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Miami Herald
5 days ago
- Business
- Miami Herald
Ex-Small Business Administration employee sentenced to 4.5 years for PPP fraud
A former Small Business Administration employee who learned the system from the inside and cashed in on pandemic loans for herself and others was sentenced Friday to over four years in prison for committing fraud. Malaina Chapman was also ordered to pay back about $1.3 million to her former employer by U.S. District Judge Rodolfo Ruiz in Miami federal court. Chapman, 38, of Hialeah, pleaded guilty in March to conspiracy to commit wire fraud, including submitting COVID-19 loan applications and advising a half-dozen others on filing similar requests for emergency benefits that were managed by the Small Business Administration. In that scheme, her associate, Raisha Kelly, 44, of Palm Beach County, was sentenced in May to five years in prison after being found guilty by a Miami federal jury of multiple counts of wire fraud for submitting falsified tax returns on loan applications. She was also ordered to reimburse about $445,000 to the SBA, which guaranteed pandemic loans through the agency's Paycheck Protection Program. As the coronavirus swept across the country, the two South Florida women teamed up to steal more than $1 million in federal government loans that were meant to help small businesses survive the economic collapse during the public health crisis, according to prosecutors in the U.S. Attorney's Office. Assistant U.S. Attorney Dan Bernstein noted that Chapman was making about $57,000 a year as an SBA employee when she stole not only from the agency's PPP loan program but also from other relief programs at the federal, state and local levels. Bernstein pointed out that Chapman spent the ill-gotten funds at luxury stores such as Louis Vuitton and Chanel and leased a BMW for more than $2,300 a month — not on her side businesses or employee payroll, as was required by law. In a sentencing memo, Bernstein said Chapman 'never met a trust-based government program that she didn't steal from,' calling her 'a financial predator who views government relief programs as her personal piggy bank that existed to fund her dreams of living in the luxury she felt entitled to.' Since Congress adopted the pandemic relief program run by the SBA, South Florida has been a hotbed of PPP loan fraud. Business people, law enforcement officers and hundreds of others have been convicted of stealing millions from the government program by fabricating loan applications for their companies. Several used their emergency loans to buy Lamborghinis, Teslas, Porsches and other expensive cars. READ MORE: Lambos. Jewels. How 'easy money' from Uncle Sam made Miami a feast for PPP fraudsters First ex-SBA employee charged Chapman was employed as a disaster relief specialist with the Small Business Administration from Sept. 28, 2020, through her resignation on March 18, 2021, according to court records. During her employment, Chapman fleeced the PPP and Economic Injury Disaster loan programs, as well as credit unions and pandemic-related rental programs, according to federal court records. Chapman was the first ex-SBA employee in the country to be charged with bilking the agency responsible for doling out $800 billion in PPP and other pandemic loans, according to federal authorities. Chapman advertised her side businesses in real estate and credit services on her Instagram account under the handle upscale_yourhomegirl. Chapman was accused of helping Kelly and five other members in a South Florida ring with their bogus PPP loan applications, leading to disbursements of hundreds of thousands of dollars in 2021 by private lenders backed by the SBA. With the exception of Kelly, five members of the ring agreed to plead guilty to charges of fraudulently receiving more than $800,000 in PPP loans, court records show. Chapman and Kelly received kickbacks from loan applicants, according to prosecutors. In addition, on Feb. 10, 2021, Chapman submitted a PPP loan application in the name of her company, Upscale Credit Lounge, which included a falsified tax document that reported revenue of $103,674 and a profit of $81,860. Eleven days later, a private lender approved another loan for $17,052, according to court records. On Feb. 19, 2021, Chapman, again while still employed by the SBA, submitted another PPP loan application for her business, DA TRAP. Chapman claimed that she had four employees and an average monthly payroll of $14,191. As backup material, Chapman submitted four IRS Employers Quarterly Tax Return forms, which documented the wages paid by DA TRAP. A week later, a private lender approved a loan for $35,477. All of the information in her application was fabricated, prosecutors said. In a similar manner, on April 10, 2021, Chapman submitted another PPP loan application for a property management business, falsely claiming on a tax form that it generated revenue of $123,950, with profits of $78,187, court records show. Five days later, a private lender approved that loan for $20,833. In addition to defrauding the PPP program, Chapman was also accused of exploiting the state of Florida and the city of Miami's COVID-19 Emergency Rental Assistance programs. On Oct. 13, 2021, Chapman began the process of applying for benefits under Florida's Emergency Rental Assistance program. Chapman pretended to be a tenant at a residence in Miami, according to court records. She submitted information and documents through an online portal set up to distribute benefits. On Jan. 20, 2022, Chapman submitted a written document titled '3-day notice to pay rent or quit.' The document was dated Dec. 7, 2021, showing it was signed by Chapman's mother. But her mother had died the previous year on May 25, 2020. Nonetheless, the state accepted Chapman's misrepresentations and approved payments totaling $15,000. They were made into her bank account, according to authorities. The PPP fraud cases, investigated by the U.S. Postal Service Office of Inspector General and other federal agencies, were handled by prosecutors Bernstein, Eduardo Gardea Jr. and Gabrielle Charest-Turken.
