A Multimillion-Dollar Tax Fraud: Defendant Pleads Guilty In a PPP Loan Fraud Scheme

A California man named Thanh Ngoc Rudin pleaded guilty to conspiring to defraud the IRS and the Paycheck Protection Program (PPP). He was the principal of Mana Tax Services, which is a tax preparation business. He committed two different sets of fraud schemes under Mana Tax.

Rudin accomplished this with his brother, Quin Ngoc Rudin, and Seir Havana. They filed a series of false income tax returns on behalf of nine professional athletes with the IRS. They claimed to seek refunds to which they were not entitled. The false information included bonus claims for the earned income tax credit and fraudulent claims for business losses.

Furthermore, they told the athletes Mana Tax might help them amend prior years’ returns for errors made by their previous accountants. They charged a fee of 30% of the expected refunds that they were not entitled to receive. Moreover, they showed a high number of employees and monthly payroll to file for a PPP loan on behalf of small businesses. They were charging 30% of the loan received under Mana Tax from the small business owners.

This ordeal started in June 2019 and lasted till July 2021. The government was able to seize more than $11.8 million. Besides, Seir Havana surrendered $5.6 million worth of cashier checks. They grossed this amount from the fees charged for filing fraudulent PPP loans and tax returns. As a result, there was a loss of more than $25 million.

Scheduled to be sentenced on November 9, Rudin faces a sentence of 5 years for conspiracy to commit tax fraud and 20 years for the conspiracy of wire fraud. His partners in crime, Quin Rudin and Havana, pleaded guilty on May 13 and July 20, respectively. Quin Rudin has sentencing scheduled for September 14 and Havana for November 9. They all will face a similar fate for their conspiracies.

Learn about the Paycheck Protection Program

Protection Program (PPP) is a loan program helping small businesses keep their companies alive during the COVID-19 pandemic. The program offers loans of up to $10 million, or 2.5 times the monthly payroll. This may be used to cover payroll and other expenses.

The Small Business Administration (SBA) has set up PPP to offer loans for businesses with less than or equal to 500 employees. Any business may apply for a loan via any SBA-approved lender.

The PPP loan has a low-interest rate of 1%, with loan payments deferred for six months. This loan amount may be utterly forgivable if used as per the rules. Per the rules, 60% of the loan must be used for payroll and 40% for utilities.

What is Paycheck Protection Program Fraud?

PPP has been significant financial assistance to small businesses since the outbreak of the COVID-19 pandemic. Sadly, there have been reports of fraudsters taking advantage of this program to try and steal money from honest companies. This is known as PPP fraud.

PPP fraud can take many forms, but some of the most common include making false claims about being eligible for the program or providing incorrect information about the number of employees a business has.

If you’re considering applying for the PPP, it’s crucial to ensure you’re eligible and understand the requirements. And if you do receive PPP funding, be sure to use it for its intended purpose: to help keep your employees on the payroll.

What do you need to know about the PPP fraud charges?

The Paycheck Protection Program was established to help small businesses keep their employees during the pandemic. However, some companies have been accused of fraudulently receiving PPP loans. This may be international or unintentional, as some businesses may have made a genuine mistake while filing for the loan.

Since it’s hard to confirm if the scenario was unintentional or well-planned, many businesses have been under investigation by the Justice Department.

If you’ve been charged with PPP fraud, you must understand the allegations against you. PPP fraud charges can be either civil or criminal, and you could face severe penalties if convicted.

PPP fraud charges are brought by the Small Business Administration (SBA). These charges allege that you made false statements or misrepresentations on your PPP loan application. You could be required to repay the loan plus interest and penalties if convicted.

The Justice Department brings criminal PPP fraud charges. These charges allege that you knowingly submitted false information on your PPP loan application. You could face up to 30 years in prison and a fine of up to $1 million if convicted.

If you’ve been charged with PPP fraud, it’s essential to seek the advice of an experienced attorney. An attorney can help you understand the charges against you and develop a defense strategy.

How can a criminal defense attorney help with Paycheck Protection Program fraud?

Being aware of the risks of PPP fraud can help protect yourself and your business from becoming a victim. When you are charged with a crime, it is crucial to have an excellent criminal defense attorney on your side. PPP defense attorney Daniel Perlman is an experienced individual who can represent you in a PPP fraud case.

He will offer you the best advice and legal strategies for the case. You’ll be aware of your rights in court by working closely with his firm. If you have been charged with Paycheck Protection Program fraud, a criminal defense attorney can help you in several ways.

A criminal defense attorney may help you understand the charges against you and the prosecution’s evidence. This is important so that you can make informed decisions about your case.

Besides, a PPP attorney may help you develop a defense strategy. This may involve challenging the evidence against you or arguing that the charges are inappropriate in your case. Lastly, a criminal defense attorney can represent you in court and advocate for your rights.

This includes ensuring that you are treated fairly by the court and receive a fair trial.

A criminal defense attorney can be your savior if you have been charged with Paycheck Protection Program fraud. Contact a criminal defense attorney Daniel Perlman today to discuss your case.