SCV man pleads responsible to organising shell firms to accumulate over $ 1 million in COVID reduction loans
A person from the Santa Clarita Valley pleaded responsible on Tuesday in federal court docket to organising shell firms to fraudulently purchase greater than $ 1 million in COVID-19 reduction loans.
Raymond Magana, 40, of Santa Clarita, pleaded responsible to 1 depend of fraud in reference to a serious catastrophe or emergency advantages in reference to a rip-off that occurred between Might and June 2020.
The plea deal Magana signed stated that over the previous two months of the previous 12 months, he falsified paperwork and wage bills to point out massive numbers of staff that he may very well be reimbursed by this system. federal authorities PPP loans. The one downside was, investigators later found, that the payroll bills and monetary statements had been completely fabricated.
Even the deal with at which Magana’s firm, The Constructing Circle LLC, was speculated to be headquartered and home 40 employees, was deemed imaginary: what was listed at Pico Rivera’s deal with was truly a 980-foot single-family dwelling. squares. home that seemed to be a residence, not a enterprise.
In whole, Magana admitted to submitting fraudulent tax paperwork exhibiting $ 4,402,000 in annual salaries paid to 40 staff in 2019 and $ 852,000 paid in worker salaries within the first quarter of 2020, based on federal prosecutors. The Constructing Circle LLC mortgage was lastly authorised for $ 940,416 and Magana obtained the funds on June 4.
Along with the The Constructing Circle LLC mortgage, Magana additionally admitted to utilizing false tax paperwork and worker data to falsely declare $ 1.73 million in worker salaries, the plea settlement says.
He obtained a PPP mortgage of $ 360,415 for this second entrance firm, Ahead Builders LLC.
The supervisor of the financial institution Magana was holding the mortgage cash was the primary to tell her that her account had been frozen attributable to “suspicious exercise,” prosecutors stated. The financial institution was capable of freeze $ 940,416 within the defendant’s account, however $ 360,415 of taxpayer cash was nonetheless misplaced within the rip-off, Magana admitted.
Magana is predicted to return to court docket on Might 11 for a sentencing listening to, throughout which Magana will face a potential most sentence of 30 years in federal jail.
Steven Goldstein, 36, of Northridge, Magana’s enterprise accomplice, pleaded responsible in December to the identical expenses as his Santa Clarita-based accomplice. His sentencing listening to is scheduled for Might 30.