A Las Vegas man has been arrested for fraudulently obtaining nearly $2 million in federal COVID-19 relief funds intended for small, ailing businesses and splashing it out on a life of luxury including downtown condominiums, trips to lavish casinos, a $260,000 Bentley convertible and a Tesla.
Jorge Abramovs was arrested on January 15 and was charged with one count of bank fraud, federal prosecutors from the US Attorney’s office in Nevada said in an unsealed criminal complaint.
He allegedly applied for Paycheck Protection Program funds between April and June 2020 to at least seven banks but lied about the number of his employees and payroll, according to the Las Vegas Review-Journal.
In total he received at least 11 loans from the government meant to help struggling businesses and he flaunted his new wealth on social media, sharing photos on Facebook of his stays at Caesars Palace, gambling at casinos, vacations in Spain and Peru amid the pandemic and his new luxury cars.
An investigation began in August and a detention hearing was held early Friday morning where Abramovs was remanded in custody.
Las Vegas man Jorge Abramovs has been charged with one count of bank fraud for fraudently obtaining nearly $2 million in federal COVID-19 relief funds intended for small, ailing businesses and spending it on luxury purchases for himself
In his applications Abramovs indicated the loan money would be used toward rent and payroll, but instead he bought himself luxury cars and new downtown apartments. On June 3 he purchased a 2020 Bentley Continental GT Convertible for $260,982 with taxes and fees. He shared this Facebook post days prior flaunting the car saying: ‘My new baby as of Tuesday’
Two weeks later on June 18 he purchased a 2020 Tesla Model 3 for $54,904 after a trade-in. He shared this snap of his Tesla charging on Facebook in July
Abramovs completed the loan applications using several company names such as National Investment Group Corporation, National Legal Advisors in Care of and National Investment Group.
According to the company’s vague website, the company offers ambiguous staffing and law firm services. Websites and social media accounts linked to the businesses have been deleted.
Abramovs received at least six loans in the name of NIGC and at least five in the name of NLA.
Abramovs ‘misrepresented the number of employees and the amount of revenue and payroll his companies had’ to the banks and filed for multiple funds and each application included a variation of a S. Fort Apache Road address, according to the complaint.
In one applications Abramovs claimed NIGC had 18 employees and an average monthly payroll of $64,797.
In another he claimed NIGC had 49 employees and an average monthly payroll of $55,235.
‘Financial Overall he allegedly obtained $1,986,737.46 in fraudulent PPP loan funds,’ as per the complaint.
Abramovs claimed to be president, secretary, treasurer and director of National Investment Group. According to its website, the company offers staffing and law firm services
On his social media Abramovs shared snaps of himself gambling in Las Vegas
He shared this snap at Caesars Palace casino in Las Vegas on June 13 saying: ‘Another win!!’
According to the criminal complaint Abramovs used money from the federal loans to purchase two condominiums located in Veer Towers in Las Vegas, Nevada. He purchased the first condo in late May for $225,638.59 and authorities said 80 percent of that money came from the fraud scheme. He purchased another condo in the building in June for $412,000 and 99 percent of that purchase was using loan money, according to the complaint
On each loan application he certified that he would not receive another PPP Loan.
In his applications he indicated the loan money would be used toward rent and payroll, but instead he bought himself luxury cars and new downtown apartments.
‘Financial analysis shows that Abramovs spent the money on purchases of luxury items for himself, including the purchase of a 2020 Bentley, a 2020 Tesla, and two condominiums located in Veer Towers in Las Vegas, Nevada,’ according to the criminal complaint.
On June 3 he purchased a 2020 Bentley Continental GT Convertible for $260,982 with taxes and fees.
Two weeks later on June 18 he purchased a 2020 Tesla Model 3 for $54,904 after a trade-in.
He shared these snaps of his June stay at Caesars Palace in Las Vegas in June
He shared this snap in late June at Veer Towers, where he purchased two condos, saying ‘About to get drinks at Caesar’s!!!’
He purchased his first luxury condo at the Veer Towers, located on Las Vegas’ iconic Strip, in late May.
‘Financial analysis found that of the $225,638.59 spent to purchase this condominium approximately 80 percent constituted criminal proceeds from Abramovs’ PPP loan fraud scheme,’ as per the complaint.
In June he purchased another condo in the same building, this time for $412,000.
In that purchase 99 percent of that purchase ‘constituted criminal proceeds from Abramovs’ alleged PPP fraud scheme.’
However, Abramovs was busted in August when federal authorities inquired with the Nevada Department of Employment, Traning and Rehabilitation to see if there were any payments of unemployment insurance.
Employers who pay more than $225 of payroll in any quarter for employees are required under state law to pay unemployment insurance.
However, they DETR found no records of unemployment insurance payments made by NIGC, the company Abramovs claimed to be president, secretary, treasurer and director of.
On Linked-In he’s listed as the Vice President of the company.
Investigators began surveillance of his business in the fall, describing the address as a ‘storefront’ with fewer than a handful of people inside, according to the complaint.
The bust comes as federal law enforcement is doubling down on fraud related to the CARES Act that was signed into law in March.
Source: | This article originally belongs to Dailymail.co.uk
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