Ten Floridians Indicted in $2.2 Million COVID-19 Relief Fraud Scheme
Ten Floridians Indicted in $2.2 Million COVID-19 Relief Fraud Scheme
TAMPA, Fla. — In a shocking revelation, ten Floridians are among eleven individuals indicted for allegedly orchestrating a scheme that siphoned over $2.2 million from COVID-19 relief funds intended to support struggling small businesses during the pandemic.
U.S. Attorney Gregory W. Kehoe announced the charges, which include conspiracy to commit wire fraud and multiple counts of wire fraud against the accused. The group, led by 40-year-old Sherell Breus from ChampionsGate, also includes individuals from various Florida cities, as well as one from Pooler, Georgia.
According to the indictment, the fraudulent activities spanned from April 2020 to June 2021. The conspirators submitted false loan applications to the Small Business Administration (SBA) for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans. These programs were designed to provide financial relief to small businesses and their employees during the unprecedented challenges posed by the pandemic.
“The intentions were for the best to get that money out so you could survive and pay and keep your employees on the payroll,” Kehoe stated. “However, individuals like these subverted that intent, turning funds meant for the good of the community into personal gain.”
The indictment details how the group fabricated businesses that were either inactive or barely operational, claiming they provided essential services like transportation, healthcare, and food. They went to great lengths to convince the SBA of their legitimacy, submitting false tax returns and listing fictitious employees and inflated business revenues.
In total, the scheme netted over $2.2 million, which prosecutors allege was used for personal expenses rather than aiding struggling businesses. Breus alone received $800,000 in fraudulent loans and collected approximately $250,000 in kickbacks from her co-conspirators.
Kehoe emphasized the difficulty of recouping the stolen funds, stating, “It’s going to be difficult to get… $2.2 million back. But we will attempt to get every dime.” He assured the public that efforts would be made to return the misappropriated funds to the rightful owners.
If convicted, each defendant could face up to 20 years in prison per count. The indictment also seeks forfeiture of $2,294,734.50 related to the fraud. In a separate case, Neil Bryant, 45, of Winter Haven, faces similar charges for defrauding the SBA through a fake EIDL application, with the government seeking $52,400 in forfeiture from his scheme.
Kehoe noted that of the $1.2 trillion in COVID relief loans disbursed by the SBA, an estimated $200 billion could be tied to fraudulent activities. With a statute of limitations of ten years for financial fraud, authorities are committed to pursuing justice for the victims of this scheme.
As the investigation continues, the case serves as a stark reminder of the challenges faced in safeguarding relief funds during a time of crisis.