Yahoo
14-06-2025
- Business
- Yahoo
Foundation pledges $10,000 to Somerset flood recovery fund
SOMERSET, Pa. – A Johnstown-based foundation has pledged $10,000 toward a Somerset County flood recovery effort. The 1889 Foundation's $10,000 donation will be used to support organizations providing emergency shelters, food assistance and clean-up supplies in the wake of devastating flooding across southern Somerset County last month. 'At a time when so many of our neighbors are facing hardship, we believe it's essential to step forward and support the recovery process,' said 1889 Foundation President Susan Mann. 'Our communities are resilient, and together, we can rebuild stronger.' The Somerset County commissioners established the Somerset County Disaster Recovery Fund last month to assist communities – including their residents and businesses – as they worked to recover from the flood. The disaster's severity enabled state and federal resources, including Small Business Administration loan programs, to be made available for home repairs and loss recovery, among other aid – but county officials envision the county's fund filling in unmet 'gaps.' Somerset County President Commissioner Brian Fochtman described the donation as 'fantastic news' for the fund. 'It's great they are willing to do that to help their neighbor (to) the south,' Fochtman said of the organization. 'I'm almost overwhelmed by the willingness we're seeing from the community to help.' The donation puts the fund at approximately $50,000. The Community Foundation for the Alleghenies is managing the fund, while a committee of county-appointed individuals – including first responders and business leaders – will review applications to begin issuing funds this month. The first round of funding is being designated for 501(c)3 organizations, including religious organizations and government entities providing support to residents in the flood relief effort, which can request up to $10,000, according to the Community Foundation. 1889 Foundation officials said they recognize the efforts nonprofits have already put in to support people whose lives have been upended by the May 13 disaster. '(The) 1889 Foundation deeply appreciates the tireless work those organizations and all of the nonprofits organizations involved are doing to bring comfort and aid to those in need,' Mann said. Deadline approaching Somerset County Emergency Management Director Joel Landis said an application deadline of June 18 is fast approaching for organizations to apply for the first wave of Somerset County Disaster Recovery funds. Qualified nonprofit organizations and municipal government entities can apply at The region is also being encouraged to support the recovery effort by donating to the Disaster Recovery Fund at The Somerset County commissioners are planning to have the disaster fund operated as a long-term support line that will help residents in the aftermath of future disasters.
