Joe.My.God. LGBT News
From the Justice Department:
The Honorable Deborah L. Boardman sentenced Rudolph Brooks, age 48, of Cheltenham, Maryland, to 18 months in federal prison followed by 2 years of supervised release for fraudulently obtaining over $3.5 million in COVID-19 Coronavirus Aid, Relief, and Economic Security (“CARES”) Act Payroll Protection Program (PPP) loans.
The Court also ordered Brooks to forfeit all property and assets derived from or obtained as a result of his criminal activity, including a 2018 Tesla Model 3, property located in Upper Marlboro, Maryland, and at least $2,231,141.49 from 17 bank accounts controlled by Brooks.
According to court documents, between April 2020 and September 2021, Brooks, who at times served as pastor at Kingdom Tabernacle of Restoration Ministries, participated in a scheme to fraudulently obtain PPP loans, used the loan proceeds for his personal enrichment, and concealed his misappropriation of the funds by laundering the loan proceeds.
As stated in the plea agreement, Brooks used several entities to apply for PPP loans, including Cars Direct by Gavawn HWD Bob’s Motors (Cars Direct), Kingdom Tabernacle of Restoration Ministries, and Madaro, LLC.
In each case, Brooks grossly inflated the number of employees and average monthly payroll, and submitted fraudulent IRS Forms 940, Employer’s Annual Federal Unemployment Tax Return, and other fraudulent IRS forms to support the loan applications.
For example, on May 12, 2020, Brooks received $1,556,589 in fraudulently-obtained PPP loan proceeds, deposited directly into a Cars Direct bank account on which Brooks was the sole signator.
He also received $1.8 million in fraudulently obtained PPP loan proceeds, deposited directly into a Kingdom Tabernacle bank account on which Brooks was the sole signator.
Similarly, on May 13, 2020, Brooks received $204,266 in such proceeds, deposited directly into a Madaro bank account in which Brooks was the sole signator.
Brooks admitted that he used the loan proceeds for his personal benefit and on payments and purchases not permissible under PPP, such as for a residence; for a luxury vehicle; and, for restaurant, retail store and grocery purchases.
Brooks also made cash withdrawals and transfers to other accounts under his control. For example, Brooks opened a bank account in the name of Payroll by BJM, into which he transferred $500,000 of the Cars Direct PPP loan proceeds.
Brooks also registered Payroll by BJM with the Maryland State Department of Assessments and Taxation, listing himself as “member” and sole signator. Although the name Payroll by BJM created the appearance that the account was associated with a payroll company, there were no payroll or payroll-related expenses paid from this account.
In addition, Brooks initiated numerous transfers of PPP loan funds, totaling approximately $196,000, from the Cars Direct account to his personal bank accounts.
Of this amount, Brooks wired $60,407 to Tesla Motors Inc. on July 30, 2020, to purchase a 2018 Tesla Model 3 in the name of Brooks’ son, which was ultimately registered in Maryland in Brooks’ own name.
On February 5, 2021, Brooks transferred $750,000 in proceeds from the Kingdom Tabernacle PPP loan to a bank account in the name of Madaro, for which Brooks was the sole signator.
On May 17, 2021, Brooks initiated a wire transfer of $507,010 to a title company to purchase property in Upper Marlboro, Maryland, in the name of “Rudolph Brooks.”
From my April 2021 report:
Brooks Jr., founder and senior pastor of the Kingdom Tabernacle of Restoration Ministries in Washington, D.C., is now facing up to 20 years in prison after he was arrested for fraudulently obtaining more than $1.5 million from the Paycheck Protection Program, which he then splurged on personal expenses, including 39 cars.
A release from the Department of Justice said Brooks, 45, was arrested earlier this month by federal authorities who also seized some $2.2 million he deposited in various bank accounts as well as a 2018 Tesla Model 3.
He’s also accused of purchasing other luxury vehicles, including a 2017 Mercedes-Benz S Class, two 2017 Infinity Q50s, a 2015 Cadillac Escalade, a 2005 Bentley Continental, a 2014 GMC Yukon XL, and several older model luxury vehicles.
Eighteen months for a $3.5 million scam?
Spokane Resident Sentenced for Fraudulently Obtaining More than $360,000 in COVID- 19 Relief Funding
Details: https://t.co/MOAHLGlnRR@VetAffairsOIG @FBISeattle @SBAOIG @IRS_CI pic.twitter.com/STaZIiapTy— U.S. Attorney EDWA (@USAO_EDWA) August 28, 2024