Criminal Investigative Updates

Dent Hunter, of New Orleans, Louisiana, pleaded guilty to making false statements and money laundering, related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). According to the charging documents, in April 2020, Hunter, on behalf of a business, made false statements to an approved lender to obtain a $122,100 Paycheck Protection Program (PPP) loan. In July 2020, Hunter stole $149,900 from the US Small Business Administration (SBA) by using an application in the name of NexLevel ONE Realty. Finally, Hunter committed two counts of money laundering by using these ill-gotten funds to purchase two motor vehicles for family members. He faces up to five years in prison for the false statement counts. Hunter also faces up to ten years in prison for the money laundering count. All counts include up to $250,000 in fines and up to three years of supervised release. The VA OIG and the Internal Revenue Service Criminal Investigation investigated this matter.  

Tamika Chappell of New Orleans pleaded guilty to making false statements related to the Coronavirus Aid, Relief, and Economic Security Act; making false statements to the Internal Revenue Service; and theft of government funds. Chappell fraudulently obtained approximately $105,000 in pandemic-related relief loans and received at least $1,000 in disability payments from the Social Security Administration for which she was not eligible. She also failed to report the correct amount of taxable income to the IRS for 2020. This case was investigated by VA OIG, the SSA, and the IRS. 

Clifton James, of New Orleans, Louisiana, was sentenced to five years of probation for making false statements, theft of government funds, and money laundering related to the Coronavirus Aid, Relief, and Economic Security Act, as well as filing a false tax return with the Internal Revenue Service (IRS). In 2020, James made false statements on behalf of a business he owned to an approved lender to obtain $86,800 from the Small Business Administration’s Paycheck Protection Program. He also stole $149,900 from the agency by using a false application. He committed money laundering by using the funds received to buy an automobile and filed a false document with the IRS, claiming to have earned one dollar in 2019. James was ordered to perform 50 hours of community service and pay restitution of $551,973 to the Small Business Administration, as well as $233,645.65 in restitution to the IRS. The VA OIG, as part of the Pandemic Response Accountability Committee Fraud Task Force, and the IRS Criminal Investigation agency investigated this case.

Irvin C. Francois III, of New Orleans, Louisiana, was indicted for making false statements and money laundering related to the Coronavirus Aid, Relief, and Economic Security Act, which provided emergency assistance to small business owners. According to the charging documents, Francois, on behalf of a company that he owned, made false statements to an approved lender to obtain approximately $144,790 for a Paycheck Protection Program loan. He then committed money laundering by using these funds to buy an automobile from a dealership in Kenner, Louisiana. The VA OIG investigated the case as part of the Pandemic Response Accountability Committee Fraud Task Force.