Fraudulently obtaining more than $2.5 million in Paycheck Protection Program (PPP) loans has earned a Virginia man an arrest on charges of bank fraud, law enforcement authorities said Tuesday.
In a release, the U.S. Attorney for the Eastern District of Virginia said Didier Kindambu, 48, of Leesburg, fraudulently obtained two loans issued under the PPP, a program installed by Congress in an effort to help businesses affected by the COVID-19 pandemic continue to pay salary or wages to their employees.
According to the U.S. Attorney, Kindambu carried out his alleged fraud scheme in connection with two businesses that he owns by creating fraudulent payroll documentation for each business, then submitting that documentation in support of the PPP loan applications.
In total, Kindambu is alleged to have fraudulently obtained approximately $2,501,753 in loan proceeds, then spent those funds, in part, on items unrelated to any legitimate PPP-related expense, such as a Lexus automobile and a Cessna aircraft.
If convicted, Kindambu faces a maximum penalty of 30 years in prison (although actual sentences for federal crimes are typically less than the maximum penalties, according to the U.S. Attorney). A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The Federal Deposit Insurance Corp.’s (FDIC) Office of Inspector General joined in the announcement of the charges.