Caleb Walsh, a 36-year-old businessman from Apollo Beach, has been charged by federal indictment with bank fraud, wire fraud, and illegal monetary transactions, according to a March 17 announcement by U.S. Attorney Gregory W. Kehoe. If convicted on all counts, Walsh could face up to 30 years in federal prison.
The charges stem from allegations that between March 2020 and March 2021, Walsh submitted false Paycheck Protection Program (PPP) loan applications for companies he controlled. The indictment states that he misrepresented employee numbers and payroll costs and falsely certified the use of PPP funds for legitimate expenses. Prosecutors allege that Walsh also submitted fraudulent IRS tax forms and altered bank statements as part of his scheme.
Authorities say the illegally obtained PPP funds were used to purchase a Mercedes Benz G-Wagon, invest in a hotel in Nebraska, buy cryptocurrency, and pay for private jet flights to Mexico for himself and his family. The United States intends to seize these assets as proceeds traceable to the alleged offenses.
U.S. Attorney Kehoe emphasized that an indictment is only a formal charge: "An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty."
The case was investigated by several agencies including the Federal Deposit Insurance Corporation – Office of Inspector General, IRS Criminal Investigation, the Federal Bureau of Investigation, and the U.S. Small Business Administration – Office of Inspector General. Special Assistant United States Attorney Chris Poor will prosecute the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to coordinate efforts across government agencies in combating pandemic-related fraud. Anyone with information about attempted COVID-19 fraud can report it through the Justice Department’s National Center for Disaster Fraud Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