Yahoo
11-06-2025
- Business
- Yahoo
EXCLUSIVE: Kelly Loeffler, a Trump cabinet appointee who regularly appears on Newsmax, has quiet financial ties to its parent company
WASHINGTON — Former U.S. Sen. Kelly Loeffler has been a fixture on Newsmax since her confirmation in mid-February, when she became President Donald Trump's Small Business Administration administrator in February. But Loeffler and Newsmax weren't telling viewers the whole story about her relationship with the conservative cable TV news network. Loeffler, who served as a U.S. senator from Georgia between 2000 to 2021, owns 136,555 shares worth of stock in the parent company of Newsmax, according to federal financial disclosures reviewed by Fortune. She's one of several top Trump appointees — including Defense Secretary Pete Hegseth, Secretary of Education Linda McMahon and U.S. Agency for Global Media senior adviser Kari Lake — who Fortune identified as having potential financial conflicts of interest between their personal finances and public service. Loeffler appeared on Newsmax at least five times in a two-month span, between March and May this year—but at no time in these interviews did Newsmax or Loeffler discuss or disclose a matter effectively unknown to the public: Loeffler has a large, personal investment in the network. Loeffler affirmed in an April 1 filing with the Office of Government Ethics that she and her husband owned a 'preferred stock convertible note' in Newsmax, which they exchanged on March 29 for 'restricted class B common stock.' Loeffler did not name her Newsmax investment among planned divestitures as listed in a signed government ethics agreement from January 24. Nor did she divest it, as she did other investments, per a March 24 certificate of divestiture. Since then, she has not disclosed selling off any other personal investments, including her Newsmax stock. Newsmax stock has generally traded between $22 and $26 per share during May, before sliding below $20 throughout June. On March 3, Loeffler appeared on Newsmax's 'Rob Schmitt Tonight' show to trash Biden-era business policies. On March 12, Loeffler told Newsmax's 'America Agenda' show that 'people love seeing 'Made in America' back on all of our critical, essential goods, and I'm just thrilled to continue to push this across the country for President Trump's America First agenda.' On March 25, Loeffler again joined 'Rob Schmitt Tonight' to promote the efforts of the Department of Government Efficiency. 'Thank God for Elon Musk and his DOGE effort. I mean, this is a patriot who is working hard for the American taxpayer,' Loeffler declared on the show. On April 30, Loeffler told Newsmax host Greta Van Susteren there's 'no bigger fan of small business than Donald Trump.' On May 6, Loeffler appeared on Newsmax's 'Carl Higbie Frontline' show to tout the Trump administration's commitment to domestic manufacturing. In a statement to Fortune, Small Business Administration spokesperson Caitlin O'Dea said: 'Administrator Loeffler maintains full compliance with the ethics agreement executed prior to her confirmation and fully complies with every request from the SBA Office of Ethics and the U.S. Office of Government Ethics—who reviewed all of her financial holdings, including Newsmax, prior to finalizing the ethics agreement. She will proudly continue to exercise her First Amendment right as the Cabinet-level voice for America's 34 million small businesses, while upholding all ethics rules and requirements.' Newsmax did not respond to inquiries. The Society of Professional Journalists' Code of Ethics advises news organizations 'avoid conflicts of interest, real or perceived' and 'disclose unavoidable conflicts.' 'You have a responsibility to both be ethical and to appear to be ethical,' said Peter Loge, Director of the Project on Ethics in Political Communication at the George Washington University in Washington, D.C. 'Newsmax, Loeffler — they should just disclose it. There should be a note somewhere' during the interviews. As a senator, the Senate Ethics Committee investigated and subsequently cleared Loeffler of wrongdoing after she sold large amounts of stock in 2020 following her attendance at a closed-doors Senate briefing on the then-emerging COVID-19 pandemic. At the time, a Loeffler spokesperson said the then-senator, who would lose election in early 2021, 'did absolutely nothing wrong and has been completely exonerated.' Loeffler is not alone among notable Trump administration officials in maintaining financial investments that could pose conflicts of interest with their official duties, according to a Fortune review of government documents. Secretary Pete Hegseth's wife Jennifer has cut an outsized profile during her husband's turbulent Pentagon tenure—reportedly participating in a high-level government Signal chat, accompanying Hegseth to meetings with senators and directing agency social-media decisions despite holding no official role. But following her husband's January 24 nomination, Jennifer Hegseth maintained personal stock investments in more than a dozen companies with current or recent federal contracts with the Department of Defense. While she