Justice Department Announces Another PPP Fraud Charge

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The Justice Department Monday charged a Massachusetts IT CEO with wire fraud after he submitted fraudulent applications for $13 million in emergency coronavirus rescue funds for small businesses—the charges come amid a push for greater transparency into the federal government’s massive spending on relief programs.   

KEY FACTS

Elijah Majak Buoi, a 38-year-old CEO of an information technology company called Sosuda Tech LLC, allegedly submitted fraudulent applications for $13 million in Paycheck Protection Program loans by misstating the number of employees, payroll expenses, and whether his employees primarily reside in the United States. 

The Justice Department also alleged that Buoi falsified the documents he submitted with his application.

Buoi, who ultimately received $2 million in PPP loans, was arrested and has been charged with wire fraud; he is set to appear in court in Boston on Monday afternoon. 

The Justice Department said the government has seized approximately $1.98 million from Buoi’s company accounts. 

The first PPP fraud charges—two men who sought more than half a million dollars in loans by claiming to have dozens of employees across four businesses, when in fact they had no employees at all—were announced in May. 

Last week, after weeks of complaints from Democrats, watchdog groups, and media companies, the Small Business Administration (which oversees the PPP) announced that it would release the names of businesses that received PPP loans worth more than $150,000 and less than $10 million. 

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