#certified financial planner in Austin

[hamiltonfinancialplanning]

Finding the Right Certified Financial Planner in Austin, Texas

Looking for a certified financial planner in Austin, Texas? At Hamilton Financial Planning, our expert advisors provide personalized, client-focused financial strategies. With a commitment to transparency and your best interests, we help you navigate investments, retirement planning, and more. Trust us to secure your financial future in Austin.

[davidgoodnight]

David Goodnight: Trusted Financial Advisor in Austin

In the vibrant city of Austin, Texas, David Goodnight has established himself as a trusted and respected financial advisor. With a career spanning over two decades, David has helped countless individuals and businesses navigate the complexities of financial planning, investment management, and wealth preservation. His deep understanding of financial markets, combined with his commitment to personalized service, has made him a sought-after advisor in the Austin area.

Early Career and Educational Background

David Goodnight's journey into the financial advisory field began with a strong educational foundation. He earned a degree in Finance from the University of Texas at Austin, where he developed a keen interest in financial markets and investment strategies. After graduation, David began his career at a prominent financial services firm, where he honed his skills in portfolio management, financial analysis, and client relations.

David's dedication to continuous learning and professional development has been a key driver of his success. He holds several prestigious certifications, including Certified Financial Planner (CFP) and Chartered Financial Analyst (CFA), reflecting his commitment to maintaining the highest standards of professional competence and ethical practice.

Comprehensive Financial Planning

As a financial advisor, David Goodnight austin specializes in providing comprehensive financial planning services tailored to the unique needs and goals of each client. His holistic approach ensures that all aspects of a client's financial situation are considered, including retirement planning, tax strategies, estate planning, and risk management. David's goal is to help clients achieve financial security and peace of mind through a well-structured and customized financial plan.

Investment Management

Investment management is a core component of David Goodnight's services. He employs a disciplined and research-driven approach to portfolio construction, focusing on diversification, risk management, and long-term growth. David takes the time to understand each client's risk tolerance, investment objectives, and time horizon, creating personalized investment strategies that align with their financial goals.

David's expertise in market analysis and asset allocation allows him to navigate the complexities of financial markets and identify opportunities for growth. He stays abreast of market trends and economic developments, ensuring that his clients' portfolios are positioned to capitalize on changing market conditions.

Retirement Planning

One of the most critical aspects of financial planning is preparing for retirement. David Goodnight helps clients develop and implement strategies to ensure a comfortable and secure retirement. He provides guidance on retirement savings, Social Security optimization, pension plans, and income distribution strategies. By creating a comprehensive retirement plan, David helps clients achieve their retirement goals and enjoy their golden years with confidence.

Estate Planning and Wealth Preservation

David Goodnight understands the importance of preserving and transferring wealth to future generations. He works closely with clients to develop effective estate planning strategies that minimize taxes and ensure a smooth transition of assets. David collaborates with estate planning attorneys and tax professionals to create comprehensive plans that address the unique needs of each client.

Wealth preservation is another key focus of David's practice. He provides advice on asset protection, charitable giving, and risk management, helping clients safeguard their wealth against potential threats and uncertainties.

Business Financial Planning

In addition to serving individual clients, David Goodnight offers financial planning services for businesses. He assists business owners with succession planning, employee benefits, retirement plans, and cash flow management. David's expertise helps businesses achieve financial stability and growth, enabling them to thrive in a competitive market.

Client-Centric Approach

At the heart of David Goodnight's practice is a client-centric philosophy. He believes that building strong, long-term relationships with clients is essential to providing effective financial advice. David takes the time to understand each client's unique circumstances, goals, and values, offering personalized solutions that reflect their individual needs.

David's commitment to transparency, integrity, and ethical practice has earned him the trust and loyalty of his clients. He provides clear and honest communication, ensuring that clients are informed and confident in their financial decisions. David's proactive approach to client service includes regular reviews and updates to financial plans, ensuring that they remain aligned with changing life circumstances and market conditions.

Community Involvement and Philanthropy

Beyond his professional achievements, David Goodnight is deeply committed to giving back to the Austin community. He supports various charitable organizations and community initiatives, focusing on education, financial literacy, and youth development. Through his philanthropic efforts, David aims to make a positive impact on the lives of individuals and families in Austin.

David's involvement in community service reflects his belief that financial advisors have a responsibility to contribute to the well-being of the communities they serve. His leadership and generosity have earned him recognition and respect from peers and community members alike.

Looking Ahead

As the financial landscape continues to evolve, David Goodnight remains at the forefront, continuously adapting to changing market conditions and client needs. His forward-thinking approach, combined with his deep industry knowledge and commitment to excellence, ensures that he will continue to be a trusted and influential figure in the financial advisory sector.

In conclusion, David Goodnight texas contributions as a financial advisor in Austin are significant and far-reaching. His expertise, innovative strategies, and client-centric philosophy have set new standards for financial advisory services. As he continues to lead and inspire, David's legacy will undoubtedly leave a lasting impact on the industry and the clients he serves. Visit Us: https://www.goodnightgroup.com/ https://www.crunchbase.com/person/david-goodnight-austin-tx

[financialplanneraustin]

What Is a Fiduciary Financial Advisor?

A Fiduciary Financial Advisor is someone who has the responsibility to act in the best interests of their clients at all times. Fiduciaries are obligated by law to serve their client's needs with loyalty and honesty, without any conflicting interest. Fiduciaries must always act in accordance with this fiduciary duty or face legal consequences. It's important that you know what a Fiduciary Financial Advisor is before working with one so you can make an informed decision about your financial future!

Here's what you should know about fiduciary financial advisors:

What is a fiduciary?

Examples of fiduciary-client relationships.

Is there a difference between a fiduciary and a financial advisor?

The fiduciary duty is the highest standard of care.

Fiduciary standard vs. suitability standard.

What is a fiduciary?

Fiduciary is someone who has the responsibility to act in the best interests of their clients at all times. The most common example of a fiduciary is a trustee of a trust, but Fiduciaries can be attorneys, accountants and other professionals. Corporate officers are fiduciaries for their shareholders, as are attorneys and real estate agents for their clients. Some, but not all, financial advisors are fiduciaries.

Examples of fiduciary-client relationships?

Fiduciaries include investment advisers, retirement plan sponsors and brokers. Fiduciary status cannot be assumed because it depends on how a firm structures its relationship with a client.

These are some common examples of fiduciary relationships:

Fiduciary financial advisor-client

Trustee-beneficiary

Corporate officer-shareholder

Attorney-client

Real estate agent-client

Is there a difference between a fiduciary and a financial advisor?

Fiduciaries are held to a higher standard of care than other service providers, such as brokers or insurance agents. Fiduciary duty is the highest legal obligation an individual can have, requiring them to always act in their client's best interests. A financial advisor is a job description, which can include fiduciary and nonfiduciary advisors. A fiduciary is any professional who is upheld to a fiduciary standard – meaning the person must act in your best interest – and can include financial advisors, attorneys, guardians and other professionals.

The fiduciary duty is the highest standard of care.

Fiduciaries are required to act as "prudent experts" on behalf of their clients, while brokers only need show that the investments they sell have met certain minimum requirements under industry rules - known as suitability standards

Fiduciary standard vs. suitability standard.

Fiduciary standard requires Fiduciaries to avoid conflicts that could result in harm or exploitation of clients. Suitability Standard allows Firms and Fiduciaries more leeway in their investment choices because it only require them to show that investments are suitable for a client, without regard to other factors such as cost and complexity.

When it comes to Fiduciary Financial Advisor in Austin, DESMO Wealth Advisors, LLC stands out with their work ethics and a previous history of client satisfaction. Book a consultation today to protect your investment in the best way possible.

[desmowealthadvisors]

Financial Advisor Austin TX

Take Your Time to Choose your Financial Expert

Virtually each people, functioning as an expert or in a business calls for cash in order to sustain our life. If we can discover leads to grow our cash after that we can always make our future safe. However, we all require to take support from a financial professional, that can aid us excellent guidance on financial matters, and also can assist us increase our riches. People that are concentrated on this field knows numerous difficult as well as complex federal policies and also norms and also can help us to take the best choice with our cash, to make sure that it is safe and secure as well as safe for our future demands and demands. If you are looking forward taking support from any type of financial advisor Austin TX then you will certainly come to know that you are on the proper track as well as can lead your life carefree.

Essential actions to select the ideal specialist

The area of financial services is expanding with fantastic rate. There are a broad number of professional service providers available for specific as well as for organizations. Thus, you can have array of selections, as far as picking the professional monetary solutions in Austin TX for your cash worried money. If you are looking forward picking appropriate advisor to safeguard your cash after that you need to take complying with essential actions:

1-Search the listing of financial consultants on the web and also make your checklist. 2-Select those coordinators, who are professional in dealing with the bountiful quantity of cash that you have. 3-Meet each of the settled consultants personally and discuss your desires and requires. 4-You must likewise make sure concerning their session fees to manage your cash. 5-You has to not forget to verify their experience and expertise.

Necessary things to consider while selecting these solutions

Financial sector is a focused area, as well as while picking the best type of expert you need to examine different other functions of the solutions also.

In case, an expert handles your possessions and they are more than $30 million then it is important that he has actually educated in Protection and Exchange payment concerning his education, experience, organization history, knowledge, fees and also his techniques. In case, your spending plan is lower than $30 million then the coordinator needs to offer this details to state's protection agency. You must make certain that your planner has actually given all the details right and also specific to stay clear of any kind of eleventh hour inconvenience.

Given that most of these economic organizers do not need any sort of license to give these kinds of services. So, it is your duty to confirm all their qualifications. Experience is the primary as well as crucial requirements of your choice. Not only this, you have to additionally check their previous example job. If you look forward you can ask them to give their checklist of previous clients. Last, you must additionally strive to get evaluations from their clients or affiliates prior to hiring the solutions of any kind of expert.

To find out more visit this site.

[blogiqraworld]

Financial Planning for Baby Boomers and Retirees

CERTIFIED FINANCIAL PLANNER ™ in Austin and Houston Texas

We help Baby Boomers align their values, visions, and goals to create a comprehensive financial plan and investment Management.

