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Greensboro man pleads guilty to COVID-19 relief fraudulent schemes

The Department of Justice said through the fraud schemes, the man defrauded consumers and the federal government’s relief programs.
Credit: Getty Images/iStockphoto
Gavel.

A man from Greensboro pleaded guilty Monday to three schemes between March and July 2020 connected to the coronavirus pandemic, according to the United States Department of Justice.

Officials said through the fraud schemes he defrauded consumers and the federal government’s relief programs.

According to the DOJ, 34-year-old Brandon Lewis pleaded guilty to two counts of wire fraud and one count of making false statements to the Small Business Administration.

The Department of Justice said his sentencing has been scheduled for Nov. 30.

“Brandon Lewis admitted to a wide range of bold schemes designed to illegally profit from the COVID-19 pandemic by defrauding frightened consumers and small business owners desperate for a financial lifeline,” said acting assistant attorney general Brian C. Rabbitt of the Justice Department’s Criminal Division.

Rabbitt said the department and their law enforcement partners will continue to aggressively pursue and hold accountable anyone who seeks to illegally exploit the ongoing national emergency for their own personal benefit at the expense of hardworking Americans and businesses.

U.S. attorney Matthew G.T. Martin of the Middle District of North Carolina said Lewis “lined his pockets” by cheating online customers, small businesses, and, ultimately, all taxpayers during a pandemic and as the economy suffered.

“Stealing from people seeking basic health and cleaning supplies while under stay at home orders, and from entrepreneurs struggling to keep their businesses afloat, may be the all-time low of fraud,” Martin said “I commend the excellent coordinated efforts of IRS Criminal Investigation, U.S. Postal Inspection Service, the Small Business Administration Inspector General, and the Treasury Inspector General. We will aggressively investigate and prosecute anyone who tries to profit by preying on people during this pandemic.”

Special Agent in Charge Matthew D. Line of the IRS-Criminal Investigation (IRS-CI) said this is another example of greed controlling one’s actions.

“In a time of crisis and vulnerability in our country, Lewis promised assistance and help, but delivered more heartache and anxiety,” he said.

DOJ said as part of his guilty plea, Lewis admitted he created the so-called “COVID-19 Relief Fund,” which he claimed he managed and oversaw as president and founder of Lewis Revenue Group LLC.

Investigators said Lewis promised desperate small business owners “guaranteed funds” of between $12,500 and $15,000 in exchange for an upfront “reservation” fee of between $995 and $1,200.

“Our office will relentlessly pursue fraudsters that use SBA’s programs for greed and personal gain. I want to thank the Justice Department and our law enforcement partners for their dedication and pursuit of justice," said special agent in charge Kevin Kupperbusch of the SBA's office of Inspector General’s Eastern Region.

Officials said Lewis promoted these “relief funds” through sophisticated marketing and social media campaigns, even using the official trademarks and logos of corporate sponsors without their permission.  

“In the midst of this pandemic, anyone who attempts to engage in illegal activity will be aggressively pursued,” said J. Russell George, treasury inspector general for Tax Administration. 

Officials said Lewis falsely claimed that “the fund had up to $250 million available for small businesses” and provided a link for applicants to “purchase a reservation now.”

DOJ said Lewis also created the so-called “American Relief Fund,” offering $5,000 grants to “every American affected by COVID-19.”

Officials said Lewis never had or gave away any funds through the “COVID-19 Relief Fund” or “American Relief Fund” and said Lewis defrauded small business owners of more than $100,000 through this scheme between April and May.

The department said Lewis also admitted to setting up a website called www.homekitchengoods.com in mid-March where he claimed to sell highly sought after goods such as toilet paper, paper towels and disinfectant wipes.

Officials said between March 20 and 24 Lewis received over 8,500 orders totaling more than $400,000, but never had or delivered any of the promised goods.

Officials said Lewis further admitted, between April 1 and June 19, he lied to the SBA by fraudulently applying for and obtaining multiple loans and advances under the SBA’s EIDL program.

DOJ said Lewis purchased more than 35 “aged, off-the-shelf” corporations, and then submitted approximately 68 fraudulent loan applications and non-refundable grant “advances” of up to $10,000 through the SBA-EIDL program.

Visit the Department of Justice’s website for more information, if you believe you were a victim in the case or if you have any information relating to the case.

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