(From the U. S. Attorney for the Western District of Missouri)A Joplin, Mo., man was sentenced in federal court today for two fraud schemes, totaling nearly $300,000, including fraudulent loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and a so-called “transaction reversal” bank scheme.
Deaviyon Rockett, 22, was sentenced by U.S. District Judge Roseann A. Ketchmark to five years and three months in federal prison without parole. The court also ordered Rockett to pay $260,000 in restitution.
On April 5, 2023, Rockett pleaded guilty to two counts of wire fraud. Rockett admitted that he submitted at least $119,262 in fraudulent Paycheck Protection Program loan applications. Rockett also admitted that he engaged in a $176,007 “transaction reversal” fraud scheme.
PPP Fraud Scheme
The purpose of the CARES Act was to provide emergency financial assistance due to the economic impact caused by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration to provide Paycheck Protection Program (PPP) loans to small businesses to retain workers and maintain payroll, and make mortgage interest payments, lease payments, and utility payments. Under the PPP, both the principal and interest on those loans were eligible for forgiveness.
Rockett admitted that, from March 26 to May 17, 2021, he submitted six PPP loan applications using the names of other individuals that falsely claimed a business, its employees, and/or the amount of the salaries to be covered through these loans existed. In reality, those representations were entirely false. Rockett then accessed the bank accounts of these individuals, withdrawing much of the money that had been fraudulently received, and used those funds for expenses that were unrelated to and prohibited to be used under the PPP loan program.
“Transaction Reversal” Fraud Scheme
Law enforcement in Neosho and Jasper Counties was contacted in August 2022 by numerous individuals who reported that Rockett had contacted them through various media platforms. Rockett told these individuals that he was part of a business that involved “transaction reversal,” and that if they would give him their bank account information, he would make himself and the victim money by conducting these transactions on their bank account.
Rockett accessed the victims’ bank accounts in order to deposit fraudulent checks written on the bank accounts of Coffeyville Community College and/or Santander Consumer USA. Once the checks were deposited, the bank would credit the account on a preliminary basis. However, those checks were not authorized by either entity and were not honored by either entity.
Rockett immediately withdrew either the amount of the checks or, in some cases, completely emptied the bank account of all funds before the bank reversed the deposits. At least $176,007 in total was fraudulently withdrawn from the bank accounts of fraud victims.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Joplin, Mo., Police Department.
3 comments:
'Biggest fraud in a generation': The looting of the Covid relief plan known as PPP.
The PPP was just another Stupid Program, where you could easily fill out a Few Forms, Lie on them and receive large payouts from the Government. There was little oversight or fact checking involved, they are now realizing the true amount of fraud that occurred.
The U.S. Government authorized approximately $5 trillion in relief programs. These programs included the Paycheck Protection Program (PPP), which allowed businesses to apply for forgivable loans to pay for payroll and other expenses; the Economic Injury Disaster Loan Program (EIDL), which permitted businesses to apply for low interest loans to be used for working capital and other normal expenses; and Federal Pandemic Unemployment Compensation (FPUC), which was intended for employees who lost their jobs due to the pandemic.
The theft was massive in scale. The U.S. Small Business Administration inspector general estimates $136 billion in fraud from the EIDL and $64 billion in fraud from the PPP. For FPUC, the U.S. Government Accountability Office estimates more than $100 billion in fraud. Combined, these losses make the fraud the largest in history.
Whenever the U.S. Government is involved in any Assistance or Loan Programs there is going to be Fraud and Complete Failure to Fact Check and Audit.
Take UI Unemployment Insurance, Disability Insurance, and Social Security Fraud - the U.S. Government is trying to stop the mountain of Fraudulent Claims, by having the Public turn in Fraudsters.
Covid Vaccine biggest fraud, the people that made it stated it will not stop the spread and has side effects, well who would have thought with an experimental drug.
Me and my backbone sure am glad I didn’t drink that kool aid.
Stop pretending that you're not fully vaccinated and boosted.
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