[makinvestment]

This Week on TRB - The Reformed Broker

This Week on TRB – The Reformed Broker

I didn’t get to write a lot because I was traveling. Thanks to Ric Edelman for having me at the Digital Assets Certified Financial Planner event in Austin this week. It was great to catch up with some old friends and new from around the industry. And special thanks to Red Ash Italia for an incredible dinner.  It’s nice to be able to get back out on the road again. I’m still saying no to 90% of…

[unixcommerce]

30 PPP Fraud Prosecutions So Far, and Counting

Paycheck Protection Program (PPP) loans have aided more than 5 million small business owners, providing a much needed lifeline during the Coronavirus outbreak crisis. The overwhelming majority of business owners are legitimate and will use the money as intended to retain employees and stay operational.

But the PPP program has attracted a few rotten apples. And you won’t believe how rotten they are.

To date, the Justice Department has filed 30 PPP fraud cases. Defendants are charged with bilking taxpayers out of tens of millions of dollars. Luckily, the Feds have recovered a large part of the loan proceeds already.

And what’s been recovered tells a wild tale.

Feds have seized a 2020 Lamborghini Huracan sports car, a Rolex Presidential watch, a 5.73-carat diamond ring, and a diamond bracelet — all purchased with PPP loan money. Other loot includes a Tesla, a 26-foot Pavati Wake Boat, two Rolls-Royces, a Lamborghini Urus, and a Ford F-350 pickup truck.

Authorities also seized cash hoards, froze bank accounts, and recovered other assets.

Some defendants blew taxpayer money on wild spending sprees, including Las Vegas gambling, visits to strip clubs, and day-trading. In one case, a married couple was apprehended at JFK Airport purportedly attempting to flee the country after submitting 18 fraudulent applications.

Every government program attracts a small number of grifters and criminals. And the DOJ has made it a priority to root them out. On March 16, 2020, Attorney General William Barr directed all 94 U.S. Attorneys’ Offices to prioritize investigating and prosecuting PPP loan fraud cases.

PPP Loan Program Results

On March 27, 2020 Congress passed and President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act — or CARES Act. It authorized the Paycheck Protection Program. PPP is a low-interest, forgivable loan program designed to help small businesses and self-employed individuals.

In an unusual example of government speed, the Small Business Administration started accepting loan applications just a week later on April 3, 2020. Through July 24, the SBA has approved 5,005,261 loans, constituting $519,505,881,228, demonstrating its success.

The majority of the funds are going to help the nation’s 31 million small businesses, there’s no doubt about it. The number of fraud prosecutions is very small by comparison.

30 PPP Fraud Cases – So Far

Could these prosecutions involve nothing more than paperwork mistakes? They do not appear to be honest mistakes. All appear to involve egregious circumstances — assuming the government ultimately proves the facts. Some defendants actually were under indictment for other charges at the time of applying for loans. Others hid their criminal past.

Here’s a rundown of the 30 PPP loan fraud cases to date with some of the lurid details alleged:

Two Men, Identity Theft and a Conspiracy (Rhode Island – May 5)

David A. Staveley, aka Kurt D. Sanborn, and David Butziger were charged with conspiring to seek over $530,000 in PPP money. It’s alleged they falsely claimed to have dozens of employees at 4 different businesses, including a restaurant neither owned. They allegedly discussed their fraud in email and one assumed the identity of his own brother. Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office said in a statement, “Thankfully we were able to stop them before taxpayers were defrauded.”

Texas Engineer (Texas – May 13)

Shashank Rai, an engineer from Beaumont, is charged with multiple counts of fraud and false statements to the SBA for seeking more than $10 million in PPP funds. He allegedly claimed to have 250 employees when there is no record of any in his business, Rai Family LLC. Court documents allege that handwritten notes recovered from his trash describe how he planned to use $3 million of the money for personal investments.

Reality TV Personality (Georgia – May 13)

“Love & Hip Hop: Atlanta” star Maurice Fayne was indicted on fraud charges over a $3,725,500 PPP loan application for his company, Flame Trucking. Fayne allegedly claimed he had 107 employees and submitted forged bank statements. It’s alleged he then blew the money on a Rolex Presidential watch, a 5.73 carat diamond ring and other jewelry. He also allegedly used the money to pay $50,000 for restitution in a previous fraud case, $40,000 in back child support, $139,000 to lease a Rolls Royce Wraith — and $230,000 to associates who helped him run a Ponzi scheme. When arrested, he had almost $80,000 in cash at his home and $9,400 in his pocket, authorities claim.

East Texas Man and the Online Name Generator (Texas – May 19)

Samuel Yates of Maud, Texas is charged with fraudulently applying for $5 million with two different lenders. He claimed to have 400 employees, but actually had zero. The complaint claims Yates used a name generator on the Internet to create names of fake employees. He also allegedly submitted forged tax documents.

Manhattan Businessman (New York – May 21)

Muge Ma, a/k/a “Hummer Mars,” a Chinese national residing in Manhattan, was arrested on charges of trying to obtain over $20 million in PPP and EIDL money. Ma is alleged to have falsely represented to the SBA and five financial institutions that his companies had hundreds of employees when he was the only employee. He also allegedly was involved in a scheme claiming to represent the New York State Government in procuring COVID-19 test kits.

Hollywood Film Producer (California – May 22)

William Sadleir, the ousted head of Aviron Pictures, was charged with wire and bank fraud in connection with a $1.7 million PPP loan. He allegedly used some of the money to pay off $80,000 in personal credit cards and a $40,000 car loan. Sadleir was Executive Producer on films like Serenity, starring Matthew McConaughey. In an unrelated matter the SEC charged Sadleir with allegedly defrauding investors of $13.8 million through Aviron.

Lyft Software Engineer (Washington – May 22)

Baoke Zhang, a software engineer at ride share company Lyft, is charged with wire and bank fraud. He allegedly created fake technology companies to obtain $1.5 million in funds. U.S. Attorney Brian T. Moran said in a statement, “I am pleased that the systems designed to detect and deny fraudulent payments caught his scheme before federal funds went out the door.”

Man on Parole (Virginia – May 29)

Joseph Cherry II of Virginia was indicted on 10 counts of COVID fraud and faces 10 to 30 years of prison time on each count. Cherry was on supervised release in an unrelated federal case when he applied to the SBA program. It is alleged he got over $190,000 in proceeds and managed to withdraw cash or cashier’s checks for $140,000. “Providing false statements to gain access to SBA’s programs will be aggressively investigated by our office,” said Hannibal Ware, Inspector General of the U.S. Small Business Administration, in a statement.

Walmart Project Manager (Oklahoma – June 4)

Benjamin Hayford is charged with fraud for seeking about $4.4 million in PPP financing. He allegedly certified that his business was operating as of February 15, 2020 (a requirement of the law) and had 247 employees. Prosecutors say a search of his email account showed he didn’t even set up a company until a few days before applying in April. At the time of his arrest Hayford was a Project Manager for Walmart. The retail giant suspended him and stated the charges were unrelated to Walmart.

Auto Repair Shop Owner (California – June 5)

Geoffrey M. Palermo of Novato faces charges of wire fraud and making false statements. The former manager of the San Francisco Hilton allegedly embezzled from the hotel in a kickback scheme going back to 2013. After leaving the hotel he opened GMP Cars, an auto repair shop. In April he allegedly obtained a PPP loan of $1.7 million by falsely certifying that GMP Cars had employees for whom it paid salaries and payroll taxes. In fact, according to the criminal complaint, Palermo used company funds for lavish personal expenses including a Ferrari racing car, leaving the business in financial distress.

IT Company Business Owner (Illinois – June 16)

Rahul Shah of Evanston is charged with bank fraud and making false statements to a financial institution. He allegedly applied for $441,000 under the Federal Paycheck Protection program for several companies. The allegations say he submitted fake IRS documentation. Several individuals he allegedly submitted payroll documentation for said they never worked for his company, per investigators.

Austin High Roller (Texas – June 18)

Michael George McQuarn, 51, of Austin, is charged with with fraudulently receiving over $2 million in SBA loans for two fictitious companies, Vantastic Voyages, LLC and Happy Days Movers, LLC. McQuarn allegedly used the money for personal purposes including buying a 26-foot Pavati Wake Boat and a Rolls Royce.

IT Services Company Owner (Massachusetts – June 22)

Elijah Majak Buoi, president of Sosuda Tech LLC, is charged with fraudulently applying for over $13 million in PPP aid. Buoi allegedly misrepresented how many employees he had and that the United States was their primary residence (required). He ultimately received over $2 million but the government seized $1.98 million from business bank accounts.

Wedding Planner (Texas – June 23)

This owner of a wedding planning company is charged with submitting two PPP applications, and claiming to have 120 employees when he actually had none. Fahad Shah got $1.5 million in funds. He allegedly used the money to buy a Tesla car, make personal investments and make his home mortgage payments.

Married Couple Attempting to Flee (Virginia – June 24)

The FBI apprehended Monica Jaworska and her husband Tarik Jaafar at JFK Airport allegedly attempting to flee to Poland. The paid are charged with submitting 18 fraudulent Paycheck Protection applications with false payroll tax returns, and receiving $1.4 million in funds. The Feds managed to freeze most of the funds but not before the couple allegedly withdrew $30,000 in cash.

Funeral Director (Texas – June 24)

Jase DePaul Gautreaux aka Jase Dixon, a funeral director in Houston, is charged with seeking $13 million in funds and ultimately receiving over $1.6 million. The criminal complaint charges him with false statements to a financial institution, bank fraud and engaging in unlawful monetary transactions. He allegedly submitted applications on behalf of a business that did not exist and for businesses he did not own.

Owner of Private Investigation Firm (Ohio – June 24)

Nadine Consuelo Jackson is charged with bank fraud and other charges for seeking forgivable loans in the amount of $1.3 million, $1.2 million and another $46,000 in Economic Injury Disaster funding. She allegedly claimed to have 73 employees at her Dayton private investigation business. Three people she allegedly claimed as employees told investigators they never heard of her company. The bank recalled one loan and the Government seized funds for the other two.

