Tampa Man Convicted of Wire Fraud for Misuse of COVID-19 Relief Loan

Under federal law, the crime of wire fraud requires proof beyond a reasonable doubt that the defendant “acted with the intent to defraud” the victim, among other elements. Put differently, the government must show that the defendant acted with a specific intent to cheat someone else for the purposes of financial gain. This can include a scenario where the defendant lawfully obtained money for one purpose yet used it for a completely different purpose.

Judge, Jury Reject Defendant’s “Willful Ignorance”

We continue to see a number of federal criminal prosecutions here in Florida for wire fraud arising from COVID-19 relief programs. Just recently, a federal jury convicted a Tampa business owner of wire fraud and money laundering in connection with a COVID-related relief loan. The defense maintained that the government failed to prove any specific intent to defraud, but both the jury and the trial judge rejected that argument.

The case, United States v. Purvis, involved a defendant who was president of his own company. In 2021, he applied on behalf of his business for an Economic Injury Disaster Loan (EIDL). The EIDL program was part of a broader package of COVID-19 relief established by the federal government. Specifically, these loans were meant to help small businesses pay certain qualifying expenses that they would have been able to pay on their own but-for the pandemic.

Unlike many recent Florida cases involving alleged EIDL fraud, the defendant here ran a legitimate business and qualified for EIDL funds. He managed to obtain $499,000 in loans. The problem, according to prosecutors, was that he did not use this money to pay for legitimate business expenses. Instead, the defendant used the funds for “personal enrichment”–or more precisely, to pay off his gambling debts and his girlfriend’s credit card bills.

A federal grand jury subsequently indicted the defendant for wire fraud and money laundering. At trial, the defendant argued there was never any intent to defraud the government, as he had started making payments on the loan. He also said he never knew that EIDL funds could not be used to pay for personal expenses. In response, the government presented evidence showing the defendant never bothered to read the EIDL application or learn what the funds could (and could not) be used for. The judge further instructed the jury it could consider the defendant’s “willful ignorance” as evidence of intent to defraud.

The jury did so and found the defendant guilty. In August 2024, the judge sentenced the defendant to 33 months in federal prison followed by three years of supervised release. The judge also denied the defendant’s motion for a new trial. He can still appeal.

Contact the Joshi Law Firm Today

Wire fraud and money laundering are both serious federal crimes that can send you to prison for up to 20 years. That is why it is critical to work with a qualified Orlando white collar crime lawyer who can defend and represent your interests. Call the Joshi Law Firm, PA, today at 844-GO-JOSHI or contact us online to schedule a free initial consultation.

Source:

scholar.google.com/scholar_case?case=6230405675697856481