Date: 10-01-2024

Case Style:

United States of America v. Brett Deuter; Deuter Construction, LLC; Enlighten, LLC

Case Number: 1:23-cv-00348

Judge: Raymond Edward Patricco, Jr.

Court: The United States District Court for the District of Idaho (Ada County)

Plaintiff's Attorney: The United States Attorney’s Of in Boise

Defendant's Attorney:

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Description:

Boise, Idaho criminal defense lawyer represented the Defendant charged with COVID-19 Relief Fraud Allegations
Two Businesses and Their Owner Consent to an $850,000 Judgment to Resolve COVID-19 Relief Fraud Allegations

Brett Deuter and his businesses, Deuter Construction, LLC, and Enlighten, LLC, consented to an $850,000 judgment against them in United States District Court after admitting to violations of the False Claims Act.

The fraud perpetrated by Deuter involved misappropriating funds from two different COVID-19 Relief Programs: the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program.

In the consent judgment, Deuter admitted that Deuter Construction no longer had employees or operations at the time that it applied for PPP funds. Deuter further admitted that the recipient of the PPP funds – Enlighten, LLC – was ineligible to receive funds because it was not in operation prior to the COVID-19 pandemic. Deuter also admitted to falsely stating the PPP loan was exclusively used for payroll and other covered expenses when, in fact, some of the funds were used to cover Deuter’s personal expenses, including personal credit card debt and gambling expenses in Las Vegas, Nevada.

Additionally, Deuter admitted to recklessly making false statements in an application for EIDL funds. Deuter falsely claimed that the EIDL funds would be used as working capital to alleviate economic injury caused by the pandemic. Instead, Deuter used the EIDL funds to pay personal and business debts incurred before the pandemic started. Deuter also admitted that EIDL funds were used to purchase real property in Hailey, Idaho.

“Fighting COVID-19 relief fraud has been, and will continue to be, a priority for my office,” said U.S. Attorney Hurwit. “We will continue to bring to justice those individuals and companies who seek to obtain taxpayer funds through fraudulent schemes or illegal practices.”

This judgment includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Stuart Hallam. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Mr. Hallam will receive approximately $161,500 as his share of the total settlement.

“This outcome demonstrates our unwavering commitment to ensuring relief funds provided through the PPP and EIDL programs are used for their intended purposes,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “The unauthorized use of these funds for personal expenditures undermines the integrity of these programs. The whistleblower award serves as a tool to bring more whistleblowers forward. This result would not have been possible without the qui tam relator and the hard work of our dedicated law enforcement partners.”

This matter was investigated jointly by the U.S. Attorney’s Office for the District of Idaho and the Small Business Administration, Office of Inspector General. Assistant U.S. Attorney Elliot Wertheim handled this case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For additional case information and publicly available court documents, see United State ex rel. Stuart Hallam v. Brett Deuter, et. al., 1:23-CV-00348 (U.S. District Court for the District of Idaho).

Outcome:

Defendants were found guilty and sentenced to $850,000 Judgment to Resolve COVID-19 Relief Fraud Allegations

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