may have only held onto the stocks for a period of two weeks to two months after her husband's confirmation, the contracts held by companies in which Jennifer Hegseth invested are collectively worth billions of dollars, a Fortune review of government documents indicates. In an ethics agreement he signed in January, Pete Hegseth did not list Jennifer Hegseth's defense-contractor stocks among personal assets the couple agreed to divest in order to avoid conflicts of interest. But on Monday, the federal Office of Government Ethics released a document revealing that Jennifer Hegseth had divested from all of her defense-contractor holdings between early February and late March, just before Trump declared a spate of 'Liberation Day' tariffs that ultimately tanked the stock market. The sales were first reported by NOTUS. The Hegseths first disclosed the existence of the defense-contractor investments to the White House in January and December. The Office of Government Ethics did not officially certify the sales were 'in compliance with applicable laws and regulations' until June 6. Fortune first inquired about the status of the Hegseths' personal finances in March and made repeated inquiries in recent weeks. Had Jennifer Hegseth continued holding her defense-contractor investments, they would have posed a significant conflict of interest for Pete Hegseth, particularly given her apparent hands-on involvement with Pentagon matters, ethics watchdogs told Fortune. Jennifer Hegseth's now-jettisoned stock holdings included shares of core military weapon and defense systems companies, including Northrop Grumman Corp., Lockheed Martin Corp. and Honeywell International, according to a federal disclosure filed with the Office of Government Ethics. They also include shares of several computing, technology and telecommunications companies, such as Advanced Micro Devices, Amazon Web Services, IBM, T-Mobile, Google parent Alphabet and Thermo Fisher Scientific. Taken together, Jennifer Hegseth's defense-contractor stock investments were worth between $71,015 and $365,000 as of January, documents filed with the federal Office of Government Ethics indicate. (Appointees are only required by law to disclose their family assets in broad ranges.) The sales come at a time when Trump himself has personally set a laissez-faire standard for financial conflicts, with neither he nor his appointees in acute fear of scrutiny from federal authorities or ethics regulators. Several other high-profile Trump appointees actively hold personal investments that could pose conflicts of interest with their public service. The disclosure of Jennifer Hegseth's defense-contractor stocks also represents a reversal of what the Hegseths had previously indicated about their investments. A three-page ethics agreement signed in January by Pete Hegseth, the former Fox News television host nominated by Trump to lead the DoD, stated he will not 'participate personally and substantially in any particular matter in which I know that I have a financial interest' unless he first obtains a written waiver or exemption. This expressly includes financial interests 'imputed' to him, including 'any spouse or minor child of mine,' according to the agreement. 'It is my responsibility to understand and comply with commitments outlined in this agreement,' Pete Hegseth stated. But Hegseth's ethics agreement did not indicate his wife, Jennifer, would sell or otherwise alter the status of her defense-contractor stocks. Following Pete Hegseth's narrow confirmation on January 24, the newly minted defense secretary offered further indication that Jennifer Hegseth would retain her defense contractor stocks, checking 'N/A' for 'not applicable' on an ethics agreement compliance certification document asking whether he had 'completed all of the divestitures indicated in my ethics agreement within the time period specified.' It's unclear whether Jennifer Hegseth's defense-contractor stock holdings put Pete Hegseth in conflict with existing federal-ethics law, which provides a 'de minimis exemption' for 'disqualifying' spousal stock holdings that together do not exceed $50,000. A 2023 advisory from the Department of Defense's Standards of Conduct Office acknowledges this exemption while advising all agency personnel 'must continuously monitor for and prevent conflicts of interest between their official duties and their personal financial interests.' Jennifer Hegseth could not be reached for comment. Prior to confirmation Monday of Jennifer Hegseth's stock sales, two Pentagon spokespeople declined to answer a series of specific questions posed by Fortune about Pete Hegseth's ethics agreement, Jennifer Hegseth's stock investments, and the couple's future financial plans. They likewise declined to answer questions about Jennifer Hegseth's role advising her husband in his work as defense secretary. 'Secretary Hegseth's wife is an incredibly accomplished woman and leader. She is an asset to her husband and an advocate for military families,' Pentagon Press Secretary Kingsley Wilson told Fortune in a written statement. 