A former Miami-Dade Corrections and Rehabilitation sergeant has been sentenced to one and a half years in prison for submitting hundreds of thousands of dollars in false loan applications for COVID-19 relief funds that were meant for struggling businesses during the pandemic.
The defendant, Arashio Harris, 49, pleaded guilty to wire fraud in August. He was ordered by U.S. District Judge Cecilia Altonaga to pay back over $432,000 to the U.S. government. Harris admitted that he unlawfully applied for two Paycheck Protection Program loans and two Economic Injury Disaster Loans to enrich himself, as stated in court records.
Harris, a former sergeant, is among several South Florida corrections and police officers who have been charged with exploiting the pandemic-relief loan programs since their adoption in 2020.
In the most recent case, 17 Broward Sheriff’s Office deputies and jail guards were accused of fraudulently obtaining approximately $500,000 in COVID-19 relief loans through fake business applications.
The Paycheck Protection Program, which was established by Congress to support struggling businesses and stimulate the economy during the pandemic, provided around $800 billion in loans through banks. The loans were guaranteed by the Small Business Administration and were generally forgivable if used for legitimate purposes, such as payroll and overhead costs. The Economic Injury Disaster Loan program was also activated to help businesses during the pandemic.
However, Harris and an associate took advantage of these programs by submitting applications on behalf of their companies, Good Family Property Solutions Inc. and Flying Lions LLC, based in Nevada. According to a factual statement filed with Harris’ plea agreement, the applications were fraudulent in nature.
Series of loans
In 2020, Harris claimed that Good Family Property Solutions had a pre-pandemic income of $130,000 and nine employees, which allowed the company to receive a non-refundable $9,000 advance and a $14,500 Economic Injury Disaster Loan. Later on, Harris submitted another false application, this time claiming that Flying Lions had earned $480,000 and had ten employees before the pandemic. As a result, the company received a $150,000 Economic Injury Disaster Loan.
Subsequently, Harris expanded his scheme to include PPP loans. He falsely stated that Good Family Property Solutions had ten employees and a monthly payroll of nearly $52,000. Harris submitted fabricated paperwork showing that the company had earned over $1 million and paid over $768,000 in wages, along with counterfeit tax forms. He successfully obtained more than $129,000 in a PPP loan from an approved lender in both 2020 and 2021, using the same fake documents.
While specific details of this case were not provided, prosecutors explained that fraudsters exploiting the pandemic relief programs were often able to obtain quick approvals due to the urgency in distributing funds. However, inconsistencies between fraudulent loan applications and actual corporate records, employee payrolls, and tax returns, as well as suspicious bank activity, raised red flags and led to further investigation by financial institutions and law enforcement agencies.
South Florida a hotbed of cases
South Florida, notorious for fraud schemes, has seen more than 150 PPP criminal cases involving approximately 200 defendants over the past three years, according to the U.S. Attorney’s Office. In July, a former detention guard for Immigration and Customs Enforcement, Anthony Faustin, was charged with submitting falsified loan applications for six fake businesses and obtaining over $100,000. In September, Faustin pleaded guilty to conspiracy to commit wire fraud and identity theft. In June, former Miami-Dade police officer Samuel Harris pleaded guilty to wire fraud for obtaining more than $275,000 in pandemic relief loans by reviving a defunct company. He is awaiting sentencing in November.
