A former U.S. Agency for International Development employee pled guilty in federal court on Wednesday to charges stemming from a Coronavirus Aid, Relief, and Economic Security Act scheme that enabled him to illegally obtain more than $176,000.
Simeon Bakare, 55, of Waldorf, Maryland, pleaded guilty to wire-fraud charges in connection with the scheme. Mr Bakare previously worked on information technology matters for USAID. The prosecution is part of the Trump Administration’s Task Force to Eliminate Fraud.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea with acting special agent in charge Eduardo Santos, USAID Office of Inspector General.
USAID OIG is a statutorily independent law enforcement agency that has continued jurisdiction to investigate criminal activity affecting ongoing U.S. foreign assistance programmes.
The CARES Act — a federal law enacted in March 2020 — provided emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic.
It gives financial assistance, including forgivable loans to small businesses for job retention and other expenses. Established by the CARES Act, the Paycheck Protection Programme — administered through the Small Business Administration — along with the Economic Injury Disaster Loan, helped businesses meet their financial obligations.
According to the guilty plea, beginning in April 2020 and continuing until November 2021, Mr Bakare knowingly and willfully engaged in a scheme to defraud the SBA.
Mr Bakare admitted he submitted, or caused to be submitted, multiple fraudulent PPP and EIDL applications. Additionally, through this scheme, Mr Bakare caused EIDL and PPP benefits to be deposited into bank accounts he controlled.
To further the fraud scheme, Mr Bakare used fabricated documents to support his fraudulent PPP and EIDL applications. Mr Bakare submitted at least five false loan applications to obtain EIDL and PPP benefits, including loan forgiveness, and used fraudulent IRS Schedule C Forms and false attestations regarding the existence of sole proprietorships.
None of the businesses Mr Bakare listed in the applications had significant employees, office space, revenue, cost of goods sold, or business operations. Mr Bakare admitted he used the PPP and EIDL proceeds for improper personal purposes, including car and housing payments and grocery costs.
Mr Bakare faces a maximum sentence of 20 years in federal prison for wire fraud. Sentencing is set for September 3 at 9:30 a.m.