'The secretary fully complies with all financial disclosure requirements and ethics regulations,' chief Pentagon spokesman Sean Parnell also said in a statement. In response to questions Monday about Jennifer Hegseth's stock sales, the Pentagon's press office wrote: 'Beyond the previous statements provided, we have nothing additional to share.' Legal or not, the Hegseths' ownership of defense-contractor stocks would have been ethically problematic, said Scott Amey, general counsel for the nonpartisan watchdog organization Project on Government Oversight. 'Public service is public trust, and it's important that anyone going into government service is representing the interest of the public and not their own personal and financial interests or the interests of former or future employers or clients,' Amey said. 'The public deserves to have trust in their government leaders that they're there for the right purposes and not there to line their own pockets.' He added: 'There's a simple way to handle this: Sell these interests and remove any questioning of the government service you're providing.' The Hegseths' personal finances were briefly raised at Pete Hegseth's January confirmation hearing, an animated proceeding dominated by accusations—and rebuttals—of Hegseth's alleged marital infidelity, domestic violence, excessive drinking, and nonprofit-business mismanagement. Hegseth has denied wrongdoing. But none of these concerns, mostly articulated by Democrats, were enough to derail Hegseth's nomination, which was approved when Vice President JD Vance cast a tie-breaking vote in favor of Hegseth. And Hegseth's financial interests—he earned a salary of $4,602,340 from Fox News prior to his appointment, according to a financial disclosure—have received little scrutiny since. 'I have failed in things in my life, and thankfully, I'm redeemed by my Lord and Savior Jesus Christ,' Hegseth said at his hearing. For Sen. Elizabeth Warren (D-Mass.), who grilled Hegseth at his confirmation hearing before the Senate Armed Services Committee, said there was only one financial choice for him to make. 'It's an egregious and unethical conflict of interest for Defense Secretary Hegseth's wife to own defense industry stocks while participating in Pentagon meetings and Signal war chats. The Hegseth family must divest,' Warren said in an email to Fortune immediately prior to confirmation of Jennifer Hegseth's stock sale. 'No one should have to wonder whether military decisions are made based on the national interest or boosting their own stock portfolio.' The Hegseths' personal finances illustrate differences in how Trump and President Joe Biden grappled with ethical standards affecting their key administration appointees. On Biden's first day in office on Jan. 20, 2021, he signed an executive order that in part required appointees to 'commit to decision-making on the merits and exclusively in the public interest, without regard to private gain or personal benefit.' Biden's 'ethics pledge' went beyond existing federal law in order to 'restore and maintain public trust in government.' Among the Biden officials affected was Lloyd Austin, who served as defense secretary for the duration of Biden's four-year term. Austin acknowledged owning a six- to seven-figures worth of stock in defense contractor [hotlink]Raytheon Technologies[/hotlink], now known as RTX. Austin served on Raytheon's corporate board until January 2021, resigning upon Biden nominating him. In his January 2021 ethics agreement with the federal government, Austin—unlike Hegseth—agreed to divest from Raytheon stock to 'avoid any actual or apparent conflict of interest.' By early March 2021, Austin had sold his Raytheon stock shares, valued at between $501,002 and $1,015,000, according to a transaction document filed with the Office of Government Ethics. A later filing indicated Austin received a cash payout of $739,726 related to the sale of his Raytheon stock. Subsequent ethics disclosures indicate Austin and his wife only invested in broad-based mutual funds and exchange-traded funds (ETFs), not individual stocks. Biden's administration wasn't trouble-free, either. For one, the Environmental Protection Agency Office of Inspector General found that Biden-era EPA Assistant Administrator Joseph Goffman 'failed to meet his ethical obligations under the federal financial conflicts-of-interest prohibition'—an allegation he denied. Trump—like Biden, or any U.S. president—is not subject to the same ethics and conflicts-of-interest laws that apply to presidential administration appointees, or many ethics laws at all. Even President Jimmy Carter, who put his peanut farm in a blind trust to avoid the spectre of financial conflict, did so voluntarily, not because of a legal mandate. And while presidents, including Trump, are required by law to file an annual disclosure detailing aspects of their personal finances, such as assets and liabilities, Trump is unlike any previous president for obliterating lines between his presidential public service and personal business interests. This is illustrated by his recent dealings with Middle Eastern nations and pursuit of cryptocurrency riches at a time when his administration is advancing pro-industry crypto