A man from Buford is one of six men indicted for fraudulently obtaining roughly $1.5 million in loans with the Paycheck Protection Program.
Tabronx W. Smith, 43, of Buford was charged in an indictment filed in the Northern District of Georgia with conspiracy to commit bank fraud, bank fraud, false statements to a financial institution, and money laundering. He is charged along with Rodericque Thompson, 43, of Atlanta; Micah K. Baisden of Doraville; Travis C. Crosby, 31, of Wellford, South Carolina; Keith A. Maloney, Jr., 33, of Port Wentworth, and Thomas D. Wilson, 30, of Atlanta.
Five others have already pleaded guilty to being involved in the scheme.
Acting U.S. Attorney Christine, Thompson recruited Baisden, Crosby, Maloney, Smith and Wilson to apply for PPP loans on behalf of their businesses.
Thompson helped them get a $300,000 PPP loan by filing false information or misleading statements on their loan applications. Thompson received a percentage of the loan proceeds. The loans were then allegedly used for "impermissible purposes," and fraudulent quarterly tax returns were submitted in connection with each application.
“The CARES Act, and the PPP, designated funds to aid struggling businesses during a pandemic,” said Acting U.S. Attorney Bobby L. Christine. “American businesses use these funds to help keep their companies and employees afloat during this unprecedented time. Scammers on the other hand seek an easy payday. We will continue investigating and prosecuting those who attempt to line their own pockets with these critical funds.”
Authorities have recovered $1,195,784.98 of the money.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.
The case is under investigation by the FBI, the Small Business Administration Office of the Inspector General, and the Treasury Inspector General for Tax Administration.
