Prosecutors have charged a nurse in Florida with allegedly defrauding the U.S. government’s Paycheck Protection Program (PPP) for $420,000 and laundered the funds, as reported by Fox News.
In May of 2019, Caraballo opened a bank account for Professional Skills and claimed the company had two employees with annual gross sales of $70,000, according to Fox News. Caraballo then said in June the Florida company had four employees and created $180,000 in revenue from February 2019 to January 2020, Fox News reported. (RELATED: ‘Grim Reaper’ Lawyer Who Stalks Crowded Beaches Targeted By Florida Governor)
Less than a week later, Caraballo applied for a PPP loan on behalf of Professional Skills, and said the company had 28 employees with a monthly payroll cost of $168,000, according to Fox News. Prosecutors are claiming that the information Caraballo provided was untrue, Fox News reported.
#NEW The Small Business Administration launches 3rd round of the Paycheck Protection Program
SBA prioritizing smaller lenders to ensure the most needy businesses receive aid first, will rollout with larger lenders in days ahead
Congress provided $284bn in funding for program
— Greta Wall (@GretaLWall) January 11, 2021
The criminal complaint against Caraballo claims that the $420,000 was never distributed to his employees.
Bank account records do not “reveal any paychecks to employees of PSI. Nor are there any payments to payroll service providers,” prosecutors said, according to Fox News.
Prosecutors believe that Caraballo used the PPP funds for paying off credit cards, child support payments, car and mortgage payments, among other personal expenses, Fox News reported.