The United States Attorney’s Office for the Middle District of Pennsylvania has announced the indictment of Dommonick T. Chatman, a 49-year-old resident of York, Pennsylvania. Chatman faces twenty counts of bank fraud and one count related to the destruction of records in a federal investigation.
Acting United States Attorney John C. Gurganus stated that the indictment accuses Chatman of submitting or facilitating the submission of fraudulent Paycheck Protection Program (PPP) loan applications. These applications were allegedly designed to secure funds for his clients, along with kickback payments for himself.
The PPP was established under the CARES Act in March 2020 to support small businesses during the COVID-19 pandemic. It offered forgivable loans if used according to specific criteria, such as covering employee payroll and other essential expenses.
Chatman operated The Chatman Group, LLC, a tax-preparation business in York, PA. The indictment claims he provided false information on PPP loan applications for his clients. An example given is the submission of IRS Schedule C forms claiming over $100,000 in gross receipts when actual figures were significantly lower or not filed at all.
Financial institutions reportedly approved these loans based on fraudulent documentation submitted by Chatman or his associates. The charges focus on twenty separate instances of alleged bank fraud occurring in March and April 2021, each involving loan requests around $20,833—the maximum amount for sole proprietors without employees.
Furthermore, it is alleged that after being contacted by federal law enforcement in late 2022, Chatman destroyed both electronic and physical records related to PPP loan applications to obstruct a grand jury investigation.
The Federal Bureau of Investigation and the U.S. Department of the Treasury's Office of Inspector General conducted investigations into this case, with Assistant U.S. Attorney Ravi Romel Sharma leading prosecution efforts.
Federal penalties for bank fraud can include up to 30 years imprisonment and fines; destruction of records can result in up to 20 years imprisonment and fines. Sentences are determined by judges following applicable laws and guidelines.
Indictments serve as allegations only; those charged are presumed innocent until proven guilty in court.
In response to pandemic-related frauds like this one, the Attorney General established the COVID-19 Fraud Enforcement Task Force on May 17, 2021. This task force aims to combat fraud through coordination among various agencies and sharing information from past enforcement actions.
To report potential COVID-19-related fraud attempts, individuals can contact the National Center for Disaster Fraud via their hotline or web complaint form.
