December 23, 2022
Fraud Friday – Fraudster Applies to Work for Police Department During COVID Fraud Scheme
“The defendant’s guilty plea should reflect our continued resolve to investigate and prosecute those who try to exploit a national emergency to steal taxpayer-funded resources by using the global pandemic as an opportunity to defraud the United States Government,” says Darrell J. Waldon, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office. “IRS Special Agents are committed to working with our law enforcement partners to aggressively uncover and disrupt criminals who conspire to abuse these programs for personal gain.”
Dana Lamar Antonio Hayes Jr. pleaded guilty early this week to a federal wire fraud charge after submitting a fraudulent EIDL application for his previously forfeited and recently revived company. In the application, he included false statements regarding the number of employees and payroll expenses at the company. Additionally, he lied on the applications about having a previous criminal offense, but he was previously placed on probation for a firearm offense, specifically for possession of a stolen firearm. Lastly, he claimed to have $50,000 in company expenses when the company has been inactive since 2019.
The SBA denied the EIDL application, and for 18 months, Hayes continuously contacted the SBA to have the application approved. Eventually, the SBA approved the $15,000 EIDL. When the funds were deposited into the company’s bank account, Hayes transferred all the money into his personal savings account.
Further, Hayes applied for PPP loans using false statements about the number of employees, falsified tax forms, lied about his probation status, and gave false payroll expenses. Two different banks approved the loan applications, and he received a total of $35,036. This money was also deposited into his savings account. Hayes admitted to using the name and Preparer Tax Identification number on the application of a victim who did Hayes’ personal tax returns without the victim’s knowledge or consent.
In November 2021, Hayes applied for forgiveness after claiming he used the entire loan on payroll costs, but the forgiveness application was not approved.
While the fraud scheme was ongoing, Hayes applied to work as the Chief of Fiscal Services for the Baltimore City Police Department. He was hired in April 2022 but was terminated shortly after.
DOJ Press Release