According to the indictment, they are part of a scheme to defraud lenders and the Small Business Administration's Paycheck Protection Program (PPP). Said to be led by Michael Hill, he allegedly recruited others to use an existing business or create a business to submit applications to obtain PPP funding. Once enlisted, one of the co-conspirators, Andrew Charles Moran helped them with the application of paperwork, including fabricating supporting documentation, and submitting said application via online portals. On said applications, the defendants are alleged to have misrepresented material information such as the true nature of their business and the like.
Once they obtain said funding, instead of using it for its intended use, they will use it to typically pay Hill and Moran, and transferred money to their personal accounts, and spend said funds on various personal purchases or other activities such as purported investment in foreign exchange markets. In total, the defendants have alleged to have fraudulently obtained at least 16 loans and at least US$ 3.5 million. If convicted, the defendants each face up to 20 years in federal prison.