Payback for payroll fraudster

Publisher
US Department of Justice
Date published
March 2021

Relevant impacts: Government outcomes impact and financial impact

A US man fraudulently obtained a US$2.1 million loan by falsely stating that he intended to use the money for employee salaries, rent and utilities for his company. He then used the loan to make multiple personal purchases including a boat worth almost US$700,000 and US$100,000 payment to a former business partner. The man concealed his payments by calling the boat "equipment" and the payments to his partner "payroll."

He also created 39 fake employees and fake identification cards to show that his company was using the funds on payroll.

He faces a maximum penalty of 30 years in prison for bank fraud and false statement charges, and 10 years for each count of money laundering.

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Related fraudster personas

The Fabricator

The Fabricator invents or produces something that is false to dishonestly gain personal benefits.

The Concealer

The Concealer hides their actions from being seen or known about to dishonestly gain personal benefits.

The Exploiter

The Exploiter uses something for a wrongful purpose to dishonestly gain personal benefits.

Related countermeasures

Declarations or acknowledgements

Use declarations or acknowledgments to both communicate and confirm that a person understands their obligations and the consequences for non-compliance. The declaration could be written or verbal, and should encourage compliance and deter fraud.

Clear and specific eligibility requirements

Clear eligibility requirements and only approve requests or claims that meet the criteria. This can include internal requests for staff access to systems or information.

Verify information

Verify any requests or claim information you receive with an independent and credible source.

Confirm identity

Confirm the identity or attribute of the individual. Evidence of identity should be collected and verified using policies, rules, processes and systems to make sure only known, authorised identities can gain access to information stored in networks and systems.

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