The United States has secured judgments in five civil fraud lawsuits involving fraudulent Paycheck Protection Program (PPP) loans. Acting U.S. Attorney Alexander C. Van Hook announced that the individuals involved obtained loans for fictitious companies or self-employment, violating the False Claims Act. The defendants named are Antoinette Kennedy, Andre Lane, Dieudonne Nlend, Tracey Thompson, and Rashinda Harris. The total amount recovered by the United States is $138,413.72.
The PPP was part of the Coronavirus Aid, Relief and Economic Security (CARES) Act established in March 2020 to help small businesses during the COVID-19 pandemic with forgivable loans. Applicants were required to certify their eligibility and submit accurate information for loan forgiveness.
Kennedy's case began in May 2024 when an investigation revealed she had no business as claimed on her application. She learned about a scheme on Instagram and prepared false paperwork to obtain loans. A default judgment against Kennedy was issued for $48,813.72.
Thompson and Harris exaggerated their business income in false applications prepared with outside assistance, resulting in settlements of $23,516 and $23,415 respectively. Lane submitted a false self-employment income claim leading to a settlement of $23,435.
Nlend admitted to falsifying his self-employment income amounts during an interview with investigators. He used the loan proceeds for a family member's medical issue abroad. A consent judgment against Nlend amounted to $19,234.
“The United States Attorney’s Office will use every tool at our disposal - to include civil litigation - to root out fraud, waste, and abuse of taxpayer money,” said Acting U.S. Attorney Alexander C. Van Hook.
These resolutions resulted from collaboration between the Civil Division of the U.S. Attorney’s Office, Small Business Administration’s Office of Inspector General, and Department of Army Criminal Investigation Division for certain cases. Assistant U.S. Attorney Melissa L. Theriot handled these cases.
