Naples Felon charged with COVID relief fraud | USAO-MDFL

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Fort Myers, Fla. – U.S. Attorney Roger B. Handberg announces the return of an indictment charging Daniel Joseph Tisone (34, Naples) with wire fraud, bank fraud, aggravated identity theft, illegal money transactions and possession of ammunition by a convicted felon. If convicted, Tisone faces a maximum sentence of 30 years in federal prison for each count of wire fraud (4 counts) and bank fraud (6 counts), a mandatory minimum imprisonment of 2 years for the counts of aggravated impersonation (2 counts), up to 10 years in federal prison for each account of illegal monetary transaction (5 counts), and for possession of ammunition. The indictment also notifies Tisone that the United States intends to disclaim its interest in a 2019 Tiara 34LS boat, two properties located in Naples, a 4.02-carat solitaire engagement ring, approximately $65,645.69 seized from two bank accounts and approximately $2,617,447.17, which is alleged to be traceable to the proceeds of the breach.

According to court documents, between March 2020 and April 2021, Tisone, a convicted felon, submitted false and fraudulent loan applications for Economic Disaster Loans (EIDL), Main Street Lending Program (MSLP) and the Paycheck Protection Program (PPP) at the Small Business Administration, as well as PPP and MSLP Approved Lenders. The loan applications contained numerous false statements, including the criminal history, average monthly payroll, number of employees and gross income of the applicant, Tisone.

In support of the fraudulent EIDL, PPP and MSLP claims, Tisone submitted false and fictitious payroll and tax documents, as well as a false commercial lease. In addition, Tisone fraudulently used the identifications of individuals claiming to work for Tisone companies, including their names, dates of birth, and social security numbers, to submit false payroll and payroll tax documents. and fraudulent. Tisone also fraudulently used an individual’s means of identification, including name, date of birth, driver’s license and social security number, to submit a false and fraudulent EIDL application.

Tisone’s false and fraudulent misrepresentations caused SBA, PPP, and MSLP lenders to approve and fund one MSLP loan, four EIDLs, and five PPP loans, resulting in more than $2.6 million being deposited in accounts. banks controlled by Tisone. Tisone then illegally used the funds for unauthorized purposes and for his own personal enrichment, including the purchase of residences in Naples, stocks and securities, and ammunition.

The CARES Act (Coronavirus Aid, Relief, and Economic Security) is a federal law enacted in March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering from the economic effects resulting from the COVID pandemic. -19. One of the sources of relief provided by the CARES Act is the authorization of up to $349 billion in small business forgivable loans 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 small businesses and other eligible organizations to receive loans with a term of two years and an interest rate of 1%. Businesses must use PPP loan proceeds for payroll costs, mortgage interest, rent and utilities. The PPP allows interest and principal to be waived if the company spends the proceeds of these expenses within a specified time and uses at least a certain percentage of the loan for payroll expenses.

The EIDL program is designed to provide economic relief to small businesses currently experiencing a temporary loss of revenue. Proceeds from EIDL can be used to cover a wide range of working capital and normal operating expenses, such as continued health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, EIDL funds cannot be used for the same purposes as PPP funds.

The MSLP was designed to provide support to small and medium businesses and their employees across the United States during the COVID-19 pandemic. The program aimed to help companies, which were in good financial health before the start of the pandemic, to maintain their operations and payroll until conditions normalize.

An indictment is simply a formal accusation that an accused has committed one or more violations of federal criminal law, and each accused is presumed innocent unless and until proven guilty.

This matter was investigated by the FBI, the Special Inspector General for Pandemic Recovery (SIGPR), the Internal Revenue Service – Criminal Investigation, and the Office of Inspector General of the Federal Reserve Board. He is being prosecuted by Assistant United States Attorneys Trent Reichling and Suzanne Nebesky.