From the National Law Review:
"The next phase of enforcement can be viewed as beginning last month when federal prosecutors in New York charged Rafael Martinez, the chief executive officer of a PPP lender, with multiple federal crimes for what might be termed a PPP fraud triple-play: (1) making misrepresentations on an application for a PPP loan for his own business, MBE Capital Partners, LLC; (2) misrepresenting MBE’s qualifications to the SBA for MBE to become a non-bank PPP lender with the SBA; and (3) making further representations to obtain collateral for use in borrowing through a Federal Reserve liquidity facility known as the Payment Protection Program Liquidity Facility (PPPLF). The crimes charged in that case include wire fraud, bank fraud, and making false statements to the SBA. The case, which appears to be the first criminal prosecution of a PPP lender, was highly touted by the DOJ as a major step in combatting COVID-19 relief fraud."
The total amount stolen via this boondoggle will never be known by mortals.
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