Repeat fraudster convicted at trial of over $10 million COVID-19 loan fraud scheme | USAO-SDNY

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Damian Williams, the United States Attorney for the Southern District of New York, announced earlier today that a federal jury had found ADEDAYO ILORI guilty of six counts for his part in a fraudulent scheme to obtain over $10 million in government guarantees. loans intended to provide relief to small businesses during the COVID-19 pandemic. The accused was found guilty following a week-long trial before US District Judge Mary Kay Vyskocil. The jury further found that ILORI committed these crimes while on bail. Sentencing is currently scheduled for January 31, 2023, before Judge Vyskocil.

US Attorney Damian Williams said: “Adedayo Ilori used the stolen identities of innocent victims to steal government money that was set aside to help small businesses stay afloat during the COVID-19 pandemic. Ilori illegally took advantage of a national emergency. Worse still, he did so while on bail in another serious criminal case brought by this Office. Thanks to the hard work of the Department of Justice-Office of the Inspector General and career prosecutors in that office, a unanimous jury convicted Ilori of committing another fraudulent scheme.

According to the Substitute Indictment and the evidence presented at trial:

From at least August 2020 or thereabouts until October 2021 or thereabouts, ILORI and his co-defendant, Chris Recamier, engaged in a rampant COVID-19 loan fraud scheme. Using false identities, false tax records and corporate documents, ILORI and Récamier managed to obtain over $1 million and attempted to obtain over $10 million through two loan programs from the United States Small Business Administration (“SBA”) designed to relieve small businesses. companies during the COVID-19 pandemic, namely the Paycheck Protection Program (“PPP”) and the Economic Disaster Loan Program (“EIDL”). In particular, ILORI and Récamier requested 14 PPP and EIDL loans. By soliciting these loans, ILORI and Récamier claimed third-party impersonation and claimed full control of a number of businesses which they claim employed more than 200 people and paid monthly salaries of more than $3. .2 million. In reality, they were not exploiting these companies. In submitting these requests, ILORI and Récamier, among others, submitted falsified tax documents that were never actually filed with the Internal Revenue Service.

ILORI and Récamier transferred the majority of these stolen government funds to cryptocurrency investments, stock purchases, cash withdrawals and personal expenses, including the rental of luxury apartments and a mercedes. Investment accounts have also been opened by ILORI and Récamier with identities usurped from third parties.

The Coronavirus Aid, Relief, and Economic Security Act (“CARES”) is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to millions of Americans who are suffering from the economic effects caused by the COVID pandemic. -19. . One of the sources of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in small business forgivable loans to maintain jobs and certain other expenses through the SBA’s PPP. Under the CARES Act, the amount of PPP funds a company can receive is determined by the number of employees employed by the company and their average payroll costs. Businesses applying for a PPP loan must provide documentation confirming that they have already paid their employees the compensation represented in the loan application. The CARES Act also expanded the separate EIDL program, which offers small businesses low-interest loans of up to $2 million that can provide vital economic support to help overcome the temporary loss of income they are experiencing. due to COVID-19. To qualify for an EIDL loan under the CARES Act, the applicant must have suffered “substantial economic harm” from COVID-19.

ILORI committed the offenses while facing charges in a separate case filed in the Southern District of New York for fraud, identity theft and money laundering in United States vs. Ilori, 20 Cr 378 (LJL). In connection with this case, ILORI was sentenced on March 3, 2022 to 63 months in prison by U.S. District Judge Lewis J. Liman in connection with a commercial loan fraud and bank corruption scheme.

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ILORI, 43, of Queens, New York, was convicted of: (1) major fraud against the United States, which carries a maximum sentence of 20 years in prison; (2) conspiracy to commit wire and bank fraud, punishable by up to 40 years in prison; (3) wire fraud, punishable by up to 40 years in prison; (4) bank fraud, punishable by up to 40 years in prison; (5) aggravated impersonation, punishable by a mandatory consecutive sentence of two years in prison; and (6) conspiracy to commit money laundering, punishable by up to 30 years in prison.

The maximum potential sentences in this case, which are increased by the jury’s finding that these crimes were committed while ILORI was on bail, are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the accused will be determined by the judge.

ILORI co-defendant Chris Recamier, 59, of New York, New York, previously pleaded guilty to major fraud against the United States and was sentenced on October 17, 2022 by Judge Vyskocil to nine years in prison .

Mr. Williams commended the investigative work of the DOJ-OIG. Mr. Williams also thanked the US Secret Service, the Drug Enforcement Administration, the New York City Police Department, the Federal Bureau of Investigation and the Federal Aviation Administration for their assistance in this investigation.

This case is being handled by the Bureau’s Complex Fraud and Cybercrime Unit. Assistant United States Attorneys Juliana Murray, David R. Felton and Daniel G. Nessim are charged with the prosecution.

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