The U.S. Department of Justice has obtained multiple felony charges as part of its Operation No Doze initiative, which targeted fraud in the Small Business Administration’s small business COVID-era loan programs.
The National Fraud Enforcement Division along with the Small Business Administration (SBA) and the SBA Office of Inspector General obtained felony charges against nearly 80 fraud defendants.
The charges target a range of individuals who allegedly exploited COVID-era SBA loan programs at the height of the pandemic. The SBA-OIG and federal prosecutors got assistance from 40 U.S. Attorney’s Offices and various partners during this summer crackdown, which occurred between June 12 and Sept. 1.
The targeted Operation No Doze surge resulted in fraud enforcement actions spanning over 160 criminal defendants and involved approximately $245 million dollars in intended loss to American taxpayers.
Approximately 43 defendants pleaded guilty to SBA-related COVID fraud, reaching approximately $44 million in intended loss. In addition, approximately 40 defendants were sentenced for SBA-related COVID fraud, reaching nearly $100 million in intended loss.
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” Attorney General Todd Blanche said. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”
Among the charges, Pu Wang and Rui Li are charged with fraudulently obtaining federal grant funds for their company, Vibronix. The DOJ said they falsely represented that the company had no Chinese affiliates and said the funded work was performed in the United States when most of the work was allegedly performed in China.
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” Assistant Attorney General Colin McDonald of the National Fraud Enforcement Division said. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder-to-shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”