A project manager employed by a major retailer has pleaded guilty to bank fraud charges for filing fraudulent bank loan applications seeking more than $8 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Trent Shores for the Northern District of Oklahoma, Acting Deputy Inspector General Richard Parker of the Federal Housing Finance Agency Office of Inspector General (FHFA OIG), Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) OIG and Inspector General Hannibal “Mike” Ware of the SBA OIG made the announcement. 

Benjamin Hayford, 32, of Centerton, Arkansas, pleaded guilty to one count of bank fraud and four counts of false statements to a financial institution before U.S. District Judge Claire V. Eagan of the Northern District of Oklahoma.  Sentencing has been scheduled for Nov. 4 before Judge Eagan. 

“Stopping COVID-related fraud is a priority for the Department of Justice. Fraudsters like Benjamin Hayford greedily steal money that should be going to America’s small business owners who are struggling during this public health crisis,” said U.S. Attorney Trent Shores. “From coast to coast, U.S. Attorneys and our federal investigative partners will continue to pursue those who would defraud the government by engaging in schemes to steal millions of dollars in forgivable PPP loans by claiming fictitious payroll expenses.”

As part of his guilty plea, Hayford admitted that he sought millions of dollars in forgivable PPP loans from multiple banks by claiming fictitious payroll expenses.  To support his applications, Hayford provided lenders with fraudulent payroll documentation purporting to establish payroll expenses that were, in fact, non-existent.  In addition, Hayford admitted to making false representations to a financial institution concerning the date that a Limited Liability Partnership for which he applied for relief was established. 

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent.  PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use a certain percentage of the loan towards payroll expenses. 

This case was investigated by the FHFA OIG, FDIC OIG, and SBA OIG.  Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Victor A.S. Régal for the Northern District of Oklahoma are prosecuting the case.  The U.S. Attorney’s Office for the Western District of Arkansas provided valuable assistance in this matter.    

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

TULSA, Okla. – United States Attorney Trent Shores announced today the results of the July 2020 Federal Grand Jury B.

The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

Ryan Andy Cuevas. Financial Institution Fraud; Aggravated Identity Theft; Fraudulent Use of a Social Security Number; Possession of a Stolen Motor Vehicle. Cuevas, 32, of Moreno Valley, California, is charged with financial institution fraud, aggravated identity theft, fraudulent use of a social security number, and possession of a stolen motor vehicle. According to court documents, Cuevas fraudulently using other people’s identities when he purchased two vehicles and attempted to purchase a third vehicle. See the criminal complaint press release here to learn more about the crimes. The Social Security Administration Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bartlesville Police Department are the investigative agencies.

Carlos Alberto Jimenez Dorantes (aka “David Isiordia Pena”); Kevin Antonio Cardona Virgen (aka “Saul Davila Cobos” and “Miguel”); and Jose de Jesus Ramirez Reyes. Drug Conspiracy; Distribution of Heroin; Possession of Heroin With Intent to Distribute. (superseding)  Carlos Alberto Jimenez Dorantes, age unknown, of Tulsa; Kevin Antonio Cardona Virgen, 24; and Jose de Jesus Ramirez Reyes, 50, are charged with conspiring to possess with intent to distribute and with distributing heroin. Jimenez and Cardona are also charged with knowingly distributing heroin. Finally, Jimenez intentionally possessed with intent to distribute 1 kilogram or more of heroin. The Drug Enforcement Administration, Tulsa Police Department and Yavapai County Sheriff’s Office in Arizona are the investigative agencies.

Ramiro Gonzalez-Sanchez. Unlawful Reentry of a Removed Alien. Gonzalez-Sanchez, 32, of Tulsa, is charged with reentry of a removed alien, having returned to the United States unlawfully after being deported Sept. 15, 2011, at Brownsville, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and the Tulsa Police Department are the investigative agencies.