policies and creating a strategic cryptocurrency reserve. Trump has promised to make the United States the 'crypto capital of the world' and 'global leader in cryptocurrency.' Trump has issued no Biden-esque 'ethics pledge' executive order during his second term. Kari Lake, U.S. Agency for Global Media senior adviser Trump empowered Lake—a former journalist and failed U.S. Senate and Arizona gubernatorial candidate—to gut the government's international broadcasting agency, which includes the flagship Voice of America. In March, Lake disclosed a stock investment of up to $15,000 in Trump Media & Technology Group, the company behind Trump's Truth Social media platform. Trump used Truth Social to announce his appointment of Lake. She also disclosed investments in about two dozen different cryptocurrencies, including Bitcoin, Etherium, Stellar, Hedera, and Dogecoin. Lake has not signed an ethics agreement with the government, or otherwise indicated she has sold, or plans to sell, these financial interests. Occasionally, the White House will grant limited-scope ethics waivers to government officials for financial reasons. It gave Health and Human Services Secretary Robert F. Kennedy Jr. one for four family investment funds among his many assets. It also gave one to Energy Secretary Chris Wright for energy-related investments he hadn't yet sold before speaking in March at global energy conference CERAWeek. There is no evidence of Lake receiving such a waiver. 'We can confirm that no additional documents exist at this time,' the U.S. Agency for Global Media's Ethics Office wrote in an email to Fortune on May 30. Representatives for Lake did not respond to questions. In a May 28 post to X, Lake wrote: 'My top priority as the Trump Administration's Senior Advisor to the agency that oversees VOA and its Grantees is to effectuate President Trump's Executive Order to reduce the federal bureaucracy and push forward his America First Agenda that will protect the American taxpayer.' Lake's crypto and Trump Media holdings underscore an inconsistent approach among Trump officials to avoid real or perceived financial conflicts. For example, Director of National Intelligence Tulsi Gabbard committed in an ethics agreement from January 15 to sell several of her four- or five-figure cryptocurrency holdings, including Bitcoin, Cronos, Solana, and Ethereum, as well as an investment in the Bitwise Bitcoin ETF Trust. She likewise agreed to sell her shares of stock in Tesla and conservative media platform Rumble Inc., each of which she valued at between $100,001 and $250,000. But like Lake, Hegseth, the defense secretary, made no such ethics pledge to sell his own investment in Bitcoin, which he valued in January at between $15,001 and $50,000. And unlike Lake, one top Trump official sold off a Trump-related investment in the name of avoiding conflicts. 'I will divest my interests in Trump Media & Technology Group, as soon as practicable but not later than 90 days after my confirmation,' now-Attorney General Pam Bondi affirmed in an ethics agreement dated January 14. In early May, Bondi made good on her pledge, divesting between $1 million and $5 million worth of Trump Media & Technology Group stock on April 2, according to a transaction filing. But Secretary of Education Linda McMahon's investment in Trump Media & Technology Group—she is a former member of the company's board of directors—is less straightforward. McMahon states in a February 5 ethics agreement she is entitled 'unvested' restricted stock units that 'will vest in nine substantially equal installments beginning March 25, 2025 through March 25, 2027.' McMahon also states she 'will divest the resulting stock from my vested RSUs as soon as practicable but not later than 90 days after my confirmation.' The Department of Education did not respond to Fortune questions about this arrangement, including whether McMahon will receive vested stock in Trump Media & Technology Group at various times through 2027, then proceed to sell it as she receives it. Dave Levinthal is a Washington, D.C.-based investigative journalist. Dave previously worked as editor-in-chief of Raw Story, deputy editor at Business Insider, and as an editor or reporter at the Center for Public Integrity, Politico, OpenSecrets and the Dallas Morning News. He has also written for The Atlantic, TIME, Rolling Stone, the Daily Beast, NOTUS and The Ankler. This story was originally featured on
Miami Herald
06-06-2025
- Business
- Miami Herald
Feds bust South Florida ring that collected $34 million in US loans during pandemic
