FOX 2 - A 37-year-old Ann Arbor tax preparer pleaded guilty Tuesday to orchestrating a Paycheck Protection Program scheme, stealing more than $2.2 million from the Small Business Administration.
The backstory:
Jawan Simpson, who is also a certified public accountant, pleaded guilty to one count of wire fraud, which carries a maximum penalty of 20 years in prison, according to the United States Attorney's Office for the Eastern District of Michigan.
According to the plea agreement, Simpson promised family members, friends, and tax preparation clients (including Amtrak employees) that, in exchange for a fee of $2,000-$3,000, he could help them qualify for pandemic relief loans that would be forgiven by the federal government.
All told, Simpson filed for 111 PPP loan applications using false information. In those, Simpson created fake documents, including bogus tax returns.
The plea agreement states that Simpson’s fraud resulted in the loss of $2.3 million in government funds.
During the COVID-19 pandemic, the federal government's PPP assistance was to help small businesses keep workers employed and cover essential operating costs.
"Jawan Simpson abused the trust placed in him as a tax preparer to defraud the American people of more than $2 million," said U.S. Attorney Jerome F. Gorgon Jr. in a statement.
According to Jennifer Runyan of the FBI, the Amtrak Office of Inspector General's Central played an important role in the investigation.
"Exploiting a federal relief program during a national crisis for personal financial gain is a serious betrayal of the public trust. Today’s guilty plea represents an important step toward accountability," said Runyan, Special Agent in Charge of the FBI Detroit Field Office in a statement. "I am grateful for the outstanding work of our FBI Oakland County Resident Agency and the Amtrak Office of Inspector General’s Central and Western Field Offices.
"Their diligence and collaboration helped uncover this scheme and protect the integrity of programs funded by American taxpayers."
The Source: Information for this report is from the United States Attorney's Office, Eastern District of Michigan.
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