Federal Court Sentences Man to 18 Months for Pandemic Relief Fraud
Larry Jordan, 45, of Lancaster, New York, was sentenced to 18 months in federal prison for his involvement in a conspiracy to commit bank and wire fraud by submitting fraudulent loan applications for Paycheck Protection Program (PPP) loans, as announced by the U.S. Attorney’s Office for the Western District of New York.
Details of the Fraudulent Scheme
Court documents reveal that between April and September 2020, Jordan and his brother, Sutukh El—also known as Curtis Jordan or Hugo Hermes Hurtington—collaborated to file eight fraudulent PPP loan applications for businesses they owned or controlled. Records show that three applications were submitted to Evolve Bank & Trust, while five were sent to Lendio, a financial technology company based in Utah.
Misleading Payroll Claims
The applications fraudulently inflated the payroll expenses for 2019 to increase the amount of PPP funds their businesses were eligible to receive. To back their false claims, Jordan and El submitted IRS forms that had never been filed with the IRS and provided fabricated payroll registers containing false employee names, personal details, and salaries.
For example, a loan application filed with Evolve Bank & Trust on behalf of 5 Stems Inc. falsely claimed the company employed 194 employees with an average monthly payroll of $242,133.33. In reality, the company had only nine employees, with a total annual payroll of approximately $57,380.
Consequences of the Scheme
Evolve Bank approved the fraudulent application, disbursing $605,200, which was then deposited into an account controlled by Sutukh El. Instead of using the funds for payroll, as mandated, the defendants diverted the money for personal investments, home improvements, and other personal expenses.
Status of Co-Conspirator
Sutukh El has previously been convicted and is currently awaiting sentencing. The case underscores the ongoing efforts of federal authorities to combat fraud related to the COVID-19 relief programs.
