Florida Couple Sentenced To Prison Over $1.1M Bailout Scam: Claimed To Employ 47 People In Backyard Farm

Via press release from the Justice Department:

A Florida couple was sentenced to prison today for their participation in a scheme to file four fraudulent loan applications seeking more than $1.1 million in forgivable Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Latoya Stanley, 38, and Johnny Philus, 33, both of Miami, were sentenced today to 18 and 30 months in prison, respectively. They each pleaded guilty to one count of conspiracy to commit wire fraud on March 8.

As set forth in court documents, in Stanley’s PPP application, she claimed to employ 18 individuals from her company, Dream Gurl Beauty Supply LLC. Philus, meanwhile, stated that he employed 29 individuals at his company, Elegance Auto Boutique LLC. In actuality, Stanley and Philus did not employ anyone at their respective companies.

According to court documents, in her EIDL application, Stanley claimed to generate over $800,000 in income from a farm based in the yard of her Miami home. In his EIDL application, Philus claimed to generate $400,000 in income from a farm located in the yard of a small residential home. But, in reality, Stanley and Philus employed no one and the farms did not exist.