In total, 90 fraudulent PPP applications were filed in the conspiracy, totaling at $24 million in funds. Out of the $24 million, approximately $17.4 million was obtained in PPP loans by all of the defendants in the case.
Johnson was arrested by authorities on Oct. 1 and appeared before Magistrate Judge Henry S. Perkin of the Eastern District of Pennsylvania on Oct. 2. A few days later Smith was arrested, appearing before U.S. Magistrate Judge Regina D. Cannon of the Northern District of Georgia on Oct. 6.
The CARES Act was passed unanimously by Congress on March 29, 2020. Around $649 billion in forgivable PPP loans were issued to small businesses across the U.S. as of April 20, 2020.
All defendants have yet to be convicted of the aforementioned crimes and are innocent until proven guilty under the auspices of the U.S. legal code.
The Justice Department is aggressive in prosecuting entities and individuals who are taking advantage of the COVID-19 pandemic to commit fraud and other illegal activities.