Ophthalmologist Already Under Indictment (New York – June 24)

Apparently one fraud isn’t enough for some people. Meet Goyal, MD, an ophthalmologist in Rye, New York, was under indictment for healthcare fraud. That didn’t stop him from allegedly applying for two PPP loans using different business names. He also allegedly lied certifying he had no pending indictments. Acting U.S. Attorney Audrey Strauss said, “Goyal allegedly looted over $630,000 in federal funds earmarked for legitimate small businesses in dire financial straits.”

Seattle Doctor (Washington – June 30)

Dr. Eric R. Shibley is charged with one count of wire fraud and one count of bank fraud. The complaint alleges he applied several times to get aid totaling $3 million, in the names of businesses with no actual operations. He allegedly lied about his criminal past, and submitted fake tax documents including names of people who did not work for the businesses.

Man Under Indictment (Wisconsin – July 8)

Ahmad Kanan, formerly of Madison, is charged with wire fraud and money laundering. He allegedly applied for two loans totaling $119,560 acting as owner of Altin Labs, Inc. The indictment alleges Kanan was under federal indictment on an unrelated matter at the time. He then allegedly transferred $47,000 to his personal checking account.

Trucking Company Owner (Utah – July 8)

Hubert Ivan Ugarte of Draper, with the assistance of Lisa Bradshaw Rowberry of Provo are charged with fraudulently obtaining a PPP loan of $210,000. He allegedly lied about not being under criminal charges — he in fact was under indictment for a bribery scheme. After two banks declined, Rowberry allegedly said she would help him re-apply through a friend. Ultimately Ugarte received funds from Transportation Alliance Bank. Ugarte allegedly used funds for past due truck payments to Kenworth instead of required payroll.

Medical Company Owner (Florida – July 10)

Carlos Belone is charged with wire fraud and other charges in connection with several fraudulent PPP applications. He allegedly got $22,000 which he then deposited partially into a personal account and partially gave to another company in furtherance of a $5.6 million Medicare kickback scheme.

Construction Company Owner (Washington D.C. – July 13)

Oludamilare Olugbuyi is charged with fraudulently obtaining two PPP loans totaling more than $400,000. Allegedly he submitted fake IRS 1099 Forms containing worker social security numbers that were invalid. The complaint claims he submitted a tax return reporting $175,565 income for tax year 2019. However, on April 14, 2020, Olugbuyi allegedly filed a 1040 “non-filer return” reporting $1 in income for 2019 which qualified him to receive a $1,200 economic impact payment.

The Cryptocurrency Investor (Texas – July 14)

Joshua Thomas Argires of Houston was arrested on various fraud charges. Argires allegedly filed two fraudulent applications seeking $1.1 million in forgivable funding. One was on behalf of a company called Texas Barbecue and the other called Houston Landscaping. Argires allegedly invested some of the proceeds in a cryptocurrency account and withdrew other funds via ATM transactions.

The Vegas High Roller (California – July 16)

It’s easy to take risks on day trading and gambling when you’re using taxpayer money. Andrew Marnell of Los Angeles is charged with bank fraud. He allegedly used aliases to obtain $8.5 million in aid using fake tax filings and falsified records of payroll costs. He allegedly blew through about $200,000 in Las Vegas casinos, where he was caught on surveillance cameras at a Bellagio blackjack table. Authorities also claim he lost $500,000 on risky stock market trades. Wells Fargo previously fired him for embezzlement, according to news reports.

Handmade Entrepreneur (Arkansas – July 16)

Ganell Tubbs, the entrepreneur owner of Little Piglet Soap Company and Suga Girl Customs, an Etsy shop, is charged with fraudulently obtaining nearly $2 million in PPP loans. Days later she paid $8,000 on her student loan and then went on a spending spree at Sephora and other retailers, it is alleged.

Ex-Microsoft Executive (Washington – July 23)

Mohan Mukand, who used to work for Microsoft and Amazon according to his LinkedIn profile, is charged with submitting 8 PPP applications on behalf of six companies. According to the U.S. Attorneys office, the companies didn’t exist or didn’t have the employees he claimed. Authorities allege he bought a company on the Internet in May with no employees, and then forged documents to claim he had paid millions in payroll taxes in 2019. He allegedly transferred a quarter million dollars of proceeds to his personal brokerage account.

High-Living Florida Man (Florida – July 27)

David T. Hines of Miami is charged with fraudulently seeking $13.5 million in PPP money using false statements about various companies’ payroll expenses. He was approved for $3.9 million. Days later he allegedly bought a 2020 Lamborghini Huracan sports car for $318,000. He also allegedly squandered money at luxury retailers and Miami resorts.

Miami Chiropractor (Florida – July 29)

Dennis Nobbe, a chiropractor in Miami, is charged with wire fraud, health care fraud, money laundering and conspiracy. He allegedly obtained $200,000 in Paycheck Protection Program and Economic Injury Disaster funds and used the money for personal expenses. Allegations also claim he perpetrated a credit card scam on low-income patients. He allegedly got patients to open credit cards to pay for out-of-pocket medical expenses for services he did not fully render.

Houston Partier (Texas – August 4)

Lee Price III is charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. He allegedly received over $1.6 million. He then went on a luxury buying blitz acquiring a Lamborghini Urus, a Rolex watch, a 2020 Ford F-350 pickup truck, and real estate — according to allegations. He allegedly squandered thousands at strip clubs and nightclubs.

The DOJ and U.S. Attorneys are using a variety of charges for enforcement, including wire fraud (18 U.S.C. § 1343) and making false statements to the SBA and FDIC-insured banks (18 U.S.C. § 1014). Depending on the charges, penalties could include up to $1 million in fines and up to 30 years in prison, legal experts say.

But of course, the government has to prove the allegations. Justice Department lawyers remind everyone that, “A criminal complaint is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ”

More Prosecutions on the Horizon

PPP money is still available and the current deadline for applying is August 8, 2020 (unless extended). A total of roughly $649 billion has been authorized by Congress, leaving $130 billion still available for small businesses as of July 24th.

Have we seen the last of PPP fraud prosecutions? No. New ones are being announced weekly. But it’s important to remember that 30 frauds out of 5 million loans is a minuscule number. The overwhelming majority of loans have no allegations of fraud surrounding them.

Still, a June report by the Government Accountability Office found, “there is a significant risk that some fraudulent or inflated applications were approved.” Treasury Secretary Steven Mnuchin announced that the Treasury Department would review every PPP loan over $2 million. However, the GAO recommended oversight of the more than 4 million smaller loans, also.

The government watchdog also pressed for safeguards and oversight plans to avoid double dipping. There’s a recommendation to audit COVID-19 unemployment benefits paid to workers rehired by employers using PPP loan funds.

Yet to Come: The PPP Forgiveness Process

Another wrinkle is the loan forgiveness process. Millions of small businesses eventually will apply for forgiveness. That’s bound to trigger another round of scrutiny.

In order to get Paycheck Protection loans forgiven and not have to repay the money, small business owners have to show proof that at least 60% of the money was used for payroll and the rest for other permitted expenses. A requirement of forgiveness is that borrowers must rehire or retain workers — and maintain salary levels.

The DOJ has signaled it may also pursue civil penalties not just criminal prosecutions, particularly around loan forgiveness. Principal Deputy Assistant Attorney General Ethan P. Davis noted in a June 26th speech: “When the borrower is ready to seek forgiveness of the loan, it has to certify that the funds were in fact used to pay costs that are eligible for forgiveness. If an applicant knowingly answers any of these questions falsely, it may face False Claims Act liability.”

This means you have to be just as scrupulous when applying for forgiveness as when you applied for the money initially. The False Claims Act can impose steep financial penalties, including treble damages.

If the PPP debt is not forgiven, the interest rate is very low — 1%. Businesses that have to repay the money get 2 years to repay if funding was issued before June 5. If you got funding after June 5, you have five years to repay. The PPP promissory note you signed will have the terms applicable to you. See the SBA website for updated forgiveness information.

Should Business Owners Be Worried?

It’s a scary thing for legitimate business owners to sign borrower certifications under potential penalties of fines and prison time. The SBA programs have complex rules. It could be easy to trip up innocently.

This has caused some entrepreneurs and business owners to think twice about applying. No one under pressure of this pandemic wants to fumble on a technicality while legitimately trying to pay employees and keep their life’s work afloat. One local businesswoman told me she prayed for two weeks before applying because of her fears over confusing requirements.

Representatives of the Department of Justice say honest owners acting in good faith shouldn’t worry. Stephen J. Cox, the U.S. Attorney for the Eastern District of Texas, wrote in an op-ed in Texas Lawyer:

“Rest assured that we will be careful not to discourage legitimate businesses from accessing the important financial resources that Congress made available through the CARES Act. We will not punish companies that accessed stimulus funds in good faith compliance with the rules. Nor, will we seek out applicants who made technical mistakes in processing paperwork or honestly misunderstood regulatory or certification requirements. Our focus is on fraud.”

Let’s hope the entire government is on the same page as Mr. Cox.

This article is not intended as legal advice. It’s intended to offer news and peer perspective on an important issue that affects us as business owners. Stay informed and check with your attorney and/or accountant with questions.

Case data source and image source: Justice.gov

This article, “30 PPP Fraud Prosecutions So Far, and Counting” was first published on Small Business Trends

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The post 30 PPP Fraud Prosecutions So Far, and Counting appeared first on Unix Commerce.

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30 PPP Fraud Prosecutions So Far, and Counting

Paycheck Protection Program (PPP) loans have aided more than 5 million small business owners, providing a much needed lifeline during the Coronavirus outbreak crisis. The overwhelming majority of business owners are legitimate and will use the money as intended to retain employees and stay operational.

But the PPP program has attracted a few rotten apples. And you won’t believe how rotten they are.

To date, the Justice Department has filed 30 PPP fraud cases. Defendants are charged with bilking taxpayers out of tens of millions of dollars. Luckily, the Feds have recovered a large part of the loan proceeds already.

And what’s been recovered tells a wild tale.

Feds have seized a 2020 Lamborghini Huracan sports car, a Rolex Presidential watch, a 5.73-carat diamond ring, and a diamond bracelet — all purchased with PPP loan money. Other loot includes a Tesla, a 26-foot Pavati Wake Boat, two Rolls-Royces, a Lamborghini Urus, and a Ford F-350 pickup truck.

Authorities also seized cash hoards, froze bank accounts, and recovered other assets.

