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IRS Bags Hundreds Of Tax Cheats, Money Launderers As COVID Relief Fraud Tops $3.2 Billion IRS Bags Hundreds Of Tax Cheats, Money Launderers As COVID Relief Fraud Tops $3.2 Billion
IRS Bags Hundreds Of Tax Cheats, Money Launderers As COVID Relief Fraud Tops $3.2 Billion It wasn't long after the government began offering COVID relief loans three years ago that IRS investigators were hot on the tails of scammers. Since then, agents with IRS Criminal Investigation have pursued 975 tax and money-laundering cases nationwide involving $3.2 billion worth of fraudulently obtained loans, credits and payments meant to help American workers, families, and small businesses who were rocked by the pandemic. Over that time, IRS-CI has kept its conviction rate at nearly 100%, federal authorities say. It has produced indictments against 458 defendants, …

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by Jerry DeMarco
Business
NJ COVID Scammer Who Pocketed $1.8M In Taxpayer-Funded Rescue Loans Gets Three Years In Fed Pen NJ COVID Scammer Who Pocketed $1.8M In Taxpayer-Funded Rescue Loans Gets Three Years In Fed Pen
NJ COVID Scammer Who Pocketed $1.8M In Taxpayer-Funded Rescue Loans Gets Three Years In Fed Pen UPDATE: A North Jersey businessman who collected $1.8 million in COVID-19 pandemic loans that he wasn't entitled to, then diverted the money into accounts held by family members -- including his young children -- was sentenced to three years in federal prison on Wednesday. Rocco A. Malanga, 39, formerly of Hackettstown, must serve out the entire plea-bargained sentence approved by a U.S. District Court judge in Newark on March 22 because there’s no parole in the federal prison system. Malanga lied on documents to three different lenders to secure federal Paycheck Protection Program (PPP) mo…

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by Jerry DeMarco
News
Sussex Man Who Spent $5.6M COVID Relief Money On Stock Market, Luxury Car, More Sentenced Sussex Man Who Spent $5.6M COVID Relief Money On Stock Market, Luxury Car, More Sentenced
Sussex Man Who Spent $5.6M COVID Relief Money On Stock Market, Luxury Car, More Sentenced A Sussex County man was sentenced Tuesday to more than five years in federal prison for spending $5.6 million in federal COVID-19 pandemic business loans for himself, authorities said. Azhar Sarwar Rana, 31, of Newton will have to serve out just about all of the 64-month sentence because there's no parole in the federal prison system. The federal Paycheck Protection Program was designed to keep struggling small businesses afloat during the pandemic. Rana used the money, instead, to invest millions in the stock market, make a payment to a luxury car dealership and send hundreds of thous…

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by Jerry DeMarco
News
Union County Woman Admits Destroying Evidence In $400,000 COVID Unemployment Scam Union County Woman Admits Destroying Evidence In $400,000 COVID Unemployment Scam
Union County Woman Admits Destroying Evidence In $400,000 COVID Unemployment Scam A Union County woman admitted in federal court that she was shredding bogus credit and debit cards -- obtained by a man who fraudulently collected $400,000 in pandemic unemployment benefits from the state of New York -- when investigators came busting in. Detectives armed with a search warrant found Latoyia McCollum, 46, of Hillside in the kitchen of an undisclosed location "placing what appeared to be a credit/debit card into the shredder" while face-timing on a cellphone in October 2020, Acting U.S. Attorney Rachael A. Honig said. McCollum told them she was on the phone with Maurice Mills…

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by Jerry DeMarco
News
Feds: NJ Scammer, Accomplice Submit $1.2M In Bogus COVID-19 Unemployment Claims Feds: NJ Scammer, Accomplice Submit $1.2M In Bogus COVID-19 Unemployment Claims
Feds: NJ Scammer, Accomplice Submit $1.2M In Bogus Covid-19 Unemployment Claims A Paterson man and an accomplice filed nearly $1.2 million in bogus COVID-related unemployment claims over the course of three months, federal authorities in Massachusetts charged. Omar Thompson, 39, and his unidentified female partner submitted more than 100 fraudulent Pandemic Unemployment Assistance claims, sometimes recruiting people from other states in the scheme and pocketing kickbacks, they said. Roughly half of the claims were submitted on behalf of people with out-of-state driver’s licenses and mailing addresses, according to the U.S. Attorney’s Office for Massachusetts. In anoth…

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by Jerry DeMarco
News
Feds: Sussex Scammer Used Dead People’s Names To Collect $1.9M In COVID Relief Feds: Sussex Scammer Used Dead People’s Names To Collect $1.9M In COVID Relief
Feds: Sussex Scammer Used Dead People’s Names To Collect $1.9M In COVID Relief A Sussex County scammer identified people who’d been dead for years as business partners to help collect $1.9 million from the federal fund established to help struggling companies during COVID-19, authorities charged. John Jhong, 51, of Sparta, also submitted phony IRS documents with bogus Paycheck Protection Program applications to the lenders on behalf of 10 purported businesses, Acting U.S. Attorney Rachael A. Honig said. Jhong converted a portion of the money intended for distressed businesses into a cashier’s check “that was used to fund a business account,” Honig said. Congress a ye…

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by Jerry DeMarco
Police & Fire
COVID-19: Feds Nab Fleeing Sussex Man Accused Of Pocketing $5.6M Small Biz Pandemic Loan COVID-19: Feds Nab Fleeing Sussex Man Accused Of Pocketing $5.6M Small Biz Pandemic Loan
Covid-19: Feds Nab Fleeing Sussex Man Accused Of Pocketing $5.6M Small Biz Pandemic Loan A Sussex County man who collected $5.6 million in federal COVID-19 pandemic loans that he wasn't entitled to was about to board a flight to Pakistan when federal agents arrested him, authorities said. Azhar Sarwar Rana, 30, of Newton, took the money -- designed to keep struggling small businesses afloat during the pandemic – and invested millions in the stock market, made a payment to a luxury car dealership and sent hundreds of thousands of dollars to accounts in Pakistan, U.S. Attorney Craig Carpenito said. Rana submitted an application for a stimulus loan under the federal Paycheck Prote…

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by Jerry DeMarco