(WNY News Now) – Buffalo, NY – Larry Jordan, a 45-year-old man from Lancaster, NY, was sentenced to 18 months in federal prison for his role in a scheme to defraud the Paycheck Protection Program (PPP), a COVID-19 relief effort. Jordan, along with his brother Sutukh El, was convicted of conspiracy to commit bank fraud and wire fraud.
Fraudulent Loan Applications
Between April and September 2020, Jordan and El submitted eight fraudulent PPP loan applications through companies they controlled, falsely inflating payroll numbers to receive higher loan amounts. The fraudulent applications led to a $605,200 loan for one of the companies, 5 Stems Inc., which claimed to have 194 employees in 2019 when it actually employed only nine. The pair used the funds for personal expenses and investments.
Investigative Efforts
The fraud was uncovered by multiple agencies, including the Federal Deposit Insurance Corporation, the Federal Bureau of Investigation, and the Small Business Administration’s Office of Inspector General. Sutukh El has already been convicted and is awaiting sentencing.
Anyone with information regarding COVID-19 relief fraud can report it through the Department of Justice’s National Center for Disaster Fraud.
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