Tesla Model 3, $ 2.2 million seized from man who fraudulently obtained COVID-19 relief loans
Maryland man charged with wire fraud after obtaining multiple COVID-19[female[feminine relief loans. The man successfully received a payment of $ 1.5 million from the Paycheck Protection Program and then had $ 2.2 million and a Tesla Model 3 seized by various enforcement agencies. law.
Rudolph Brooks, Jr., 45, of Cheltenham, Md., Downstate, was the subject of a criminal complaint on March 29, 2021 and was subsequently arrested on April 2. Law enforcement agencies such as the Baltimore Field Office of the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS) announced the complaint following several attempts by Brooks, Jr. to obtain COVID-19[female[feminine fraudulent relief loans.
It appears that Brooks got several checks meant to help small businesses, including the Paycheck Protection Program which was introduced to help small businesses survive throughout the COVID-19[female[feminine pandemic. While Brooks is the owner of a small business, he “reportedly submitted fraudulent tax forms that reported $ 724,469 in payments via 1099-MISC forms and $ 7,471,630 in total unemployment payments to Cars Direct employees” the Justice Department said in a statement. Press release.
Brooks received a loan of $ 1,556,589 and was deposited into the bank account he entered on May 9, 2020. One of his purchases was on July 30, where Brooks made a wire transfer to Tesla. in the amount of $ 60,407 for the purchase of a 2018 Tesla Model 3. DOJ’s affidavit indicates that Brooks was, in fact, the purchaser of the vehicle. The Model 3 was also registered in Brooks’ name and at its address in Cheltenham.
A total of $ 2,296,136.86 was seized on eleven bank accounts, and the 2018 Tesla model 3 was also recovered by the Department of Justice. The penalties carry a maximum sentence of 20 years in federal prison for wire fraud, followed by three years of supervised release.
While accelerating the transition to sustainable energy is undoubtedly Tesla’s main interest, buying an all-electric car through fraudulent actions is not ideal for helping the environment. Brooks also bought 38 other used cars, the DOJ said. Some of the vehicles were a 2017 Mercedes Benz S-Class, two 2017 Infinity Q50s, a 2015 Cadillac Escalade, a 2005 Bentley Continental, a 2014 GMC Yukon XL and several older luxury vehicle models. The terms of the PPP loan do not show that the purchase of these vehicles constitutes an appropriate use of the funds. The business must use the PPP loan for salary costs, mortgage interest, rent, and utilities.