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Man faces federal charges for fraudulent applications

Man faces federal charges for fraudulent applications

A federal jury returned an indictment against Dana Lamar Antonio Hayes, Jr., 37, of Baltimore, Maryland, on federal charges of wire fraud, money laundering and aggravated identity theft. The indictment was returned on June 23, 2022 and was opened following his arrest.

The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service – Criminal Investigation, Washington, DC Field Office.

According to the six-count indictment, between March 2020 and October 2021, Hayes submitted multiple fraudulent Economic Injury Disaster Relief Loan (EIDL) loan applications and multiple Paycheck Protection Plan loan applications. (PPP loans) to the Small Business Administration (SBA) and two financial institutions (Bank 1 and Bank 2).

The indictment alleges that in March 2020, Hayes submitted a fraudulent EIDL loan application on behalf of his previously seized and recently revived company, D&L Investment Properties Inc. The EIDL loan application allegedly contained false statements about the number of employees and the D&L payroll expenses. Based on false and fraudulent information, the SBA approved Hayes’ EIDL application and provided Hayes’ loan funds on behalf of D&L. The indictment also alleges that Hayes claimed business expenses of $15,000 and equipment costs of $35,000 when the business had been inactive since 2019. Additionally, within the EIDL application, Hayes allegedly stated that he was not on parole at the time. of the presentation. As alleged in the indictment, after the SBA initially denied Hayes’s EIDL application, he allegedly regularly contacted the SBA to get them to approve his EIDL application. Once the application was approved and the funds were deposited into the D&L bank account, Hayes allegedly transferred all loan proceeds from the D&L bank account to his personal savings account.

Additionally, in June 2020 and January 2021, Hayes allegedly applied for several PPP loans with Bank 1 and Bank 2 on behalf of D&L. In the PPP loan applications, Hayes allegedly included false statements about the number of employees, falsified tax forms, his probation status, and provided false D&L payroll expenses. Based on fraudulent information, Bank 1 and Bank 2 approved and made PPP loans on behalf of D&L. As alleged in the indictment, Hayes promptly transferred the loan funds to his personal savings account.

The indictment goes on to allege that Hayes used the name and tax identification number of Victim 1’s preparer to submit a fraudulent Form 941 to Bank 2 without Victim 1’s knowledge or consent. Victim 1 had previously been hired by Hayes to prepare D&L and Hayes’s personal tax returns, however, Victim 1 claims she never prepared Form 941 for D&L, and federal records indicate no such form was ever filed.

If convicted, Hayes faces a maximum sentence of twenty years in federal prison for wire fraud, ten years in federal prison for money laundering, and a mandatory two years in federal prison followed by any other sentence imposed for aggravated identity theft. Actual sentences for federal crimes are often less than the maximum sentences. A federal district court judge will determine any sentence after taking into account the US Sentencing Guidelines and other legal factors.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Control Task Force to bring together the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent fraud. related to the pandemic. The Working Group strengthens efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies charged with administering aid programs to prevent fraud, among other methods, by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques for uncovering fraudulent actors and their schemes, and sharing and leveraging information and insights gained from past enforcement efforts. For more information on the Department’s response to the pandemic, visit https://www.justice.gov/coronavirus .

Anyone with information about allegations of attempted fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or through the Complaint Form NCDF website at: https://www .justice.gov/disaster-fraud/ncdf-disaster-complaint-form . An indictment is not a finding of guilt. A person accused by indictment is presumed innocent unless and until proven guilty in some subsequent criminal proceeding.

US Attorney Erek L. Barron praised the FBI and IRS-CI for their work on the investigation. Mr. Barron thanked Assistant United States Attorney Aaron SJ Zelinsky, who is prosecuting the federal case.

To learn more about the Maryland US Attorney’s Office, its priorities, and the resources available to help the community, visit www.justice.gov/usao-md y https://www.justice.gov/usao-md/community-outreach .


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