LAS VEGAS, Nev. (FOX5) – A Las Vegas man was sentenced by United States District Judge Cristina D. Silva to two and a half years in prison to be followed by three years of supervised release for devising a scheme to fraudulently obtain more than $550,000 in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loan applications that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, at the time of the fraud scheme, Arian Anthony Bailey, 34, was serving a term of federal supervised release for felony drug and gun convictions. While on release, Bailey devised a scheme to defraud the SBA.
As part of the scheme, Bailey submitted on behalf of businesses – including a home health services business – that did not exist loan applications that contained false information, including false revenue amounts for non-existent companies, and false certifications that Bailey would spend the loan money on business expenses, such as payroll costs, interest on mortgages, rent, and utilities. He also provided fraudulent documentation in support of his loan applications.
In addition to the prison term, Bailey was ordered to pay restitution in the amount of $46,731.39.
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