Some defendants blew taxpayer money on wild spending sprees, including Las Vegas gambling, visits to strip clubs, and day-trading. In one case, a married couple was apprehended at JFK Airport purportedly attempting to flee the country after submitting 18 fraudulent applications.

Every government program attracts a small number of grifters and criminals. And the DOJ has made it a priority to root them out. On March 16, 2020, Attorney General William Barr directed all 94 U.S. Attorneys’ Offices to prioritize investigating and prosecuting PPP loan fraud cases.

PPP Loan Program Results

On March 27, 2020 Congress passed and President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act — or CARES Act. It authorized the Paycheck Protection Program. PPP is a low-interest, forgivable loan program designed to help small businesses and self-employed individuals.

In an unusual example of government speed, the Small Business Administration started accepting loan applications just a week later on April 3, 2020. Through July 24, the SBA has approved 5,005,261 loans, constituting $519,505,881,228, demonstrating its success.

The majority of the funds are going to help the nation’s 31 million small businesses, there’s no doubt about it. The number of fraud prosecutions is very small by comparison.

30 PPP Fraud Cases – So Far

Could these prosecutions involve nothing more than paperwork mistakes? They do not appear to be honest mistakes. All appear to involve egregious circumstances — assuming the government ultimately proves the facts. Some defendants actually were under indictment for other charges at the time of applying for loans. Others hid their criminal past.

Here’s a rundown of the 30 PPP loan fraud cases to date with some of the lurid details alleged:

Two Men, Identity Theft and a Conspiracy (Rhode Island – May 5)

David A. Staveley, aka Kurt D. Sanborn, and David Butziger were charged with conspiring to seek over $530,000 in PPP money. It’s alleged they falsely claimed to have dozens of employees at 4 different businesses, including a restaurant neither owned. They allegedly discussed their fraud in email and one assumed the identity of his own brother. Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office said in a statement, “Thankfully we were able to stop them before taxpayers were defrauded.”

Texas Engineer (Texas – May 13)

Shashank Rai, an engineer from Beaumont, is charged with multiple counts of fraud and false statements to the SBA for seeking more than $10 million in PPP funds. He allegedly claimed to have 250 employees when there is no record of any in his business, Rai Family LLC. Court documents allege that handwritten notes recovered from his trash describe how he planned to use $3 million of the money for personal investments.

Reality TV Personality (Georgia – May 13)

“Love & Hip Hop: Atlanta” star Maurice Fayne was indicted on fraud charges over a $3,725,500 PPP loan application for his company, Flame Trucking. Fayne allegedly claimed he had 107 employees and submitted forged bank statements. It’s alleged he then blew the money on a Rolex Presidential watch, a 5.73 carat diamond ring and other jewelry. He also allegedly used the money to pay $50,000 for restitution in a previous fraud case, $40,000 in back child support, $139,000 to lease a Rolls Royce Wraith — and $230,000 to associates who helped him run a Ponzi scheme. When arrested, he had almost $80,000 in cash at his home and $9,400 in his pocket, authorities claim.

East Texas Man and the Online Name Generator (Texas – May 19)

Samuel Yates of Maud, Texas is charged with fraudulently applying for $5 million with two different lenders. He claimed to have 400 employees, but actually had zero. The complaint claims Yates used a name generator on the Internet to create names of fake employees. He also allegedly submitted forged tax documents.

Manhattan Businessman (New York – May 21)

Muge Ma, a/k/a “Hummer Mars,” a Chinese national residing in Manhattan, was arrested on charges of trying to obtain over $20 million in PPP and EIDL money. Ma is alleged to have falsely represented to the SBA and five financial institutions that his companies had hundreds of employees when he was the only employee. He also allegedly was involved in a scheme claiming to represent the New York State Government in procuring COVID-19 test kits.

Hollywood Film Producer (California – May 22)

William Sadleir, the ousted head of Aviron Pictures, was charged with wire and bank fraud in connection with a $1.7 million PPP loan. He allegedly used some of the money to pay off $80,000 in personal credit cards and a $40,000 car loan. Sadleir was Executive Producer on films like Serenity, starring Matthew McConaughey. In an unrelated matter the SEC charged Sadleir with allegedly defrauding investors of $13.8 million through Aviron.

Lyft Software Engineer (Washington – May 22)

Baoke Zhang, a software engineer at ride share company Lyft, is charged with wire and bank fraud. He allegedly created fake technology companies to obtain $1.5 million in funds. U.S. Attorney Brian T. Moran said in a statement, “I am pleased that the systems designed to detect and deny fraudulent payments caught his scheme before federal funds went out the door.”

Man on Parole (Virginia – May 29)

Joseph Cherry II of Virginia was indicted on 10 counts of COVID fraud and faces 10 to 30 years of prison time on each count. Cherry was on supervised release in an unrelated federal case when he applied to the SBA program. It is alleged he got over $190,000 in proceeds and managed to withdraw cash or cashier’s checks for $140,000. “Providing false statements to gain access to SBA’s programs will be aggressively investigated by our office,” said Hannibal Ware, Inspector General of the U.S. Small Business Administration, in a statement.

Walmart Project Manager (Oklahoma – June 4)

Benjamin Hayford is charged with fraud for seeking about $4.4 million in PPP financing. He allegedly certified that his business was operating as of February 15, 2020 (a requirement of the law) and had 247 employees. Prosecutors say a search of his email account showed he didn’t even set up a company until a few days before applying in April. At the time of his arrest Hayford was a Project Manager for Walmart. The retail giant suspended him and stated the charges were unrelated to Walmart.

Auto Repair Shop Owner (California – June 5)

Geoffrey M. Palermo of Novato faces charges of wire fraud and making false statements. The former manager of the San Francisco Hilton allegedly embezzled from the hotel in a kickback scheme going back to 2013. After leaving the hotel he opened GMP Cars, an auto repair shop. In April he allegedly obtained a PPP loan of $1.7 million by falsely certifying that GMP Cars had employees for whom it paid salaries and payroll taxes. In fact, according to the criminal complaint, Palermo used company funds for lavish personal expenses including a Ferrari racing car, leaving the business in financial distress.

IT Company Business Owner (Illinois – June 16)

Rahul Shah of Evanston is charged with bank fraud and making false statements to a financial institution. He allegedly applied for $441,000 under the Federal Paycheck Protection program for several companies. The allegations say he submitted fake IRS documentation. Several individuals he allegedly submitted payroll documentation for said they never worked for his company, per investigators.

Austin High Roller (Texas – June 18)

Michael George McQuarn, 51, of Austin, is charged with with fraudulently receiving over $2 million in SBA loans for two fictitious companies, Vantastic Voyages, LLC and Happy Days Movers, LLC. McQuarn allegedly used the money for personal purposes including buying a 26-foot Pavati Wake Boat and a Rolls Royce.

IT Services Company Owner (Massachusetts – June 22)

Elijah Majak Buoi, president of Sosuda Tech LLC, is charged with fraudulently applying for over $13 million in PPP aid. Buoi allegedly misrepresented how many employees he had and that the United States was their primary residence (required). He ultimately received over $2 million but the government seized $1.98 million from business bank accounts.

Wedding Planner (Texas – June 23)

This owner of a wedding planning company is charged with submitting two PPP applications, and claiming to have 120 employees when he actually had none. Fahad Shah got $1.5 million in funds. He allegedly used the money to buy a Tesla car, make personal investments and make his home mortgage payments.

Married Couple Attempting to Flee (Virginia – June 24)

The FBI apprehended Monica Jaworska and her husband Tarik Jaafar at JFK Airport allegedly attempting to flee to Poland. The paid are charged with submitting 18 fraudulent Paycheck Protection applications with false payroll tax returns, and receiving $1.4 million in funds. The Feds managed to freeze most of the funds but not before the couple allegedly withdrew $30,000 in cash.

Funeral Director (Texas – June 24)

Jase DePaul Gautreaux aka Jase Dixon, a funeral director in Houston, is charged with seeking $13 million in funds and ultimately receiving over $1.6 million. The criminal complaint charges him with false statements to a financial institution, bank fraud and engaging in unlawful monetary transactions. He allegedly submitted applications on behalf of a business that did not exist and for businesses he did not own.

Owner of Private Investigation Firm (Ohio – June 24)

Nadine Consuelo Jackson is charged with bank fraud and other charges for seeking forgivable loans in the amount of $1.3 million, $1.2 million and another $46,000 in Economic Injury Disaster funding. She allegedly claimed to have 73 employees at her Dayton private investigation business. Three people she allegedly claimed as employees told investigators they never heard of her company. The bank recalled one loan and the Government seized funds for the other two.

Ophthalmologist Already Under Indictment (New York – June 24)

Apparently one fraud isn’t enough for some people. Meet Goyal, MD, an ophthalmologist in Rye, New York, was under indictment for healthcare fraud. That didn’t stop him from allegedly applying for two PPP loans using different business names. He also allegedly lied certifying he had no pending indictments. Acting U.S. Attorney Audrey Strauss said, “Goyal allegedly looted over $630,000 in federal funds earmarked for legitimate small businesses in dire financial straits.”

Seattle Doctor (Washington – June 30)

Dr. Eric R. Shibley is charged with one count of wire fraud and one count of bank fraud. The complaint alleges he applied several times to get aid totaling $3 million, in the names of businesses with no actual operations. He allegedly lied about his criminal past, and submitted fake tax documents including names of people who did not work for the businesses.

Man Under Indictment (Wisconsin – July 8)

Ahmad Kanan, formerly of Madison, is charged with wire fraud and money laundering. He allegedly applied for two loans totaling $119,560 acting as owner of Altin Labs, Inc. The indictment alleges Kanan was under federal indictment on an unrelated matter at the time. He then allegedly transferred $47,000 to his personal checking account.

Trucking Company Owner (Utah – July 8)

Hubert Ivan Ugarte of Draper, with the assistance of Lisa Bradshaw Rowberry of Provo are charged with fraudulently obtaining a PPP loan of $210,000. He allegedly lied about not being under criminal charges — he in fact was under indictment for a bribery scheme. After two banks declined, Rowberry allegedly said she would help him re-apply through a friend. Ultimately Ugarte received funds from Transportation Alliance Bank. Ugarte allegedly used funds for past due truck payments to Kenworth instead of required payroll.

