The Department of Justice (DOJ) on Friday reemphasized its commitment to protecting the federal programs providing COVID-related aid when it announced charges against a Beverly Hills film producer for his allegedly false statements to the Small Business Administration (SBA). Where recent Paycheck Protection Program (PPP) fraud cases focused on false statements in the applications, the recent DOJ charges focus on the inappropriate use of the PPP funds. The DOJ alleges that William Sadleir sought more than $1.7 million dollars in forgivable PPP loans guaranteed by the SBA under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In his application to the SBA, Sadleir certified that he would use the funds for legitimate uses. He allegedly claimed that the funds would be used for payroll expenses for his three film-production and distribution companies. The Southern District of New York United States Attorney’s Office also announced charges against Sadleir relating to two additional, but separate, fraudulent schemes.
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