Man pleads guilty to stealing over $1M in PPP loans for supposed amateur basketball league

FIRST ON FOX: A antheral who utilized authorities loans meant to supply fiscal alleviation to tiny businesses pleaded blameworthy to defrauding taxpayers of much than $1 cardinal for a institution helium claimed operated an amateur hoops league, authorities said.

Jamar Johnson, an U.S. citizen, entered his plea connected Monday for his relation successful a strategy that netted him $1,047,824 successful payer funds done the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP), the Department of Homeland Security (DHS) said.

"Jamar J. Johnson exploited a captious pandemic alleviation programme for idiosyncratic gain, stealing much than $1 cardinal meant to enactment American tiny businesses erstwhile they needed it most," said Acting DHS Assistant Secretary Lauren Bis. "This blameworthy plea sends a wide message: those who defraud the American radical and effort to fell their crimes volition beryllium identified, investigated, and held accountable. DHS remains committed to protecting taxpayer-funded programs and ensuring justness for those who maltreatment them."

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Jamar Johnson pleased blameworthy to defrauding the national authorities of much than $1 cardinal done the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP).   (Reuters; Department of Homeland Security)

In 2020, Johnson submitted a PPP indebtedness exertion for a institution helium said ran the amateur league. However, erstwhile the funds were disbursed, Johnson utilized the wealth to money his lifestyle, including purchasing cryptocurrency and transferring the funds to overseas markets successful an effort to conceal the illicit proceeds.

In summation to depriving the government, the scam besides impacted tiny businesses that needed entree to authorities funds to debar shutting their doors and laying disconnected employees astatine the tallness of the COVID-19 pandemic, DHS said.

"Fraud of this quality weakens the effectiveness of national assistance programs and places an further load connected taxpayers who yet carnivore the outgo of these crimes," the section said successful a connection to Fox News Digital.

Homeland Security Investigations (HSI), which operates nether DHS, has authorization implicit definite fiscal crimes and was a progressive successful the probe that yet led to Johnson's blameworthy plea.

SBA Administrator Kelly Loeffler speaks during a House Republican quality conference. (Bill Clark/CQ-Roll Call, Inc/Getty Images)

The national authorities has cracked down connected the monolithic standard of fraud stemming from the PPP loans.

The plea announcement comes arsenic U.S. Small Business Administration connected Friday separately referred 562,000 suspected fraudulent loans totaling implicit $22.2 cardinal to the U.S. Department of Treasury for collections. 

"After extended review, and with the beardown enactment of the White House Anti-Fraud Task Force, we are taking our astir decisive enactment yet to extremity a Biden-era strategy that protected implicit 560,000 borrowers tied to much than $22 cardinal successful suspected pandemic-era fraud," SBA Administrator Kelly Loeffler told Fox News Digital.

The SBA accused erstwhile President Joe Biden of deliberately protecting suspected fraudsters by refusing to notation them to the Treasury.

In February, the SBA suspended much than 111,000 California borrowers aft uncovering $8.6 cardinal successful suspected fraudulent enactment linked to the pandemic. In total, the bureau suspended 111,620 California borrowers who received 118,489 PPP and Economic Injury Disaster (EIDL) loans, totaling $8.6 billion.

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"This staggering fig represents the astir important crackdown connected those who defrauded pandemic programs, and it illuminates the standard of corruption that the Biden Administration tolerated for years," Loeffler said astatine the time.