Medical Company Owner (Florida – July 10)

Carlos Belone is charged with wire fraud and other charges in connection with several fraudulent PPP applications. He allegedly got $22,000 which he then deposited partially into a personal account and partially gave to another company in furtherance of a $5.6 million Medicare kickback scheme.

Construction Company Owner (Washington D.C. – July 13)

Oludamilare Olugbuyi is charged with fraudulently obtaining two PPP loans totaling more than $400,000. Allegedly he submitted fake IRS 1099 Forms containing worker social security numbers that were invalid. The complaint claims he submitted a tax return reporting $175,565 income for tax year 2019. However, on April 14, 2020, Olugbuyi allegedly filed a 1040 “non-filer return” reporting $1 in income for 2019 which qualified him to receive a $1,200 economic impact payment.

The Cryptocurrency Investor (Texas – July 14)

Joshua Thomas Argires of Houston was arrested on various fraud charges. Argires allegedly filed two fraudulent applications seeking $1.1 million in forgivable funding. One was on behalf of a company called Texas Barbecue and the other called Houston Landscaping. Argires allegedly invested some of the proceeds in a cryptocurrency account and withdrew other funds via ATM transactions.

The Vegas High Roller (California – July 16)

It’s easy to take risks on day trading and gambling when you’re using taxpayer money. Andrew Marnell of Los Angeles is charged with bank fraud. He allegedly used aliases to obtain $8.5 million in aid using fake tax filings and falsified records of payroll costs. He allegedly blew through about $200,000 in Las Vegas casinos, where he was caught on surveillance cameras at a Bellagio blackjack table. Authorities also claim he lost $500,000 on risky stock market trades. Wells Fargo previously fired him for embezzlement, according to news reports.

Handmade Entrepreneur (Arkansas – July 16)

Ganell Tubbs, the entrepreneur owner of Little Piglet Soap Company and Suga Girl Customs, an Etsy shop, is charged with fraudulently obtaining nearly $2 million in PPP loans. Days later she paid $8,000 on her student loan and then went on a spending spree at Sephora and other retailers, it is alleged.

Ex-Microsoft Executive (Washington – July 23)

Mohan Mukand, who used to work for Microsoft and Amazon according to his LinkedIn profile, is charged with submitting 8 PPP applications on behalf of six companies. According to the U.S. Attorneys office, the companies didn’t exist or didn’t have the employees he claimed. Authorities allege he bought a company on the Internet in May with no employees, and then forged documents to claim he had paid millions in payroll taxes in 2019. He allegedly transferred a quarter million dollars of proceeds to his personal brokerage account.

High-Living Florida Man (Florida – July 27)

David T. Hines of Miami is charged with fraudulently seeking $13.5 million in PPP money using false statements about various companies’ payroll expenses. He was approved for $3.9 million. Days later he allegedly bought a 2020 Lamborghini Huracan sports car for $318,000. He also allegedly squandered money at luxury retailers and Miami resorts.

Miami Chiropractor (Florida – July 29)

Dennis Nobbe, a chiropractor in Miami, is charged with wire fraud, health care fraud, money laundering and conspiracy. He allegedly obtained $200,000 in Paycheck Protection Program and Economic Injury Disaster funds and used the money for personal expenses. Allegations also claim he perpetrated a credit card scam on low-income patients. He allegedly got patients to open credit cards to pay for out-of-pocket medical expenses for services he did not fully render.

Houston Partier (Texas – August 4)

Lee Price III is charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. He allegedly received over $1.6 million. He then went on a luxury buying blitz acquiring a Lamborghini Urus, a Rolex watch, a 2020 Ford F-350 pickup truck, and real estate — according to allegations. He allegedly squandered thousands at strip clubs and nightclubs.

The DOJ and U.S. Attorneys are using a variety of charges for enforcement, including wire fraud (18 U.S.C. § 1343) and making false statements to the SBA and FDIC-insured banks (18 U.S.C. § 1014). Depending on the charges, penalties could include up to $1 million in fines and up to 30 years in prison, legal experts say.

But of course, the government has to prove the allegations. Justice Department lawyers remind everyone that, “A criminal complaint is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ”

More Prosecutions on the Horizon

PPP money is still available and the current deadline for applying is August 8, 2020 (unless extended). A total of roughly $649 billion has been authorized by Congress, leaving $130 billion still available for small businesses as of July 24th.

Have we seen the last of PPP fraud prosecutions? No. New ones are being announced weekly. But it’s important to remember that 30 frauds out of 5 million loans is a minuscule number. The overwhelming majority of loans have no allegations of fraud surrounding them.

Still, a June report by the Government Accountability Office found, “there is a significant risk that some fraudulent or inflated applications were approved.” Treasury Secretary Steven Mnuchin announced that the Treasury Department would review every PPP loan over $2 million. However, the GAO recommended oversight of the more than 4 million smaller loans, also.

The government watchdog also pressed for safeguards and oversight plans to avoid double dipping. There’s a recommendation to audit COVID-19 unemployment benefits paid to workers rehired by employers using PPP loan funds.

Yet to Come: The PPP Forgiveness Process

Another wrinkle is the loan forgiveness process. Millions of small businesses eventually will apply for forgiveness. That’s bound to trigger another round of scrutiny.

In order to get Paycheck Protection loans forgiven and not have to repay the money, small business owners have to show proof that at least 60% of the money was used for payroll and the rest for other permitted expenses. A requirement of forgiveness is that borrowers must rehire or retain workers — and maintain salary levels.

The DOJ has signaled it may also pursue civil penalties not just criminal prosecutions, particularly around loan forgiveness. Principal Deputy Assistant Attorney General Ethan P. Davis noted in a June 26th speech: “When the borrower is ready to seek forgiveness of the loan, it has to certify that the funds were in fact used to pay costs that are eligible for forgiveness. If an applicant knowingly answers any of these questions falsely, it may face False Claims Act liability.”

This means you have to be just as scrupulous when applying for forgiveness as when you applied for the money initially. The False Claims Act can impose steep financial penalties, including treble damages.

If the PPP debt is not forgiven, the interest rate is very low — 1%. Businesses that have to repay the money get 2 years to repay if funding was issued before June 5. If you got funding after June 5, you have five years to repay. The PPP promissory note you signed will have the terms applicable to you. See the SBA website for updated forgiveness information.

Should Business Owners Be Worried?

It’s a scary thing for legitimate business owners to sign borrower certifications under potential penalties of fines and prison time. The SBA programs have complex rules. It could be easy to trip up innocently.

This has caused some entrepreneurs and business owners to think twice about applying. No one under pressure of this pandemic wants to fumble on a technicality while legitimately trying to pay employees and keep their life’s work afloat. One local businesswoman told me she prayed for two weeks before applying because of her fears over confusing requirements.

Representatives of the Department of Justice say honest owners acting in good faith shouldn’t worry. Stephen J. Cox, the U.S. Attorney for the Eastern District of Texas, wrote in an op-ed in Texas Lawyer:

“Rest assured that we will be careful not to discourage legitimate businesses from accessing the important financial resources that Congress made available through the CARES Act. We will not punish companies that accessed stimulus funds in good faith compliance with the rules. Nor, will we seek out applicants who made technical mistakes in processing paperwork or honestly misunderstood regulatory or certification requirements. Our focus is on fraud.”

Let’s hope the entire government is on the same page as Mr. Cox.

This article is not intended as legal advice. It’s intended to offer news and peer perspective on an important issue that affects us as business owners. Stay informed and check with your attorney and/or accountant with questions.

Case data source and image source: Justice.gov

This article, “30 PPP Fraud Prosecutions So Far, and Counting” was first published on Small Business Trends

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[alfredrserrano]

The List: Top Austin-area financial planning firms

The 2019 Austin Business Journal list of financial planning firms includes firms with offices in the Austin area, including Travis, Williamson, Hays, Bastrop and Caldwell counties. The list is ranked by the number of certified financial planners (CFP) in the Austin office and ties are broken by the total number of certified professionals handling financial planning. Professionals include Certified Financial Planners (CFP), Chartered Financial Analyst (CFA), Investment Advisor Reps (IAR), Chartered Financial Consultant (ChFC), Chartered Life Underwriters (CLU), as well as Series 65 and 66 licenses. Data is gathered via ABJ surveys sent to company representatives. Only firms that responded to requests for information are included.

from Fort Lauderdale Real Estate News & Residential Real Estate News - Residential Real Estate News Headlines | Bizjournals.com & Banking & Financial News - Banking & Financial News Headlines | Bizjournals.com http://feeds.bizjournals.com/~r/industry_2/~3/Co18QpKorb8/the-list-top-austin-area-financial.html via

[benrossart]

10 Secrets Your Financial Advisor Won’t Tell You

You have heard every one the clichés that fiscal advisors really like to spout:"Make your money work for you!" "Stop earning money, start earning wealth!" They are all fantastic thoughts, to be certain, and likely good advice. However, what about things happening behind the facade of the silk tie and well-pressed match, he or she is not telling you?

If you are interested, keep reading to discover all the things your financial planner is maintaining to him or herself. And before you reserve an appointment, you can always find out a bit more about tackling your hard-earned dough by studying up about the 52 Ways to Be Smarter With Money in 2018.

1. You should not always employ an expert

Before you start comparing distinct advisement solutions, it is important to understand when to utilize a skilled and when it is possible to do it all on your own. Notably around tax year. Postcard tax filing may not be yet, but your scenario remains probably far less complicated than you might imagine.

Asking about to be sure that you've taken advantage of every tax break available for you may not be a terrible idea. But in the event that you just have one W-2 (or possibly two) and no additional streams of income, then you are likely better off doing this independently. And for more about taxes, take a look at The One Last-Minute Tax Move You Need to Know.

2. All specialists are not the Exact Same

Know the gap in abbreviations. Certified Public Accountants (CPAs) undergo state certificates to take care of bookkeeping, auditing, taxes, and consulting. Enrolled Agents (EAs), Certified Financial Planners (CFPs), and Tax Attorneys each possess their own licenses and certificates also but narrows their experience to more specific locations.

