Chilivis Grubman attorneys continue to highlight the government’s enforcement efforts regarding alleged COVID-19 fraud. The DOJ just announced that two New York brothers, Larry Jordan and Sutukh El, aka Curtis Jordan, aka Hugo Hurt, aka Hugo Hermes Hurtington, have pleaded guilty to conspiracy to commit bank fraud and wire fraud by scheming to file fraudulent Paycheck Protection Program (PPP) loans.
According to court documents, Jordan and El sought approximately $7.6 million by submitting eight PPP loan applications on behalf of companies controlled by the duo. During the COVID-19 pandemic, the Small Business Administration (SBA) guaranteed forgivable loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Jordan and El submitted applications containing false statements about their business 2019 payroll funds. The foregoing is important as the SBA used payroll expenses to calculate the amount of PPP funds allocated to companies. In furtherance of their scheme, Jordan and El submitted fraudulent IRS forms, fraudulent payroll registers, and fraudulent salaries for the employees identified on their applications. In turn, Jordan and El used PPP funds for their personal benefit.
The brothers now face up to 30 years in prison and a fine of $1 million for conspiracy to commit bank and wire fraud. Jordan pleaded guilty to bank fraud and engaging in monetary transactions in criminally derived property, which carries up to 30 and 10 years, respectively. Jordan and El are scheduled to be sentenced on January 17, 2024.
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with white-collar criminal investigations and healthcare fraud investigations. If you need assistance with such a matter, please contact us today.