"Deceptive scheme after deceptive scheme unfolds": Exposing the $9 million pandemic aid swindle orchestrated by a Delaware tax consultant
Federal Investigation Uncovers $9 Million PPP Fraud Scheme in Delaware
In a shocking revelation, Delaware tax adviser Jady Solano has pleaded guilty to running a large-scale fraud scheme involving fabricated Paycheck Protection Program (PPP) loans totaling approximately $9 million. Solano and his co-defendant, Lawrence, admitted to bank fraud, wire fraud, and money laundering related to 62 fictitious loans [1][5].
The fraudulent loans, amounting to $141,272.50 on average, were 2.5 times the fictitious payroll amounts [2]. Most of the recipients sought and received loans under $150,000, a threshold that did not require documentation for loan forgiveness if at least 60% was spent on payroll [3].
Solano instructed the recipients to falsely mark the payments as being for "tax" or "bookkeeping" and to split them into pieces, sending them to multiple accounts that Solano controlled [2]. He also directed recipients to have the bogus employees deposit the money into their personal accounts, only to return it within days [2].
The application for the PPP loan listed eight employees and a monthly payroll of $56,509 [4]. However, the form's metadata showed that it was created on the day the application was submitted to the bank, in March 2021 [4].
Solano's lawyer questioned why the Trump and then Biden administrations didn't have systems in place to identify fraudulent applications but acknowledged that the government's lax approval process didn't absolve Solano for his greed and opportunism [5].
Solano pleaded guilty less than three months after he was charged in July 2024 [6]. Despite his guilty plea, the federal investigation remains active with additional defendants and cases under prosecution or preparation in Delaware [1].
Authorities, including Delaware’s acting U.S. attorney and the FBI, publicly condemn PPP loan fraud and affirm ongoing efforts to prosecute [1]. Broader PPP fraud investigations nationally have identified common red flags and continue aggressively in multiple jurisdictions [2].
The federal investigation into PPP fraud in Delaware serves as a stark reminder of the importance of accountability and the commitment to protecting taxpayer funds.
[1] https://www.justice.gov/usao-de/pr/delaware-tax-adviser-pleads-guilty-orchestrating-9-million-ppp-loan-fraud-scheme [2] https://www.justice.gov/usao-de/pr/delaware-tax-adviser-pleads-guilty-orchestrating-9-million-ppp-loan-fraud-scheme-and [3] https://www.justice.gov/usao-de/pr/delaware-tax-adviser-pleads-guilty-orchestrating-9-million-ppp-loan-fraud-scheme-and [4] https://www.justice.gov/usao-de/pr/delaware-tax-adviser-pleads-guilty-orchestrating-9-million-ppp-loan-fraud-scheme [5] https://www.justice.gov/usao-de/pr/delaware-tax-adviser-pleads-guilty-orchestrating-9-million-ppp-loan-fraud-scheme-and [6] https://www.justice.gov/usao-de/pr/delaware-tax-adviser-pleads-guilty-orchestrating-9-million-ppp-loan-fraud-scheme
The revelation of the PPP fraud scheme in Delaware highlights the intersection of politics and business, as the scheme involved the misuse of government funds meant for supporting small businesses during the pandemic. This incident underscores the importance of finance regulations in preventing such crimes, given their potential impact on the economy and general-news headlines. The ongoing federal investigation, competent authorities, and the media's attention on the case emphasize the significance of crime-and-justice within the realm of finance and business.
