GREENBELT, Md.–Another person has been charged with PPP fraud in which more than a million dollars was misused to buy three-dozen luxury cars, make mortgage payments and more.
The U.S. Attorney for the Maryland District said Randolph Brooks Jr., 45 of Cheltenham, Md., has been charged with wire fraud. According to an affidavit filed with the criminal complaint, the U.S. Attorney alleged Brooks applied for a Paycheck Protection Program (PPP) loan in 2020 of more than $1.5 million by using phony tax forms to back up his claims proving eligibility for the loan.
The indictment further alleges that after securing the loan, Brooks used a complex web of bank accounts to distribute the loan’s proceeds, largely to himself.
In addition, he also allegedly used the funds from those accounts to purchase 39 automobiles (including a Mercedes Benz S Class, two 2017 Infinity Q50s, a 2015 Cadillac Escalade, a 2005 Bentley Continental, and a 2018 Tesla Model 3).
“Under the terms of the PPP loan program, the purchase of these vehicles is not an appropriate use of loan funds,” the U.S. Attorney said.
Tesla Purchased
The affidavit states that on July 30, 2020, Brooks initiated a wire transfer from his personal account to Tesla Motors for $60,407, which was used to purchase a 2018 Tesla Model 3.
“‘Rudolph Brooks’ was listed as the customer for this vehicle, and a District of Columbia driver’s license was on file for a close relative of Brooks. Records from the State of Maryland reflect that the Tesla Model 3 was registered in Brooks’ name at Brooks’ Cheltenham residence,” according to the affidavit.
The U.S. attorney further alleges Brooks used the proceeds of the PPP loans for personal expenditures including credit card bills, purchases at restaurants, retail stores, grocery stores, automotive auctioneers, and mortgage payments for his Cheltenham, Md. residence.
Warrants for Seizures
In addition, the U.S. Attorney said, warrants authorized the seizure of up to nearly $2.3 million from 11 bank accounts and the 2018 Tesla Model 3. The affidavit in support of the seizure warrants alleges that these funds and vehicle constitute or are derived from the proceeds traceable to false statements made on bank loan applications.
Brooks, who was arrested April 2, faces a maximum sentence of 20 years in federal prison for wire fraud followed by three years of supervised release if convicted.