MARGATE, Fla.–A tax preparer and four three other people he recruited who ran a $27 million Paycheck Protection Program fraud program that has led to guilty pleas and prison sentences, according to federal prosecutors.
The Broward County tax preparer, Wall Dorlus, 41, and his recruits, Marcgenson Marc, 37, of Coconut Creek, Edward Moise, 45, of Coral Springs, and Roberto Geronimo, 40, of Miami Gardens, are already serving various prison terms after pleading guilty to fraud charges. Dorlus submitted a pile of phony Paycheck Protection Program loan applications that were guaranteed by the Small Business Administration, the Miami Herald reported.
Marc was sentenced last week to one year and three months in prison. Dorlus, the ringleader, was previously sentenced to four years; Moise to one and a half years; and Geronimo to nearly six years, the Herald reported. Geronimo’s term also included punishment for his conviction on drug-conspiracy charges. According to factual statements filed with their plea deals, Dorlus played the lead role of the tax preparer who, in exchange for kickbacks, filed approximately 170 fraudulent PPP loan applications. Dorlus admitted that he fabricated the number of employees, payroll expenses, and gross revenues on the applications to qualify for the loans seeking more than $28 million for his companies and more than 100 others, the report stated.
In total, banks approved 33 of the loans for a total of $5.5 million.
Repayment Ordered
As part of their punishment, the four defendants were ordered to repay the loan proceeds to the U.S. government. As the leader, Dorlus collected kickbacks ranging from 12.5% to 25% of the PPP loan proceeds, according to prosecutor Stephanie Hauser with the U.S. Attorney’s Office.
The scheme was uncovered when a separate investigation by the Drug Enforcement Administration and the IRS were investigating a PPP loan application made in the name of a South Florida liquor store.
South Florida Leads Way on Fraud
“As the nation’s No. 1 fraud capital, South Florida has led the financial crime wave that followed the passage of the CARES Act, according to the U.S. Attorney’s Office,” the Miami Herald reported.
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