3. And you can actually save money by visiting an EA rather

Unlike CPAs, EAs are not needed to go through rigorous testing and are not specially trained as accountants. Therefore, they might be unable to provide you with complete, well-rounded financial information since they concentrate in 1 area.

But here is what: EAs still has to pass IRS proficiency tests so as to be lawfully authorized to perform your taxes as a paid adviser. If tax aid is all you require, an EA may become your speed. In the conclusion of the afternoon, employing an EA will probably save you a whole lot of cash, and they're plenty capable for your requirements. And for more information on saving money, have a look at these 40 Ways to Save 40 Percent of Your Paycheck.

4. Their"certifications" may be counterfeit

Finance professionals move by several names--financial planner, insurance professional, lifestyle coach, wealth manager, and much more. So, what gives? Does the certification issue? Everything comes down to the kind of"advice" you will be receiving. The Motley Fool puts it this way: "Just because someone says they provide financial advice, it may not be that they actually provide financial advice. They might just be selling you something."

5. You should conduct a" check"

You display prospective new hires, and why not to your prospective financial adviser? Assess the non-profit source the Better Business Bureau for any problems or suits between the adviser or their finance company. Do a little homework together with the Certified Financial Planner Board of Standards, Inc. to see whether there are any troubles with the adviser's license. The conduct of a meeting. It is fine to learn as much as possible about this person before employing their aid. You would not give just anyone control on your financial equilibrium, do you? And for more amazing interviewing information, check out 20 Interview Questions Smart Bosses Never Ask Job Candidates.

6. The greatest discounts on charges come from Family and Friends referrals

Yes, many consultants provide discounts, even if they don't sell them. Quite often, all you want to do is ask. They need to make a living also, so don't expect them to slash their fees in half to get any customer. But asking your family and friends to refer you're among the greatest ways to discover a respectable adviser. Negotiations work well with connections that are established.

7. They do not need to be a neighborhood

Austin Galvez CPA out of Haynie & Company notes that lots of individuals searching for a fantastic adviser get hung up on finding someone nearby. As this has always been the standard, the financial service business is changing together with the majority of other businesses which are adopting remote small business solutions. Galvez indicates that lots of experts are extremely familiar with Skype texting, along with another remote way of communication. If you are partial to a specific adviser, do not let proximity become a deterrent.

8. They really don't understand the Industry any greater than you

Or at least, they should not (insider trading is illegal, after all). Sure they probably have a great deal more expertise in tracking the marketplace compared to you, but they do not understand where the industry is moving and neither do you. You shouldn't enter an investment without consulting a seasoned practitioner, but you do not need to take their word as gospel, either. In theory, you could be about precisely the exact same level as your adviser with good research. To be certain that you don't go in the game blind, then follow these 10 tips on retirement savings.

9. Stay from promises and promises

If your adviser promises a certain amount of expansion, this is a significant red flag. There are an infinite number of things that influence market development, and markets will probably remain subject to a specific quantity of volatility. Rule of thumb: if it seems too good to be true, it likely is. Promises and warranties are only smoke in regards to investments.

10. Beware of "friendly advice"

"I'm telling you, this product is going to be huge in 5 years." We all secretly expect a buddy will pull us on another Google or Apple before the value skyrockets. Jeff Rose, CFP and writer of Soldier of Finance stated,"You know that stock tip your friend, family member, or co-worker has for you that is a sure thing?' Newsflash: it's not! I've had countless people approach me looking for my approval on some random stock tip that someone (usually with no investing experience) has given them the inside scoop on. Next time this happens, the easiest way to make money is to not invest in it." Find out more details by clicking on Greensboro fee only financial advisor.

[financialplanneraustin]

Everything We Need to Know About Financial Advisor

Choosing the right financial advisor in Austin can be an important decision for anyone to make. There are many aspects that need to be taken into consideration, and it's not always easy to know what is or isn't a good fit for you. This article will provide all of the information you'll need in order to find the best match for your needs, so read on!

Financial advisors can provide a number of services to you that include: planning, wealth management and estate planning.

One of the most important things for anyone looking for financial advice is knowing what type of service they need in order to achieve their goals. This will help them define if a fee-only or commission-based advisor is right for them.

The process of determining the right financial advisor for you can be a lengthy one, and it's important to make sure that they understand your needs. It is also wise to ensure that this person has experience in dealing with people like yourself or an industry connection who does.

Make sure that the financial planner you choose is trustworthy and has a license in good standing. There are many people out there who claim to be professional advisors, but don't have any certifications or designations to back up their claims. * Last of all it's important not to try choosing an advisor based on cost alone. While this should definitely be considered, it should not be the primary focus of your decision.

Remember that choosing a financial advisor is an important step in creating wealth and building assets for you and your family to help ensure economic security. It's never been more crucial than now to find someone who can provide all these services at once so take your time with this choice!

Considering current situations and client needs, DESMO Wealth Advisors, LLC provides with some of the best certified financial planner in Austin.

[desmowealthadvisors]

Wealth Management Austin Texas

Wealth Management and also Monetary Planning

Riches administration can be described as a sophisticated discipline associating with recommendations in regards to financial investment which integrates expert financial services and also economic planning. The main objectives are offering households dealing with services in retail banking, lawful resources, financial investment monitoring, as well as tax advice goals to maintain as well as expand long-term wide range. Monetary preparation can assist the individuals that are accumulating wide range or have actually already done so.

 Wide range administration can be exemplified through independent experts or huge business entities such as Citigold of Citibank and also the other expansions concerning services connecting to retail financial made for concentrating on clients dealing with retail worthy of high webs. Customers of such kind are most likely to be classified as 'top retail' or 'mass affluent' customers owing to total assets of theirs, possible items had by them from bank, possessions of their under administration, and lots of other division approaches.

 Financial institutions create exclusive solutions, branches, and various other advantages for preserving or drawing in the consumers that can earn more revenues in comparison with the customers outlining with retail banking. It should, nonetheless, be noted that clients of wealth administration can not be labelled as 'Private Banking' clients as they do not validate the criteria of services of financial offered by exclusive financial institutions.

 History

 The term 'Wide range Administration' traces its beginning in the 90s in the USA through Insurance coverage Companies, banks, and Broker Suppliers. The evolution of riches monitoring traces to high-net worth monetary consulting for people that take place to be upper clients of any one of the firms, to high degree exclusive banking which makes provisions for different kinds of financial investment, financial institution items, and also insurance. With the death of Glass-Steagall Act in the year 1999, financial firms have been able to make arrangements for all the 3 services from a solitary office.

 With development of wealth management in the form of expert solution, in addition to occupation opportunity, curricula like AAFM, i.e. American academy of Financial Monitoring accredited by CWM as well as Chartered Wide range Manager plan are scheduling changed riches monitoring training to individuals and also corporations alike. Riches Management is utilized to offer the affluent area, in addition to Chartered Monetary analysts, accredited managers of wealth, Public Accountants, government-licensed lawyers, insurance coverage experts, etc.

 Criteria for different countries

In the US, just CPAs as well as attorneys have the certificate offered by federal government for offering suggestions related to tax obligation or lawful matters on complex wealth management, tax obligation legislation, estate planning, retired life, or even various other legal issues like separation or company monitoring.

 In Australia, the regulations concerning wide range administration are such that only those consultants who qualify under PS 146, i.e. Plan Declaration no. 146, detailed under Financial Provider Reform Act of the year 2001, administered as well as regulated by ASIC, i.e. Australian Securities Investments Compensation are qualified to offer suggestions regarding financial items to the retail customers.

 Job profile

 Individuals participated in the wide range monitoring typically benefit brokerage firms, financial investment banks, accounting companies, law practice, trust fund departments, customer financial institutions, or portfolio administration and investment firms. Smaller ones like signed up advisors could likewise supply wide array relating to services pertaining to family as well as workplace.

 Products handled in wealth administration include stock trading and also stocks, investments linked with equity, derivatives as well as products connecting to organized financial investment, forex, device depends on and also mutual funds, investments as well as management of residential or commercial property, etc. Alternative investments relative to wealth administration include art, wine, precious metals, and so on.

 To understand more regarding Wealth Management Austin TX and also just how you can manage your wealth in an effective an effective fashion see us at Desmo Wealth Advisors LLC Austin TX.

Desmo Wealth Advisors, LLC Address: 111 Duck Lake Dr, Lakeway, TX 78734 Contact Us: 512-436-3149 Website: https://desmowealth.com Google Website: https://g.page/DesmoWealth Google Folder: https://bit.ly/30oR8gw

[digitalmark18-blog]

Investment and banking fees could cost you six figures over your lifetime

New Post has been published on https://britishdigitalmarketingnews.com/investment-and-banking-fees-could-cost-you-six-figures-over-your-lifetime/

Investment and banking fees could cost you six figures over your lifetime

Do you know how much money you’re wasting on fees, paid to your bank or investing firm? If you’re like most Americans, you probably have no idea. And it could cost you.

Most people estimate they will pay about $2,244 in investment and banking fees over the course of their lives, according to a survey in June from the personal-finance website NerdWallet. In reality, that number could be closer to $369,000, if you are a college graduate, the site found. “Sometimes fees are unavoidable, but you want to make sure you’re getting what you pay for,” said Justin Sullivan, a certified financial planner at PNC Wealth Management.

Other studies had more conservative estimates of the fees consumers pay over their lifetimes. The average American household will pay $155,000 in financial, bank and investment fees in a lifetime, according to FeeX.com, a site that specializes in identifying hidden fees. Another estimate by The Motley Fool, was slightly higher ($190,000) for someone who invests $10,000 per year.

“Most people who come to me as a client are completely unaware there are any fees associated with their 401(k),” said Elliott Weir, a certified financial planner based in Austin, Texas. “It’s extremely common for investors to not be aware of fund expense ratios they’re paying.” (An expense ratio is the total percentage of fund assets that goes towards advertising, administrative and other expenses; you would pay $10 per year for every $1,000 invested for a fund with a 1% expense ratio.)

How the researchers came up with that number

Here’s how NerdWallet researchers came up with the latest estimate. They took someone who opened a bank account at age 18 and an investment account at 22 with a life expectancy of 79 years, based on the Center for Disease Control’s 2016 life expectancy. The person would retire at age 67, the full Social Security retirement age for people born after 1959.

