CHARLOTTE, N.C. — This is an official press release from the U.S. Department of Justice (USAO - North Carolina, Western), published as received.
CHARLOTTE, N.C. – A federal grand jury in Charlotte has returned a criminal indictment charging Glynn Paul Hubbard, Jr., 45, of Charlotte, with wire fraud and money laundering, for allegedly obtaining more than $1.2 million in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loans for himself and his customers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Karen Wingerd, Acting Special Agent in Charge of IRS Criminal Investigation (IRS CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, from March 31, 2020, to August 1, 2020, Hubbard, Jr. submitted fraudulent PPP loan and EIDL applications to the U.S. Small Business Administration (SBA) and SBA-approved lenders, seeking to obtain relief funds for his businesses, Borrow My Ride, Balanced Society Corporation, The Regins Corporation, and GGGAB, Inc. To obtain the relief funds, the indictment alleges that Hubbard, Jr. falsified information in loan applications and supporting documentation, and provided false financial information, fake employment data, and fraudulent tax returns for his businesses. As a result of the scheme, the indictment alleges that Hubbard, Jr. received more than $570,000 in fraudulently obtained relief funds.
The indictment further alleges that Hubbard, Jr. also executed the scheme by submitting false and fraudulent applications for PPP and EIDL funds on behalf of customers, causing more than $660,000 in relief funds to be disbursed to his customers. Hubbard, Jr. allegedly promoted the fraudulent scheme through personal referrals and in social media posts where he advertised that he was a PPP loan/EIDL consultant. Over the course of the scheme, Hubbard, Jr. allegedly received improper loan preparer fees for his services totaling more than $150,000, and, to avoid detection, he allegedly required customers to pay the loan preparation fees in cash, via cashier’s checks, or wire transfers.
“Safeguarding taxpayer dollars and protecting disaster relief programs from fraud is a priority for my office,” said U.S. Attorney King. “Federal prosecutors are working side-by-side with investigators dedicated to identifying pandemic-related schemes and holding accountable individuals who sought to exploit COVID-19 economic relief programs put in place to help small businesses in a time of grave need.”
“During the pandemic, the defendant allegedly took advantage of a program intended to provide critical relief for businesses impacted by the COVID-19 outbreak,” said Acting Special Agent in Charge Wingerd. “IRS Cl is committed to bringing to justice to those who have exploited the pandemic for personal gain and have stolen from America’s taxpayers.”
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The wire fraud charge carries a maximum prison sentence of 20 years and a $250,000 fine. The maximum statutory penalty for the money laundering offense is 10 years in prison and a $2500,000 fine.
In making today’s announcement, U.S. Attorney King credited IRS CI for the investigation which led to the charges.
Assistant U.S. Attorneys Caryn Finley and Cassye Cole with the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with U.S. Attorneys’ Offices and agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
