Atlanta couple pleads guilty to $1.9 million in PPP fraud
By Iyani Hughes
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ATLANTA (WGCL) — A husband and wife have pleaded guilty to defrauding the U.S. Small Business Administration or SBA by obtaining approximately $1.9 million in fraudulent loans from the Paycheck Protection Program and Economic Impact Disaster Loan program.
Atlanta natives Tiyari Collins, 38, and Farah Collins, 41, who owned and operated Collins Financial Services Group, a tax-preparation business based in metro Atlanta, also pleaded guilty to filing thousands of fraudulent tax returns resulting in a loss of at least $3.8 million to the IRS.
“The fraud here is outrageous,” said U.S. Attorney Kurt R. Erskine. “Tiyrai Collins defrauded the federal government amid a historic pandemic. It is unconscionable that he and his wife stole from government programs designed to support small businesses and their employees struggling as result of COVD-19 pandemic.”
“These guilty pleas are a victory for the American taxpayers,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “It’s unfortunate that criminals continue to abuse the funds set aside to aid those impacted by the COVID-19 Pandemic. IRS-CI will continue to use our financial expertise to identify fraud, trace the funds, and bring the criminals to justice.”
According to U.S. Attorney Erskine, the charges and other information presented in court: The Coronavirus Aid, Relief, and Economic Security Act (“CARES”) is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, which allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent.
PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
Additional funding was authorized by Congress in December 2020.
Sentencing for Tiyari Collins and Farah Collins is scheduled for March 15, 2022, at 9:30 a.m. and 11:30 a.m. before U.S. District Judge William M. Ray II.
This case is being investigated by the Internal Revenue Service Criminal Investigation and Federal Bureau of Investigation.
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