Top prosecutors in Tampa Bay continue to uncover cases of COVID-19 relief fraud

TAMPA - A Riverview man was sentenced recently. The U.S. Attorney’s Office, Middle District of Florida says he was convicted of conspiracy and wire fraud in connection with fraudulently receiving COVID-19 relief funds.

Prosecutors say Alexander Alli, 39, defrauded the Small Business Administration of $82,500, through the Economic Injury Disaster Loan.

The U.S. Attorney’s Office says that despite the end of the COVID-19 pandemic, cases of fraud are still being uncovered.

"It's unfortunate that people took advantage of the situation and committed so much fraud in taking money that was designed to help small businesses that were being crushed by the pandemic," Asst. U.S. Attorney Merrilyn Hoenemeyer said.

Prosecutors say Alli applied for an Economic Injury Disaster Loan.

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"There was both fraud in the application, fraud in how there was money used and then fraud in the cover up," Asst. U.S. Attorney Jennifer Peresie said.

Prosecutors say Alli’s business wasn’t in operation at the time he applied for the loan, and hadn’t been since before the pandemic.

The Middle District of Florida created the COVID-19 Fraud Taks Force in March 2020, in anticipation of attempted fraud of economic assistance programs.

"Unfortunately, we've discovered any time there's a government program to get out money, there are fraudsters who take advantage of it," Peresie said.

As of April, the U.S. Attorney’s Office says it’s prosecuted 81 defendants for COVID-19 fraud violations, with losses totaling $86 million.

"People will create fake businesses or create, you know, fake, payroll tax forms, for example," FBI Forensic Accountant Joshua Tomlin said.

Forensic accountants with the FBI help uncover these cases.

They track them from the beginning, tracing bank statements, withdrawals and major purchases after someone receives the relief funds.

"You can tell from the time the money was deposited into the account, and go from there," FBI Forensic Accountant Gianine Lorie said. "Maybe check the balance that it was, prior, before the deposit."

Prosecutors are still uncovering new cases of fraud, regardless of how large or small the amount of money involved.

"Probably every federal agency and most of the state agencies are now working on some COVID fraud cases, because it is so pervasive in terms of the number of people involved and the amount of money that was lost in this fraud."

Investigators say a lot of suspects in COVID relief fraud cases were linked to other types of fraud cases.