
A local resident from Ithaca, New York, Ejembi Onah, was found guilty on five charges this week. The verdict came from a federal non-jury trial linked to allegations of misuse of Payroll Protection Program (PPP) loans during the COVID-19 crisis.
Two counts of wire fraud and three counts of transactions with illegally obtained property- often referred to as money laundering – were the charges for which Onah was convicted. Claiming a total of over $140,000 in loans, Onah spent the funds through different transactions, according to federal prosecutors. The expenditure included paying overdue rent, leasing a luxury vehicle and other daily living costs.
According to the official court files, 60-year-old Onah obtained loans through a couple of lenders authorized by the Small Business Administration. He achieved this by applying for the loans on behalf of two alleged “seasonal nanotechnology” firms. Investigation revealed that while both businesses were established in the mid-2000s, there was little proof that they were functioning when Onah applied for the PPP loans. He wrongfully claimed supporting three employees.
Federal officers also found that Onah fabricated banking records throughout the loan application process. His interaction with bank employees raised suspicions, as illustrated by email correspondence with Onah included in the formal complaint.
The sentencing for Onah is set for February. Each count of wire fraud and money laundering can lead to a lengthy prison term. Other possible consequences include supervised release after jail time for a maximum of three years, restitution and a hefty fine of up to $250,000.
Matt Butler, the reputable Editor-in-Chief of The Ithaca Voice, can be contacted via email at mbutler@ithacavoice.org.
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Contents
Frequently Asked Questions
What is the federal non-jury trial?
In a federal non-jury trial, also known as a bench trial, the judge takes on the role of the jury. That is, the judge determines the facts, in addition to ruling on the law.
What is PPP Loan Fraud?
PPP loan fraud refers to instances when individuals or companies misuse the Payroll Protection Program loans, often claiming false information or spending the funds on unauthorized purchases.
What are the penalties for PPP Loan Fraud?
PPP Loan Fraud is a serious offense and may lead to severe penalties like long-term imprisonment, supervised release, restitution, and substantial fines, based on the severity of the crime.