Benjamin Hayford. Financial Institution Fraud; False Statements to a Financial Institution. Hayford, 32, of Centerton, Arkansas, allegedly filed fraudulent bank loan applications seeking more than $8 million in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Hayford allegedly sought millions of dollars in forgivable loans guaranteed by the SBA from multiple banks by claiming fictitious payroll expenses. To support his applications, Hayford allegedly provided lenders with fraudulent payroll documentation purporting to establish payroll expenses that were, in fact, non-existent. In addition, Hayford represented to a financial institution that the Limited Liability Partnership for which he applied for relief was established in January 2020 and was operating as of Feb. 15, 2020.  In fact, a search of the contents of Hayford’s email account revealed that Hayford did not create the partnership until April 2020, several days before he began applying for Paycheck Protection Program (PPP) loans. The Federal Housing Finance Agency Office of Inspector General, Small Business Administration Office of Inspector General, and the Federal Deposit Insurance Corporation Office of Inspector General are the investigative agencies.

Donald Eugene Knight, Jr. Felon in Possession of a Firearm; Felon in Possession of Ammunition. Knight Jr., 46, of Tulsa, is charged with being a felon in possession of a Jimenez Arms Inc., .22 caliber semi-automatic pistol and ammunition. Knight is a 12-time convicted felon. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

Victor Alfonso Martinez-Lopez. Possession of Firearm and Ammunition by Alien Illegally and Unlawfully in the United States. Martinez-Lopez, 31, of Tulsa, is charged with being an alien illegally and unlawfully in the United States in possession of a Beretta USA Corp., 9 mm Luger caliber semi-automatic pistol and ammunition. The Tulsa Police Department, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

Christopher Jeremy McConnell. Wire Fraud; Engaging in Unlawful Monetary Transaction (superseding). McConnell, 34, of Tulsa, is charged with five counts of wire fraud and one count of making an unlawful monetary transaction as a part of a scheme to defraud a coworker. McConnell is alleged to have become friends with the victim after the loss of her spouse. According to the indictment, McConnell devised a scheme to defraud the coworker of funds from an IRA, worth $90,000. He convinced the victim to transfer the IRA funds into her personal Chase bank account then $80,200 into his personal Bank of America account. He told the victim he would act as her broker and invest the funds in “Euro-Dollars” and possibly gold and silver for her financial benefit and security. The indictment states that in May and June 2017, McConnell only invested approximately $12,500 of the victim’s funds. Unbeknownst to the victim, McConnell allegedly spent the rest of her funds on his own personal expenses, including dining, travel, retail items, gaming, and cash withdrawals. The FBI is the investigative agency.

Kory Dwayne McCormick. Felon in Possession of Firearms and Ammunition; Possession of Firearms and Ammunition After Conviction for Misdemeanor Crime of Domestic Violence.  McCormick, 39, of Drumright, is charged with being a felon in possession of a Taurus .40 S&W caliber pistol, a Sturm, Ruger & Co., Inc. .22 caliber long rifle, and 104 rounds of associated ammunition. McCormick was previously convicted of eight felonies. McCormick is also charged with possessing firearms and ammunition after a 2016 conviction for misdemeanor crime of domestic violence. The Drumright Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

Ronald Alexander Paz-Rodriguez (aka “Ronald Rodriguez-Paz”) and Eva Estrada Juarez. Obtaining Forced Labor; Benefiting From Forced Labor; Involuntary Servitude; Trafficking With Respect to Peonage, Slavery, Involuntary Servitude, and Forced Labor. Paz-Rodriguez, 36, and Juarez, 29, of Tulsa, aided and abetted each other in obtaining the labor and services of a minor child through 1. force, threats of force, physical restraint and threats of physical restraint; 2. serious harm and threats to seriously harm; 3. the abuse and threatened abuse of the law and legal process; and 4. multiple schemes to cause the victim to believe she would suffer serious harm if she did not perform the labor and services. The two are also charged with benefiting financially as a result of the forced labor; holding the minor to a condition of involuntary servitude; and recruiting, harboring, transporting, providing and obtaining the minor child for labor and services. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are conducting are the investigative agencies.

Trentin Anton Richardson. Obstructing, Delaying and Affecting Commerce by Robbery; Carrying, Brandishing, Using, and Discharging a Firearm During and in Relation to a Crime of Violence. Richardson, 20, of Beggs, is charged with robbing a Dollar General Store in Sapulpa on June 4, 2020. He is also charged with carrying, brandishing, using and discharging a Ruger 9 mm semi-automatic pistol during and in relation to the crime. The Sapulpa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.

