North Carolina man indicted for $1.5 million COVID-relief fraud


FILE: $100 bills. (NEXSTAR)

CHARLOTTE, N.C. (FOX 46 CHARLOTTE) – A federal grand jury in Charlotte has indicted a North Carolina man for fraudulently obtaining more than $1.5 million in COVID-19 relief guaranteed by the Small Business Administration through the (PPP) Paycheck Protection Program.

According to allegations, Maurice Kamgaing, 41, of Archdale, N.C., and a former Charlotte resident, fraudulently obtained more than $1.5 million in COVID-relief funds, by submitting fraudulent PPP loan applications to a federally insured financial institution on behalf of two businesses.

The indictment alleges that the two PPP loan applications contained false and misleading information and fraudulent supporting documentation about the two businesses, including fake federal tax filings and payroll reports.

As alleged in the indictment, on April 7, 2020, Kamgaing filed a fraudulent application for a PPP loan for Apiagne, Inc. The Apiagne PPP application allegedly included false information about the company’s purported payroll, and fraudulent documentation about its monthly payroll disbursements.

For example, according to the indictment, Apiagne’s PPP loan application falsely represented that the company had an average monthly payroll of $260,000 and needed the loan to support its ongoing operation and its 46 employees.

As a result of the fraudulent representations, on or about May 6, 2020, Apiagne received a PPP loan for $856,463, which Kamgaing used for unauthorized purposes and for his personal benefit.

According to allegations in the indictment, on April 27, 2020, Kamgaing filed another fraudulent PPP loan application on behalf of AKC Solutions, which falsely represented that the company had 23 employees, and had an average payroll of $260,000.

As a result of the fraudulent representations, a PPP loan for $650,000 was disbursed by a financial institution on May 5, 2020, and within days of receiving the loan Kamgaing allegedly used the proceeds for improper purposes and personal expenses.

Kamgaing is charged with wire fraud in relation to a disaster benefit which carries a maximum prison sentence of 30 years in prison; two counts of making false statements to a bank which carry a maximum penalty of 30 years in prison per count; and two counts of engaging in monetary transactions in criminally derived property, which carry a maximum prison term of 10 years per count.

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