He or she would make a starting income of $51,022 per year, the average starting salary for the Class of 2017, according to the National Association of Colleges and Employers, a nonprofit based in Bethlehem, Penn., and that salary would increase by 3.5% every year, including inflation and real earnings growth.

The person would contribute 6.2% to a 401(k), and his or her employer would match 50% of that contribution, up to 6%, based on averages from Vanguard’s 2017 “How America Saves” report. He or she would then withdraw 4% of their savings starting at age 67. NerdWallet also assumed an expense ratio of 0.48%, an average from the Investment Company Institute.

The analysis also included average IRA fees, the amount the person would spend purchasing three stocks or exchange-traded funds per year (at $5 per trade), one mutual fund purchase per year at $19.99 and assumed returns of 6%. (The estimate also included average maintenance fees at major banks, including overdraft and ATM fees.)

The $369,000 estimate “seems high for the average American” when compared to all of the studies showing how little the average American has saved for retirement, said Billy Lanter, a certified financial planner and fiduciary investment adviser at Unified Trust Company in Lexington, Ky. Regardless of the actual dollar amount, he said, “Investors should do more due diligence to fully understand all of the costs associated with their financial assets.”

How to avoid those fees? Here are some steps to take:

Look at how much your 401(k) is charging you

On a paper statement or online, check your “fund fee” or “expense ratio,” O’Shea said. If it’s above 0.5%, it’s likely you could find a cheaper place to put your money. Of course, consider the returns you’re getting, too. Some funds are more expensive but could yield better results, and you may be paying for those returns. But if you’re seeing average returns, don’t pay above-average prices.

One factor working in consumers’ advantage, Sullivan said: Companies are competing with one another to lower their fees. “As the landscape becomes more competitive, it will work more in favor of consumers,” he said. Lanter adds, “Most importantly, be sure you’re working with a fiduciary who fully discloses their fees in a transparent manner and looks for low-cost options.”

Check your bank account fees

Are you getting charged a monthly “maintenance” fee? There are many bank accounts at online banks, credit unions or traditional banks that don’t cost anything. Personal-finance websites NerdWallet and Bankrate both have their own lists of banks that don’t charge fees to keep your money.

Change any behaviors that are within your control

Are you paying a fortune in overdraft fees? Are you constantly visiting out-of-network ATMs and getting charged for it? Carry cash when you can, so that you don’t have to visit an out-of-network ATM in a pinch. If you opted into overdraft fees on your bank account, tell your bank you want to opt out. Your card may get rejected at the register, but you won’t face overdraft fees when you lose track of how much is in your account.

Investment fees also stack up. “A typical advisory relationship includes fees for the adviser, investment vehicle management expenses, custodian platform fees, trading costs, and more,” said Brent Weiss, a certified financial planner and co-founder and head of planning at Facet Wealth in Baltimore, Md. “Often, there is no customization to meet the specific needs of the consumer and they end up paying fees for services they don’t need.”

Try an online calculator

NerdWallet has new calculators that can show you how much you’re paying in banking fees, expense ratios and 401k fees over time. Try them out to see how much you’re spending. If you’re uncomfortable with the total, consider switching to a lower-cost account.

Get a daily roundup of the top reads in personal finance delivered to your inbox. Subscribe to MarketWatch’s free Personal Finance Daily newsletter. Sign up here.

Source: https://www.marketwatch.com/story/investment-and-banking-fees-could-cost-you-six-figures-over-your-lifetime-2018-08-08

[blogiqraworld]

COVID-19 has changed everything. Both of our sons have had their life’s disrupted – high school prom, high school graduation, college forced to remote learn – including our eldest son at The Citadel taking a Judo class remotely. Does anyone want to guess how Judo can even work remotely?

My work has been mostly virtual and paperless for years. Now it is 100% virtual. We all, including my virtual assistants from around the world, have had their lives completely turned upside down. Millions of people have lost jobs, careers, families, and far too many lives have been lost.  

[unixcommerce]

30 PPP Fraud Prosecutions So Far, and Counting

Paycheck Protection Program (PPP) loans have aided more than 5 million small business owners, providing a much needed lifeline during the Coronavirus outbreak crisis. The overwhelming majority of business owners are legitimate and will use the money as intended to retain employees and stay operational.

But the PPP program has attracted a few rotten apples. And you won’t believe how rotten they are.

To date, the Justice Department has filed 30 PPP fraud cases. Defendants are charged with bilking taxpayers out of tens of millions of dollars. Luckily, the Feds have recovered a large part of the loan proceeds already.

And what’s been recovered tells a wild tale.

Feds have seized a 2020 Lamborghini Huracan sports car, a Rolex Presidential watch, a 5.73-carat diamond ring, and a diamond bracelet — all purchased with PPP loan money. Other loot includes a Tesla, a 26-foot Pavati Wake Boat, two Rolls-Royces, a Lamborghini Urus, and a Ford F-350 pickup truck.

Authorities also seized cash hoards, froze bank accounts, and recovered other assets.

Some defendants blew taxpayer money on wild spending sprees, including Las Vegas gambling, visits to strip clubs, and day-trading. In one case, a married couple was apprehended at JFK Airport purportedly attempting to flee the country after submitting 18 fraudulent applications.

Every government program attracts a small number of grifters and criminals. And the DOJ has made it a priority to root them out. On March 16, 2020, Attorney General William Barr directed all 94 U.S. Attorneys’ Offices to prioritize investigating and prosecuting PPP loan fraud cases.

PPP Loan Program Results

On March 27, 2020 Congress passed and President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act — or CARES Act. It authorized the Paycheck Protection Program. PPP is a low-interest, forgivable loan program designed to help small businesses and self-employed individuals.

In an unusual example of government speed, the Small Business Administration started accepting loan applications just a week later on April 3, 2020. Through July 24, the SBA has approved 5,005,261 loans, constituting $519,505,881,228, demonstrating its success.

The majority of the funds are going to help the nation’s 31 million small businesses, there’s no doubt about it. The number of fraud prosecutions is very small by comparison.

30 PPP Fraud Cases – So Far

Could these prosecutions involve nothing more than paperwork mistakes? They do not appear to be honest mistakes. All appear to involve egregious circumstances — assuming the government ultimately proves the facts. Some defendants actually were under indictment for other charges at the time of applying for loans. Others hid their criminal past.

Here’s a rundown of the 30 PPP loan fraud cases to date with some of the lurid details alleged:

Two Men, Identity Theft and a Conspiracy (Rhode Island – May 5)

David A. Staveley, aka Kurt D. Sanborn, and David Butziger were charged with conspiring to seek over $530,000 in PPP money. It’s alleged they falsely claimed to have dozens of employees at 4 different businesses, including a restaurant neither owned. They allegedly discussed their fraud in email and one assumed the identity of his own brother. Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office said in a statement, “Thankfully we were able to stop them before taxpayers were defrauded.”

Texas Engineer (Texas – May 13)

Shashank Rai, an engineer from Beaumont, is charged with multiple counts of fraud and false statements to the SBA for seeking more than $10 million in PPP funds. He allegedly claimed to have 250 employees when there is no record of any in his business, Rai Family LLC. Court documents allege that handwritten notes recovered from his trash describe how he planned to use $3 million of the money for personal investments.

Reality TV Personality (Georgia – May 13)

“Love & Hip Hop: Atlanta” star Maurice Fayne was indicted on fraud charges over a $3,725,500 PPP loan application for his company, Flame Trucking. Fayne allegedly claimed he had 107 employees and submitted forged bank statements. It’s alleged he then blew the money on a Rolex Presidential watch, a 5.73 carat diamond ring and other jewelry. He also allegedly used the money to pay $50,000 for restitution in a previous fraud case, $40,000 in back child support, $139,000 to lease a Rolls Royce Wraith — and $230,000 to associates who helped him run a Ponzi scheme. When arrested, he had almost $80,000 in cash at his home and $9,400 in his pocket, authorities claim.

East Texas Man and the Online Name Generator (Texas – May 19)

Samuel Yates of Maud, Texas is charged with fraudulently applying for $5 million with two different lenders. He claimed to have 400 employees, but actually had zero. The complaint claims Yates used a name generator on the Internet to create names of fake employees. He also allegedly submitted forged tax documents.

Manhattan Businessman (New York – May 21)

Muge Ma, a/k/a “Hummer Mars,” a Chinese national residing in Manhattan, was arrested on charges of trying to obtain over $20 million in PPP and EIDL money. Ma is alleged to have falsely represented to the SBA and five financial institutions that his companies had hundreds of employees when he was the only employee. He also allegedly was involved in a scheme claiming to represent the New York State Government in procuring COVID-19 test kits.

Hollywood Film Producer (California – May 22)

William Sadleir, the ousted head of Aviron Pictures, was charged with wire and bank fraud in connection with a $1.7 million PPP loan. He allegedly used some of the money to pay off $80,000 in personal credit cards and a $40,000 car loan. Sadleir was Executive Producer on films like Serenity, starring Matthew McConaughey. In an unrelated matter the SEC charged Sadleir with allegedly defrauding investors of $13.8 million through Aviron.

Lyft Software Engineer (Washington – May 22)

Baoke Zhang, a software engineer at ride share company Lyft, is charged with wire and bank fraud. He allegedly created fake technology companies to obtain $1.5 million in funds. U.S. Attorney Brian T. Moran said in a statement, “I am pleased that the systems designed to detect and deny fraudulent payments caught his scheme before federal funds went out the door.”

Man on Parole (Virginia – May 29)

Joseph Cherry II of Virginia was indicted on 10 counts of COVID fraud and faces 10 to 30 years of prison time on each count. Cherry was on supervised release in an unrelated federal case when he applied to the SBA program. It is alleged he got over $190,000 in proceeds and managed to withdraw cash or cashier’s checks for $140,000. “Providing false statements to gain access to SBA’s programs will be aggressively investigated by our office,” said Hannibal Ware, Inspector General of the U.S. Small Business Administration, in a statement.

Walmart Project Manager (Oklahoma – June 4)

Benjamin Hayford is charged with fraud for seeking about $4.4 million in PPP financing. He allegedly certified that his business was operating as of February 15, 2020 (a requirement of the law) and had 247 employees. Prosecutors say a search of his email account showed he didn’t even set up a company until a few days before applying in April. At the time of his arrest Hayford was a Project Manager for Walmart. The retail giant suspended him and stated the charges were unrelated to Walmart.

