On April 13, a federal grand jury in Los Angeles, California, returned an indictment accusing a California man of defrauding the Paycheck Protection Program of hundreds of thousands of dollars (PPP).
According to court records, 59-year-year-old Oumar Sissoko, owner of Road Doctor California, secured $7.25 million in financing on behalf of his company. Applicants have attested that the money would be used to hire staff to pay payroll to keep utility current. For an impermissible reason of around $100,000 or more, the procurement of a separate luxury vehicle, Sissoko made off with a portion of the profits from the PPP loan. Sissoko has attempted to pay $150,000 in several business accounts, while he has been variously alleged to act as CEO of these firms.
Sissoko is said to have committed four felonies on wire theft. His first hearing in federal court in California would be at a later date. In the event he is found guilty, he faces a sentence of up to twenty years in jail on each count. Federal Circuit Court judges use sentencing guidelines and other considerations in determining the penalty.
The FBI, SBA-OIG, and FDIC-OIG are investigating the case.
Assistant U.S. Attorney Alexander C.K. Wyman is trying the lawsuit in the Central District of California.
The Coronavirus Relief, Support, and Economic Security Act were passed by Congress on March 29, 2020, which aids the millions of citizens who are affected by the COVA crisis. Of small companies, relief was the provision of up to $349 billion in forgivable debt for work retention and some costs under the CARES Act, which offered a big advantage in helping the industry recover and remain in the state. Congress approved more than $300 billion in private-public partnership (PPPPPP) spending in April 2020.
Lenders are able to lend money to eligible small companies and other organizations for two years and a cost of 1% or less while using the PPP. Borrowers would use the money to care for employees, interest on their debts, housing expenses, and leases. To cause interest and principal to be forgiven, the company must use at least a portion of the PPP loan proceeds on payroll on certain cost products within a specified time span of receipt.
