PPP loan fraud allegations continue; in latest, more than $13 million in alleged phony applications by MA man

Charges against a Massachusetts man for seeking more than $13 million in phony borrowings through the federal program that provides forgivable loans to business owners affected by the coronavirus crisis were announced Tuesday as the parade of alleged fraud cases involving the program continued.

The U.S. Department of Justice said it has charged Elijah Majak Buoi, 38, of Winchester, Mass., with wire fraud for allegedly submitting fraudulent applications for more than $13 million in loans through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP).

According to the complaint, Buoi is the president and CEO of the information technology services company, Sosuda Tech LLC. The complaint claims that between April 2020 and June 2020, Buoi allegedly submitted the fraudulent applications for the PPP loans through SBA-approved lenders.

“In these applications, Buoi misrepresented the number of employees and payroll expenses and falsely certified that the United States was the primary residence for his employees,” the agency said. “Buoi also allegedly submitted falsified documentation in support of his applications for PPP funds.”

The law enforcement agency said the complaint further alleges that Buoi ultimately received more than $2 million in PPP funds. The government has seized approximately $1.98 million from Sosuda’s business bank accounts, the Justice Department said.

The agency said both the SBA’s and Federal Deposit Insurance Corp.’s (FDIC) offices of inspector general participated in the investigation.

Owner of Information Technology Services Company Fraudulently Sought More than $13 Million in Small Business Administration Paycheck Protection Program Loans