U.S. Attorney Darcie N. McElwee has announced the filing of lawsuits against three individuals accused of fraudulently obtaining pandemic relief funds through the CARES Act. The individuals, Jazmyn Paduani from Manchester, New Hampshire, Devin Vangel from Colorado Springs, Colorado, and Antoinette Avery from Holden, Maine, are alleged to have misrepresented financial information to receive loans under programs such as the Paycheck Protection Program (PPP) and the COVID-19 Economic Injury and Disaster Loan Emergency Advance.

According to the complaints, these individuals allegedly provided false information regarding their businesses' income and payroll costs or falsely claimed to operate a business. Additionally, two defendants who received PPP loans reportedly obtained forgiveness for these loans by misrepresenting their use of the funds.

The lawsuits were filed under the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). The FCA holds that any person who “knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval” is liable for damages plus a civil penalty. For violations assessed after February 12, 2024, the minimum penalty per violation is $13,946.

Section 951 of FIRREA allows for civil penalties against those who knowingly make false statements to influence decisions by the Small Business Administration's Administrator. The maximum penalty per violation under FIRREA after February 12, 2024 is $2,449,575.

These legal actions are part of ongoing efforts by the U.S. Attorney’s Office to identify and investigate fraudulent acquisition of pandemic relief funds. Recent changes in federal law have extended the statute of limitations for related civil and criminal fraud enforcement actions from six years to ten years.

The cases are filed as United States v. Paduani (24-cv-00439-JCN), United States v. Vangel (24-cv-00440-JCN), and United States v. Avery (24-cv-00441-KFW), all docketed in Maine District Court.

The allegations remain claims at this stage with no determination of liability made against any defendant.