Federal prosecutors announced Monday the indictment of a Georgia man who allegedly collected $30,000 for helping a Charlotte Amalie cake shop cheat the U.S. government’s COVID-era Paycheck Protection Program.
Prosecutors said Raynaldo Oquendo, 38, assisted Mashama Ferdinand in fraudulently inflating the number of employees and payroll requirements of her company in 2020. They allegedly claimed Shama’s Specialties had a payroll obligation of nearly $154,000 when the actual payroll was closer to $20,000, according to court records.
He was charged with wire fraud and conspiracy.
Based on a calculation of $460,079.82 in payroll a quarter, the federal government awarded Shama’s Specialties $383,397 in PPP loans, prosecutors said. But the alleged ruse didn’t hold up long.
After collecting the money, Ferdinand sent three $9,999 payments to three bank accounts controlled by Oquendo, prosecutors said. Banks have to report deposits of $10,000 or more, so $9,999 is a common payment amount for those seeking to avoid detection.
In 2021, Ferdinand pleaded guilty and, in early 2022, was sentenced to 33 months in prison.
United States Attorney Delia L. Smith alleged Oquendo collected nearly $30,000 for his role, which included using his mother’s internet address to submit the fraudulent loan application. If convicted, Oquendo faces a maximum penalty of 20 years in prison and a fine of $250,000.
It was unclear if Oquendo knew of the indictment. Court records filed Monday indicated he lived in Puerto Rico.
