According to the U.S. Attorney's Office, a man from Santa Clarita Valley pleaded guilty to fraudulently obtaining over $1 million in Paycheck Protection Program (“PPP”) loans for his bogus companies by submitting false financial and employee information.
Raymond Magana pleaded guilty to one federal count of fraud in connection with major disaster or emergency benefits in downtown Los Angeles federal court. U.S. District Judge Stanley Blumenfeld Jr. scheduled Magana's sentencing hearing for May 11, 2021. He faces a statutory maximum of thirty years in federal prison.
In his plea agreement, Magana admitted that he falsified financials and submitted them to Customer's Bank in an effort to obtain PPP loan relief. Moreover, Magana admitted he lied about the number of employees and the number of payroll expenses. Based on Magana's falsified claims, he was funded more than $1 million.
This case represents the government's ongoing efforts to combat widespread financial fraud. Earlier this year, Congress passed the CARES Act which provided fast and direct economic assistance for American workers, families, and small businesses nationwide to help preserve the American job industry. The FBI is currently inundated with PPP Loan fraud investigations. Consequently, more indictments should be handed down by the grand jury this year.
For more information, or if you have been indicted or are under investigation for PPP loan fraud, then contact our office to schedule a consultation with an experienced federal criminal defense attorney.