Palm Beach County Inspector General: Forged documents used in COVID relief fraud cases

Mike Diamond, Palm Beach Post
·3 min read

Palm Beach County's Inspector General has found two more instances of alleged CARES Act fraud, raising the total amount of questionable activity during the past 15 months to more than $160,000 in the county.

The Coronavirus Aid, Relief, and Economic Security Act (CARES) was passed in March 2020 to blunt the economic damage from the global coronavirus pandemic. The package helped employees pay their rent to avoid eviction and provided funds for businesses to stay open.

Across the country, investigators have found instances of fraud. Since the inception of the CARES Act, the US Department of Justice has prosecuted over 192 defendants in more than 121 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained Paycheck Protection Program (PPP) funds, as well as numerous real estate properties and luxury items.

The Coronavirus Aid, Relief, and Economic Security Act (CARES) was passed in March 2020 to blunt the economic damage from the global coronavirus pandemic. The package helped employees pay their rent to avoid eviction and provided funds for businesses to stay open.
The Coronavirus Aid, Relief, and Economic Security Act (CARES) was passed in March 2020 to blunt the economic damage from the global coronavirus pandemic. The package helped employees pay their rent to avoid eviction and provided funds for businesses to stay open.

Palm Beach County has had its share of issues as well. Inspector General John Carey has been monitoring the program for county officials. His fiscal 2022 report identified seven instances of CARES Act fraud totaling $131,478. That does not include two reports submitted in December.

The county has already recouped $50,300 from offenders and has repayment schedules set up with two others for another $23,196. Efforts are ongoing to recover additional funds.

With the coronavirus pandemic plaguing the county during much of the fiscal year 2022, the IG has spent much of its time on investigations related to the county’s disbursement of CARES Act funds. The IG’s annual fiscal year 2022 report said its investigators overall identified a total of $410,831 in questionable expenditures with more than a third of those funds related to the CARES Act.

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More:Inspector General finds third violation of CARES Act, PPP fraud in Palm Beach County

Tenant allegedly forged documents for rental assistance

In December, an IG report was released alleging that a tenant forged documents to obtain rental assistance to avoid being evicted. He claimed Walgreens reduced his hours, preventing him from paying his rent during the COVID shutdown.

The tenant is alleged to have forged Walgreens’ pay stubs and letters stating that his work hours were reduced due to the pandemic. He told the county he was facing eviction from his apartment in Lake Worth Beach for nonpayment of rent. He submitted three applications, all of which contained documents that were “fabricated,” the report states. The county, using CARES Act funds totaling $13,200, paid rent to the tenant’s landlord.

A forged payroll stub with the city of Jupiter misspelled was submitted to county officials by a worker seeking rental assistance. The county is looking to recover more than $13,000 in rent payments. Walgreens has told county officials that the payroll stub was fabricated.
A forged payroll stub with the city of Jupiter misspelled was submitted to county officials by a worker seeking rental assistance. The county is looking to recover more than $13,000 in rent payments. Walgreens has told county officials that the payroll stub was fabricated.

The applicant submitted pay stubs that misspelled Jupiter, the town listed for a Walgreens’ distribution center. It was spelled “Jupitor.” Human Resources officials at Walgreens confirmed that the earnings statements and the letter the applicant submitted from the HR department were “fraudulent,” according to the IG report.

"We found sufficient information to warrant referring our findings to law enforcement for a determination of whether the facts arise to a criminal act," the report stated.

Nail salon allegedly sought $25,000 loan when one had already been obtained

Another IG report, also released in December, claims a former Boynton Beach business, Spa Tique Nails, sought a Payroll Protection Act (PPP) loan when one had already been obtained. On the application seeking a $25,000 forgivable loan, the applicant said she had never before received a PPP loan when, in fact, she received $10,600 two months earlier.

Carey recommended that the county recover the funds, something that the county has said it will pursue. And his findings were also referred to prosecutors for criminal investigation.

Mike Diamond is a journalist at the Palm Beach Post, part of the USA TODAY Florida Network. He covers county government. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.

This article originally appeared on Palm Beach Post: Inspector General finds more CARES Act fraud, cites forged documents