Virginia Man Pleads Guilty To $2.5M PPP Swindle
A man from Leesburg, Virginia, pleaded guilty to a federal bank fraud charge that he stole $ 2.5 million by getting Paycheck Protection Program (PPP) loans by saying he needed the money for a fake one Payroll for fake employees in two real companies. The US Department of Justice announced this in a press release.
Didier K. Kindambu, 49, “ran the program in conjunction with two companies he owns by creating fraudulent payroll records for each company and then filing those records in support of PPP loan applications,” according to the US District Attorney for Eastern District of Virginia stated in the news release. “The fraudulent records showed that Kindambus companies had dozens of employees with wage costs running into the millions when they actually had few, if any, employees.”
The press release said Kindambu spent its illicit profits on a Lexus car, Cessna plane, tax obligations, down payment on a luxury home, cost of living, jewelry, clothing, accessories and shoes. Kindambu is due to be sentenced on August 4th.
According to the release, Kindambu could be sentenced to up to 30 years in prison in the worst case. However, the Associated Press quoted attorney Kevin Carroll as saying that Kindambu looks forward to providing the government and taxpayers with the necessary reimbursement.
“At a time when countless families and business owners across the country are struggling to make ends meet amid the ongoing pandemic, Didier Kindambu committed a multi-million dollar bank fraud by abusing COVID-19’s tax relief funds to fund his lavish lifestyle, “said Raj Parekh, acting US attorney for the Eastern District of Virginia, on the release. “Together with our law enforcement partners, this office will continue to prosecute and bring to justice those who seek to exploit essential pandemic recovery programs and gain personal benefit from the misfortunes of others.”
Even if the government continues with cases like Kindambu’s, the recently approved version of the PPP remains vulnerable to fraud. The authorities have charged dozens of people with fraud related to the PPP.
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