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Description: Honolulu, Hawaii criminal law lawyer represented Defendant charged with wire fraud in connection with a scheme to defraud the federal government of program funds intended for COVID-19-related relief.
The Paycheck Protection Program (PPP) is a federal loan program intended to help small businesses survive the COVID-19 pandemic by providing them with funds to cover certain payroll costs, including benefits, interest on mortgages, rent and utilities. The Economic Injury Disaster Loan (EIDL) is a separate federal program providing low-interest loans and grants to small businesses that experience substantial financial disruptions due to federally-declared disasters, including the COVID-19 pandemic.
According to court documents and information presented in court, from May to August 2020, Carey Mills, age 47, of Hilo, Hawaii, submitted multiple applications for PPP and EIDL funds on behalf of three businesses under his control, Kanaka Maoli Hookupu Center, New Way Horizon Travel, and Uilani Kawailehua Foundation, each time utilizing interstate wires. To support the applications, Mills submitted fraudulent payroll documents and IRS forms, which included false employee and wage payment records. As a result of these applications, Mills received $937,575 in the form of three forgivable PPP loans and one EIDL grant to which he was not entitled.
At the sentencing hearing, the prosecution highlighted the fact Mills used the federal relief money to fund personal expenses, including the purchase of eight vehicles and two residential properties. When Chief Judge Watson imposed the sentence, he stated: “Stealing one million dollars of federal funds is no joke.”
“Carey Mills stole federal funds that provided a lifeline to our small businesses struggling as a result of the COVID-19 pandemic,” said U.S. Attorney Clare E. Connors. “While this is the first COVID-19 program fraud sentencing in the District of Hawaii, the Department is committed to investigating and prosecuting those who, like Mills, harmed both small businesses in need of these PPP and EIDL funds as well as the taxpayers who supported these programs.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who attempt to abuse the Coronavirus Aid, Relief, and Economic Security Act and its Paycheck Protection Program, which was created to assist legitimate business owners during the pandemic,” said J. Russell George, Treasury Inspector General for Tax Administration. “We appreciate the efforts of our law enforcement partners and the United States Attorney’s Office to ensure individuals engaged in criminal activity are held to account.”
The investigation was conducted by the U.S. Treasury Inspector General for Tax Administration, together with the Federal Deposit Insurance Corporation Office of the Inspector General, the Small Business Administration Office of the Inspector General, and Homeland Security Investigations. Assistant U.S. Attorneys Rebecca M. Perlmutter and Gregg Paris Yates handled the prosecution.
18:1343.F FRAUD BY WIRE, RADIO, OR TELEVISION
Outcome: Defendant pleaded guilty and was sentenced to 42 Months. Supervised Release: 5 Years. Fine: None. Restitution: $937,575.00. Special Assessment: $100.00. Mittimus stayed until 1/11/2023. Defendant Carey Mills to Self Surrender at the facility designated by BOP on 1/11/2023 by 2:00 p.m.