At the peak of the pandemic, a ring of South Floridians jumped on the federal relief bandwagon and applied for more than $34 million in loans from the Small Business Administration to help them survive the public health crisis. Now, six ring members have been indicted on conspiracy, wire fraud and money laundering charges after the SBA guaranteed more than 90 of their bank-approved business loans between 2020 and 2021, federal prosecutors said Thursday. A grand jury indictment has charged the six defendants — Elaine A. Escoe, 40; Alfred L. Davis, 51; Gino J. Jourdan, 37; Cher L. Davis, 53; Latoya T. Clark, 39; and James G. McGhow, 69, — with scheming to obtain federal COVID-19 relief funds for their companies in Miami-Dade, Broward and Palm Beach counties. The indictment says their loan applications contained falsified employee numbers, payroll expenses and business revenues, along with fabricated tax documents and bank statements. As a result, the SBA authorized disbursements of about $29 million in Paycheck Protection Program loans and millions in other federal relief funds that the defendants allegedly spent on themselves, according to prosecutor Jonathan Bailyn. If convicted, the defendants face several years in prison. Since the pandemic, federal prosecutors have brought fraud charges against more than 3,200 defendants nationwide — including over 250 in South Florida, the worst-hit region — for stealing over $1.7 billion from the approved pandemic loan programs, according to the Justice Department. Congress approved the emergency programs, with about $800 billion in loans, to help struggling businesses meet payroll and other expenses. Among the loan-fraud suspects that popped up on South Florida's radar was Andre Lorquet, whose case led federal investigators to the probe of the six recently charged ring members. Before the pandemic, Lorquet opened a business, Miami ENT, and after COVID-19 swept the nation in March 2020, he used the company to amass a small fortune by obtaining PPP and other federal loans totaling $4.4 million. He spent more than $600,000 on two Teslas, a Lamborghini Urus and a Porsche Panamera GTS, according to Homeland Security Investigations. At his sentencing last year, Bailyn, the prosecutor, described Lorquet as a greedy criminal who fleeced his country at one of its weakest moments in history. Lorquet was sentenced to six years. 'We were in the middle of a pandemic and a national crisis,' Bailyn said. 'There were many people who saw this as an opportunity for charity; this defendant saw it as an opportunity for exploitation and opportunism.'
Time Business News
05-06-2025
- Business
- Time Business News
The Role Of Cp As In Business Startups And Entity Selection
Choosing the right entity for your business startup is crucial. It affects taxes, liability, and growth potential. Each entity type offers unique advantages and challenges. You need to understand them to make informed choices. This is where a Tampa Bay area CPA can guide you. A CPA will help you navigate the complexities and find the best fit for your business. They know the local regulations and market trends. They also provide insights that you might miss on your own. With their help, you can avoid costly mistakes and focus on your business goals. They explain options clearly, ensuring you understand the impact of each choice. By seeking their advice early, you set a solid foundation for success. Remember, the right decision now could save you headaches later. Prioritize your future by getting expert guidance at the start. Your business deserves the best chance to thrive. When starting a business, selecting the right entity is critical. Different entities have different tax implications and levels of personal liability. The main types of legal entities include Sole Proprietorship, Partnership, Corporation, and Limited Liability Company (LLC). Each comes with its own set of rules and benefits. Understanding the differences can help you choose wisely. Below is a simple comparison of common business entities: Entity Type Taxation Liability Operational Complexity Sole Proprietorship Personal Tax Return Unlimited Liability Low Partnership Pass-Through Taxation Joint Liability Medium Corporation Double Taxation Limited Liability High LLC Pass-Through or Corporate Taxation Limited Liability Medium Choosing an entity impacts your taxes and liabilities. A CPA provides expert guidance to help you understand these effects. They ensure compliance with state and federal laws. You can learn more about business structures at the Small Business Administration. Every entity type has unique tax obligations. A CPA explains tax implications and helps you prepare for your financial responsibilities. For instance, corporations face double taxation, while LLCs may choose their tax structure. Your choice of entity affects your legal protection. Corporations and LLCs limit personal liability, protecting personal assets. Sole proprietorships and partnerships do not offer this protection. A CPA helps you understand these risks and advises on the best path forward. Each region has its own regulations. Partnering with a local CPA ensures you comply with laws in your area. A Tampa Bay area CPA understands the local business environment. They provide insights that help you make smart decisions. Starting a business involves many decisions. Choosing the right entity is one of the most important. Understanding your options allows you to make informed choices. Working with a CPA ensures you consider all factors and select the best entity for your goals. Your business deserves expert guidance from the start. With careful planning, you can set your business up for success. Make the right choice today for a better tomorrow. TIME BUSINESS NEWS
