Payam Javan: Six individuals, including a former IRS revenue agent named Frank Mosley, have been charged by the U.S. Attorney’s Office for their involvement in fraudulent Payroll Protection Program (PPP) loan applications. The accused individuals are alleged to have fabricated documents between July 2020 and September 2021 in order to obtain government loans intended to support businesses during the COVID-19 pandemic. The four businesses involved were found to be empty shell corporations with no actual employees. Court records indicate that the defendants obtained approximately $3 million in loans through the scheme.

Frank Mosley, along with his brother Reginald, applied for their first PPP loan in August 2020. After receiving over $1 million, Reginald Mosley reportedly recruited three friends to assist in a scheme where the brothers drafted loan applications in exchange for a portion of the funds. Evidence presented includes emails discussing a kickback of at least 15%. In an attempt to conceal their actions, the Mosley brothers submitted false payroll tax forms to the IRS.

A sixth defendant is also facing charges for aiding and advising the Mosley brothers in their loan applications. The accused individuals face various charges, including conspiring to commit bank fraud, which carries a maximum prison sentence of 30 years, and filing false tax returns, which could lead to an additional three-year jail term. Restitution orders may also be imposed by the court. The defendants are expected to appear in court the following week to face the charges against them.