus Crisis Special Subcommittee.
“Taxpayers don’t have to choose between getting help quickly to those in need and spending federal funds, and there are simple steps that could be taken to improve oversight and reduce fraud,” he said during a hearing when the report was released. …
Payroll protection program expired 8 Aug, without a clear plan for its expansion. The program was part of the Coronavirus Relief, Emergency and Economic Security (CARES) Act passed by Congress in March, which has offered aid to more than 5 million businesses.
Contributing: Ledyard King and Nicholas Wu, USA TODAY
