DOJ: CPA Pleads Guilty to Committing $2.3 Million COVID-era Loan Fraud

• Simpson filed 111 fraudulent PPP loan applications using false information and fake tax returns.
• He charged clients, including Amtrak employees, fees of $2,000-$3,000 to secure pandemic relief loans.

Jawan Simpson, a tax preparer and CPA, admitted to wire fraud for submitting 111 fraudulent PPP loan applications during the COVID-19 pandemic. He promised clients, including family, friends, and Amtrak employees, that he could secure forgivable relief loans for a fee.

Simpson created fake tax returns and other bogus documents to support the fraudulent applications, resulting in a loss of $2.3 million in government funds. The case was investigated by the FBI and Amtrak Office of Inspector General and prosecuted by the DOJ.

• $2.3 million government funds lost to fraud
• 111 fraudulent PPP loan applications filed
• $2,000-$3,000 fee charged per client for loan assistance

• Review PPP loan applications submitted by Jawan Simpson and associated clients for false information and fake tax returns.
• Screen for similar fee structures ($2,000-$3,000) among tax preparers promising forgivable pandemic relief loans.
• Audit PPP applications involving Amtrak employees and clients linked to Simpson for potential fraud indicators.

This case highlights the risks of trusted professionals exploiting emergency relief programs for personal gain, resulting in significant financial losses. Compliance officers must be vigilant in detecting fraudulent loan applications, especially those involving false documentation and fee-based schemes. The involvement of multiple investigative agencies underscores the importance of inter-agency cooperation in protecting taxpayer-funded programs and maintaining the integrity of pandemic relief efforts.