Liberian National Admits Guilty to 23 Million U.S. Dollars COVID-19 Relief Fraud

Liberian National Admits Guilty to 23 Million U.S. Dollars COVID-19 Relief Fraud

Texas – Acting United States Attorney Chad E. Meacham for the Northern District of Texas announced that a Liberian citizen who orchestrated a conspiracy to obtain more than 23 million U.S. dollars in forgivable Paycheck Protection Program loans admitted guilty to a federal financial crime.

Steven Jalloul, age 43, from Dallas, a tax consultant, was initially charged in September 2020 by a criminal complaint and indicted later that month. Jalloul pleaded guilty on 19th October 2021 to a superseding information charging him with a single count of engaging in financial transactions using property derived from illegal activity.

According to his guilty plea, Jalloul admitted that he defrauded the Paycheck Protection Program lenders while awaiting sentencing in a different tax fraud case.

According to court documents, Jalloul admitted that he submitted approximately 170 fraudulent Paycheck Protection Program loan applications to lenders, including on behalf of a fintech company, seeking over 23 million U.S. dollars for more than 160 customers of his tax preparation company, Royalty Tax & Financial Services LLC.

Jalloul admitted that he increased customers’ employee rosters and monthly payroll costs to raise the amount of Paycheck Protection Program loan funds for which his company would be eligible. Jalloul generally obtained a 2 to 20 percent commission on Paycheck Protection Program funds his clients received and even listed his former wife as Royalty Tax & Financial Services’ authorized representative, without her permission, when seeking an increased Paycheck Protection Program loan for his company.

In total, 97 fraudulent Paycheck Protection Program loan applications were approved, and Jalloul’s customers received more than 12 million U.S. dollars in Paycheck Protection Program funds. Those customers then paid Jalloul at least 972,114 U.S. dollars in fees.

Jalloul faces a maximum of 10 years in federal prison for the Paycheck Protection Program fraud. His sentencing remains pending.

Jalloul is allegedly in jail at FCI-Seagoville, having admitted guilty to tax fraud in a different case in January 2020. In that case, Jalloul was sentenced to six years of federal imprisonment.

The Internal Revenue Service, Criminal Investigation, and the Federal Deposit Insurance Corporation, Office of Inspector General, Dallas Field Offices conducted the investigation. Assistant United States Attorneys Marty Basu and Fabio Leonardi are prosecuting the matter. Assistant United States Attorney Dimitri Rocha is in charge of the asset forfeiture aspect of the case.

The Paycheck Protection Program is provided under the Coronavirus Aid, Relief, and Economic Security Act, a federal law, passed on 29th March 2020 to offer emergency financial help to Americans experiencing economic difficulties as a result of the COVID-19 pandemic. The Paycheck Protection Program initially provided small businesses a maximum of 349 billion U.S. dollars in forgivable loans for payroll expenses and other specific costs, including rent. In April 2020, Congress approved over 300 billion U.S. dollars in additional Paycheck Protection Program funding. The Paycheck Protection Program allows eligible small businesses to obtain loans with an interest rate of one percent and a maturity of two years. Additionally, the Paycheck Protection Program allows both the principal and interest on the loan funds to be forgiven if the recipient business used the funds on certain expenses within a specified period.

On 17th May 2021, the AG (Attorney General) formed the COVID-19 FETF (Fraud Enforcement Task Force) to gather together the resources of the Justice Department in collaboration with agencies across the U.S. government to boost efforts to fight and stop pandemic-linked fraud. The COVID-19 Fraud Enforcement Task Force bolsters efforts to inquire and litigate the most liable domestic and global criminal actors and helps agencies responsible for administering Covid-related relief programs to stop fraud by, amongst other methods, incorporating and augmenting in place coordination mechanisms, pinpointing out techniques and resources to expose criminal actors and their plots, and sharing and utilizing data and insights acquired from past enforcement efforts.

Breaching the Anti-Kickback Act, the False Claims Statute, and the Controlled Substance Act,  is severely punishable by law. Additionally, conspiring to perpetrate health care fraud such as defrauding Medicaid, TRICARE, and Medicare programs is a serious offense. Any individual who commits these offenses breaks the law and is seriously penalized if found liable for the claims. Once indicted with these crimes, you should look for the best legal presentation or advice to pursue and protect your rights. Employ our professional team of top-rated criminal and defense attorneys if you want the finest legal assistance and presentation, which will result in attaining excellent results for your issue. At Health Care Fraud Group, we possess an experienced team of attorneys with tremendous skills and experience tackling Health Care fraud-related matters related to the Federal Healthcare Programs; they possess excellent knowledge about federal and civil matters. The defense attorneys are well known across the United States because of their exceptional professionalism and work while tackling health care fraud inquiries and cases. Our attorneys are well-equipped with prior knowledge of every aspect of Health Care Fraud, medical, legal, and defense issues.

Our offices operate 24/7 since they are always open, and we are ready and well-prepared to begin your defense immediately. Our law firm is the most highly regarded because we regularly update our knowledge and practices to act swiftly on your case without the need for continuous legal consultations. We provide a safe and quick assessment of your issue and work swiftly to collect, obtain, and gather the necessary and critical particulars pertaining to your case in the government’s investigations. Once employed, we will assist you and your team in making the best and right decision. Our highly trained team of lawyers will guide and support you, when necessary, in anything you may require to know and further educate your team to help in your criminal defense successfully; because there are various critical mistakes you must avert when facing health care fraud investigation.

Additionally, we will provide you and your team with comprehensive legal defense and assistance in inquiries and cases that are in charge, as well as those in other firms or institutions that cover the FBI and the IRS, and matters and investigations that are under the mandate of the DOJ, DEA, DHHS-OIG, and CMS. We will also investigate possible health care fraud and safeguard both you and your profession. Our highly trained lawyers at the HCFG are knowledgeable and have a clear understanding of the need to prove innocence after the allegation of any offense. For any legal support, representation, and advice you may require, contact us at 888-402-4054.

Schedule a Confidential Initial Compliance Assessment with Our Federal Health Care Group