Jose “Joe” Biaou, a citizen of Benin and resident of Washington, D.C., was convicted on February 17 for defrauding federal Covid-19 relief programs out of millions of dollars. The verdict was announced by U.S. Attorney Jeanine Ferris Pirro.
A federal jury found Biaou guilty on six counts of wire fraud and one count of aggravated identity theft after less than a day of deliberation.
“Jose Biaou, a citizen of Benin, West Africa, was convicted of orchestrating massive fraud that siphoned millions of dollars from the American taxpayers at a time of national crisis when assistance was offered to those in need,” said U.S. Attorney Pirro. “The Trump Administration will not look the other way and will make thieves accountable. Mr. Biaou will suffer the consequence of his attempt to cheat the American taxpayers.”
According to evidence presented at trial, Biaou applied for more than $5 million in loans through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program on behalf of FRB Capital Group LLC—his commercial real estate brokerage—and Millennium Global Finance, which prosecutors described as a fictitious entity with no employees or operations.
In support of his applications, Biaou falsely claimed U.S. citizenship and submitted a forged birth certificate based on his minor daughter’s document. He also exaggerated FRB’s number of employees, payroll expenses, office rent, and other financial details on loan applications. Authorities stated he received over $3.5 million in proceeds from these programs.
For Millennium Global Finance, Biaou claimed it had 52 employees and an average monthly payroll exceeding $520,000 throughout 2019; investigators determined the company did not exist.
After obtaining funds, Biaou sought forgiveness for one PPP loan by submitting further false information about how the money was spent during the pandemic.
Biaou faces up to 30 years in prison when sentenced by Judge Christopher R. Cooper; sentencing has not yet been scheduled. The actual sentence will be determined by the court according to federal guidelines and statutory factors set by Congress.
The United States Postal Inspection Service - Washington Division led the investigation into this case. Prosecution is being handled by Assistant U.S. Attorneys Will Hart and Sungtae Kang along with Special Assistant U.S. Attorney Samanatha Miller.
