A Florida man has been sentenced to six years and two months in federal prison and ordered to pay more than $2.1 million after fraudulently submitting COVID-19 relief loans under the Paycheck Protection Program (PPP).
Valesky Barosy, 27, was sentenced in Fort Lauderdale federal court, according to court records.
He was convicted by a jury on five counts of wire fraud, three counts of money laundering, and aggravated identity theft in December.
According to prosecutors, Barosy submitted dozens of fraudulent PPP loan applications on behalf of himself and his accomplices, seeking more than $4.2 million in loans and successfully obtaining more than $2 million.
The COVID-19 pandemic-era PPP program granted American businesses billions of dollars in forgivable small-business loans to help them stay afloat amid lockdowns, enabling them to pay employees, rent, and utilities, among other things.
The program was part of the COVID-19 relief package, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, that became federal law in March 2020.
Money Spent on Luxury Items
However, in each of his loan applications, Barosy allegedly falsified the applicant’s prior year expenses, net profit, or payroll, and submitted fraudulent Internal Revenue Service tax forms, prosecutors said, adding that for every loan application he submitted, his accomplices paid him a 20 to 30 percent kickback.Instead of putting the fraudulently obtained money to its intended use, Barosy, who is originally from Haiti, allegedly used it to purchase an array of expensive items including a Lamborghini, Rolex watches, and designer clothes.
He then posted photos of the newly-purchased items on his Instagram account in an effort to portray the lifestyle of an immigrant who became a successful entrepreneur, according to reports.
The press release described him as the “youngest executive vice president projected to do over 6 million dollars in sales.”
“It’s been a great journey. Being able to build a team of over 5 thousand distributors nationwide, mentor dozens of people to six figures and 100’s of people to be job free is something that I thought it was only in my dreams,” Barosy said at the time.
Immigrant ‘Success’ Story
The press release also noted that Barosy planned to “create a better world,” starting with “giving more opportunities to people that want to do good.”According to prosecutors, officials later found the fake loan applications and the fabricated tax documents on his computer along with text messages soliciting information from prospective clients.
In one such text message, Barosy allegedly touted his successful ability to “max out ppp,” prosecutors said.
The PPP program allowed qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. However, the interest and principal on the loan are forgiven if the company spends the loan proceeds on certain expensive items such as rent and utilities within a certain period of time after receiving the money.
Businesses must also use a certain percentage of the PPP loan proceeds on payroll expenses to qualify for forgiveness.
The Epoch Times has contacted Barosy’s defense attorney, Omar Lopez, for comment.