Brian Michael Rogers. Possession of an Unregistered Destructive Device. Rogers, 37, of Tulsa, is charged with knowingly possessing a pipe bomb which had not been registered to him in the National Firearms Registration and Transfer Record. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agencies.

Anthony Morgan Stephens, Leslie Lynn Wilson, Louis Fuque Kent, and Joe Allan Bounds. Conspiracy (Count 1); Aggravated Identity Theft (Counts 2-29); Obtaining Information From Protected Computer (Count 30). (superseding)  Stephens, 37, of Wichita Falls, Texas; Wilson, 41, of Wichita Falls, Texas; Kent, 77, of Wichita Falls, Texas; and Bounds, 68, of Electra, Texas, are charged with conspiracy to steal in excess of $1,000 from Indian gaming establishments operated by the Muscogee (Creek) Nation and Quapaw Nation of Oklahoma. Stephens, Wilson and Bounds are also charged with aggravated identity theft. Stephens is also charged with obtaining information from a protected computer.

On July 24, 2019, Stephens accessed the mobile application for the Downstream Casino player’s club and created false accounts seeking to obtain reward points that were applied to actual customers’ accounts from the Downstream Casino’s “refer a friend” promotion. From July 28 to July 31, 2019, Stephens, Wilson, Kent and another individual, Vickie Smith, used counterfeit casino player’s cards utilizing the reward points previously placed on the card by fraudulent means. In August 2019, Stephens accessed the River Spirit’s player’s card database and obtained casino customers’ names, player’s card numbers, and points. He then created counterfeit player’s cards that contained the customers’ player’s club information. On August 2, 2019, Stephens and Smith used the counterfeit cards and actual customers’ personal identification numbers (PINs) to access points from the accounts of those customers at River Spirit Casino in Tulsa. From Aug. 7 to Aug. 8, 2019, Stephens and Wilson stayed at the River Spirit Casino hotel and used counterfeit casino player’s cards and actual customers’ PINs to access point from the accounts of actual customers at the casino. On Sept. 6, 2019, Stephens, Kent, and Bounds used the counterfeit cards and actual customer PINs to access customers’ accounts at the Creek Nation Casino in Bristow. Muscogee (Creek) Nation Lighthorse Tribal Police and the FBI conducted the investigation.

TULSA, Okla. – A project manager employed by a major retailer was charged in a complaint unsealed today for allegedly filing fraudulent bank loan applications seeking more than $8 million in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Trent Shores for the Northern District of Oklahoma, Acting Deputy Inspector General Richard Parker of the Federal Housing Finance Agency Office of Inspector General (FHFA OIG) and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) and Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA OIG) made the announcement.    

Benjamin Hayford, 32, of Centerton, Arkansas, was charged in a federal criminal complaint filed in the Northern District of Oklahoma with wire fraud, bank fraud, making false statements to a financial institution, and making false statements to the SBA.   

Hayford allegedly sought millions of dollars in forgivable loans guaranteed by the SBA from multiple banks by claiming fictitious payroll expenses.  To support his applications, Hayford allegedly provided lenders with fraudulent payroll documentation purporting to establish payroll expenses that were, in fact, non-existent.  In addition, Hayford represented to a financial institution that the Limited Liability Partnership for which he applied for relief was established in January 2020 and was operating as of Feb. 15, 2020.  In fact, a search of the contents of Hayford’s email account revealed that Hayford did not create the partnership until April 2020, several days before he began applying for Paycheck Protection Program (PPP) loans.     

“It is disgraceful that anyone would exploit loans meant to protect America’s small business owners during this public health crisis,” said U.S. Attorney Trent Shores. “Unfortunately, COVID-fraudsters are out there and active. Their victims are people who perform the back-breaking and emotionally challenging work to live their dream as a business owner and give back to their communities. My Coronavirus Anti-Fraud Team is more than capable to hold individuals accountable for illegally taking money from our financial institutions and from hard working Americans.”

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent.  PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.  

A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.  

Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Victor A.S. Régal for the Northern District of Oklahoma are prosecuting the case.  The U.S. Attorney’s Office for the Western District of Arkansas provided valuable assistance in this matter.  

The Justice Department acknowledges and thanks the FHFA OIG, the SBA OIG, and the FDIC OIG for their efforts investigating this mater.  

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.