Monroe business owner pleads guilty to money laundering in connection with CARES Act fraud
United States Attorney Brandon B. Brown announced that Michael Ansezell Tolliver, 57, of Monroe, Louisiana, appeared before United States District Judge Terry A. Doughty yesterday and pleaded guilty to one count of money laundering.
In March 2020 Congress enacted the Coronavirus Aid, Relief and Economic Security (CARES) Act which was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic.
As part of the CARES Act, the Small Business Administration (SBA) provided Economic Injury Disaster Loans (EIDL), which were low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters. The CARES Act also provided authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (“PPP”).
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According to evidence presented in court, Tolliver devised a scheme to defraud the SBA and various financial institutions by falsifying PPP and EIDL Program loan applications and other documents to fraudulently obtain funds through these programs. Tolliver submitted these documents in the name of Tolliver Oil & Gas and provided false and fraudulent information specifically related to the number of employees and the average monthly payroll of the company. On or about May 14, 2020, Tolliver electronically submitted a false and fraudulent PPP application to “Bank 3” in the name of Tolliver Oil & Gas seeking approximately $664,724 in PPP funds.
In the PPP application, Tolliver certified that the funds would be used “to retain workers and maintain payroll.” Tolliver falsely represented that the company had 108 employees and that its average monthly payroll was $265,889.60 and even submitted a fake IRS Form 940 for 2019. Tolliver signed the PPP application and certified that the application and all information provided in it were true and accurate., However, Tolliver Oil & Gas had no employees or monthly payroll expenses.
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Thereafter, on or about May 21, 2020, Bank 3 disbursed approximately $664,724 in loan benefits to an account held by Tolliver at “Bank 1.” Using these and other funds, Tolliver made payments on vehicles and other items, including a 2020 Cadillac CT5, 2021 GMC Sierra 1500, two Tissot watches, two Tag Heuer watches, two 2021 Honda Rubicon ATVs, and one 2021 Honda Pioneer ATV.
After receiving the $664,724 in fraudulently acquired PPP loan benefits, Tolliver withdrew approximately $500,065 of those funds in the form of a cashier’s check on June 25, 2020, knowing that the funds were derived from unlawful activity, and deposited them into an account at yet another bank held by Tolliver.
Tolliver faces a maximum sentence of 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentencing has been scheduled for May 2, 2023.
This article originally appeared on Monroe News-Star: Monroe business owner pleads guilty to money laundering