Auto Repair Shop Owner (California – June 5)

Geoffrey M. Palermo of Novato faces charges of wire fraud and making false statements. The former manager of the San Francisco Hilton allegedly embezzled from the hotel in a kickback scheme going back to 2013. After leaving the hotel he opened GMP Cars, an auto repair shop. In April he allegedly obtained a PPP loan of $1.7 million by falsely certifying that GMP Cars had employees for whom it paid salaries and payroll taxes. In fact, according to the criminal complaint, Palermo used company funds for lavish personal expenses including a Ferrari racing car, leaving the business in financial distress.

IT Company Business Owner (Illinois – June 16)

Rahul Shah of Evanston is charged with bank fraud and making false statements to a financial institution. He allegedly applied for $441,000 under the Federal Paycheck Protection program for several companies. The allegations say he submitted fake IRS documentation. Several individuals he allegedly submitted payroll documentation for said they never worked for his company, per investigators.

Austin High Roller (Texas – June 18)

Michael George McQuarn, 51, of Austin, is charged with with fraudulently receiving over $2 million in SBA loans for two fictitious companies, Vantastic Voyages, LLC and Happy Days Movers, LLC. McQuarn allegedly used the money for personal purposes including buying a 26-foot Pavati Wake Boat and a Rolls Royce.

IT Services Company Owner (Massachusetts – June 22)

Elijah Majak Buoi, president of Sosuda Tech LLC, is charged with fraudulently applying for over $13 million in PPP aid. Buoi allegedly misrepresented how many employees he had and that the United States was their primary residence (required). He ultimately received over $2 million but the government seized $1.98 million from business bank accounts.

Wedding Planner (Texas – June 23)

This owner of a wedding planning company is charged with submitting two PPP applications, and claiming to have 120 employees when he actually had none. Fahad Shah got $1.5 million in funds. He allegedly used the money to buy a Tesla car, make personal investments and make his home mortgage payments.

Married Couple Attempting to Flee (Virginia – June 24)

The FBI apprehended Monica Jaworska and her husband Tarik Jaafar at JFK Airport allegedly attempting to flee to Poland. The paid are charged with submitting 18 fraudulent Paycheck Protection applications with false payroll tax returns, and receiving $1.4 million in funds. The Feds managed to freeze most of the funds but not before the couple allegedly withdrew $30,000 in cash.

Funeral Director (Texas – June 24)

Jase DePaul Gautreaux aka Jase Dixon, a funeral director in Houston, is charged with seeking $13 million in funds and ultimately receiving over $1.6 million. The criminal complaint charges him with false statements to a financial institution, bank fraud and engaging in unlawful monetary transactions. He allegedly submitted applications on behalf of a business that did not exist and for businesses he did not own.

Owner of Private Investigation Firm (Ohio – June 24)

Nadine Consuelo Jackson is charged with bank fraud and other charges for seeking forgivable loans in the amount of $1.3 million, $1.2 million and another $46,000 in Economic Injury Disaster funding. She allegedly claimed to have 73 employees at her Dayton private investigation business. Three people she allegedly claimed as employees told investigators they never heard of her company. The bank recalled one loan and the Government seized funds for the other two.

Ophthalmologist Already Under Indictment (New York – June 24)

Apparently one fraud isn’t enough for some people. Meet Goyal, MD, an ophthalmologist in Rye, New York, was under indictment for healthcare fraud. That didn’t stop him from allegedly applying for two PPP loans using different business names. He also allegedly lied certifying he had no pending indictments. Acting U.S. Attorney Audrey Strauss said, “Goyal allegedly looted over $630,000 in federal funds earmarked for legitimate small businesses in dire financial straits.”

Seattle Doctor (Washington – June 30)

Dr. Eric R. Shibley is charged with one count of wire fraud and one count of bank fraud. The complaint alleges he applied several times to get aid totaling $3 million, in the names of businesses with no actual operations. He allegedly lied about his criminal past, and submitted fake tax documents including names of people who did not work for the businesses.

Man Under Indictment (Wisconsin – July 8)

Ahmad Kanan, formerly of Madison, is charged with wire fraud and money laundering. He allegedly applied for two loans totaling $119,560 acting as owner of Altin Labs, Inc. The indictment alleges Kanan was under federal indictment on an unrelated matter at the time. He then allegedly transferred $47,000 to his personal checking account.

Trucking Company Owner (Utah – July 8)

Hubert Ivan Ugarte of Draper, with the assistance of Lisa Bradshaw Rowberry of Provo are charged with fraudulently obtaining a PPP loan of $210,000. He allegedly lied about not being under criminal charges — he in fact was under indictment for a bribery scheme. After two banks declined, Rowberry allegedly said she would help him re-apply through a friend. Ultimately Ugarte received funds from Transportation Alliance Bank. Ugarte allegedly used funds for past due truck payments to Kenworth instead of required payroll.

Medical Company Owner (Florida – July 10)

Carlos Belone is charged with wire fraud and other charges in connection with several fraudulent PPP applications. He allegedly got $22,000 which he then deposited partially into a personal account and partially gave to another company in furtherance of a $5.6 million Medicare kickback scheme.

Construction Company Owner (Washington D.C. – July 13)

Oludamilare Olugbuyi is charged with fraudulently obtaining two PPP loans totaling more than $400,000. Allegedly he submitted fake IRS 1099 Forms containing worker social security numbers that were invalid. The complaint claims he submitted a tax return reporting $175,565 income for tax year 2019. However, on April 14, 2020, Olugbuyi allegedly filed a 1040 “non-filer return” reporting $1 in income for 2019 which qualified him to receive a $1,200 economic impact payment.

The Cryptocurrency Investor (Texas – July 14)

Joshua Thomas Argires of Houston was arrested on various fraud charges. Argires allegedly filed two fraudulent applications seeking $1.1 million in forgivable funding. One was on behalf of a company called Texas Barbecue and the other called Houston Landscaping. Argires allegedly invested some of the proceeds in a cryptocurrency account and withdrew other funds via ATM transactions.

The Vegas High Roller (California – July 16)

It’s easy to take risks on day trading and gambling when you’re using taxpayer money. Andrew Marnell of Los Angeles is charged with bank fraud. He allegedly used aliases to obtain $8.5 million in aid using fake tax filings and falsified records of payroll costs. He allegedly blew through about $200,000 in Las Vegas casinos, where he was caught on surveillance cameras at a Bellagio blackjack table. Authorities also claim he lost $500,000 on risky stock market trades. Wells Fargo previously fired him for embezzlement, according to news reports.

Handmade Entrepreneur (Arkansas – July 16)

Ganell Tubbs, the entrepreneur owner of Little Piglet Soap Company and Suga Girl Customs, an Etsy shop, is charged with fraudulently obtaining nearly $2 million in PPP loans. Days later she paid $8,000 on her student loan and then went on a spending spree at Sephora and other retailers, it is alleged.

Ex-Microsoft Executive (Washington – July 23)

Mohan Mukand, who used to work for Microsoft and Amazon according to his LinkedIn profile, is charged with submitting 8 PPP applications on behalf of six companies. According to the U.S. Attorneys office, the companies didn’t exist or didn’t have the employees he claimed. Authorities allege he bought a company on the Internet in May with no employees, and then forged documents to claim he had paid millions in payroll taxes in 2019. He allegedly transferred a quarter million dollars of proceeds to his personal brokerage account.

High-Living Florida Man (Florida – July 27)

David T. Hines of Miami is charged with fraudulently seeking $13.5 million in PPP money using false statements about various companies’ payroll expenses. He was approved for $3.9 million. Days later he allegedly bought a 2020 Lamborghini Huracan sports car for $318,000. He also allegedly squandered money at luxury retailers and Miami resorts.

Miami Chiropractor (Florida – July 29)

Dennis Nobbe, a chiropractor in Miami, is charged with wire fraud, health care fraud, money laundering and conspiracy. He allegedly obtained $200,000 in Paycheck Protection Program and Economic Injury Disaster funds and used the money for personal expenses. Allegations also claim he perpetrated a credit card scam on low-income patients. He allegedly got patients to open credit cards to pay for out-of-pocket medical expenses for services he did not fully render.

Houston Partier (Texas – August 4)

Lee Price III is charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. He allegedly received over $1.6 million. He then went on a luxury buying blitz acquiring a Lamborghini Urus, a Rolex watch, a 2020 Ford F-350 pickup truck, and real estate — according to allegations. He allegedly squandered thousands at strip clubs and nightclubs.

The DOJ and U.S. Attorneys are using a variety of charges for enforcement, including wire fraud (18 U.S.C. § 1343) and making false statements to the SBA and FDIC-insured banks (18 U.S.C. § 1014). Depending on the charges, penalties could include up to $1 million in fines and up to 30 years in prison, legal experts say.

But of course, the government has to prove the allegations. Justice Department lawyers remind everyone that, “A criminal complaint is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ”

More Prosecutions on the Horizon

PPP money is still available and the current deadline for applying is August 8, 2020 (unless extended). A total of roughly $649 billion has been authorized by Congress, leaving $130 billion still available for small businesses as of July 24th.

Have we seen the last of PPP fraud prosecutions? No. New ones are being announced weekly. But it’s important to remember that 30 frauds out of 5 million loans is a minuscule number. The overwhelming majority of loans have no allegations of fraud surrounding them.

Still, a June report by the Government Accountability Office found, “there is a significant risk that some fraudulent or inflated applications were approved.” Treasury Secretary Steven Mnuchin announced that the Treasury Department would review every PPP loan over $2 million. However, the GAO recommended oversight of the more than 4 million smaller loans, also.

The government watchdog also pressed for safeguards and oversight plans to avoid double dipping. There’s a recommendation to audit COVID-19 unemployment benefits paid to workers rehired by employers using PPP loan funds.

Yet to Come: The PPP Forgiveness Process

Another wrinkle is the loan forgiveness process. Millions of small businesses eventually will apply for forgiveness. That’s bound to trigger another round of scrutiny.

In order to get Paycheck Protection loans forgiven and not have to repay the money, small business owners have to show proof that at least 60% of the money was used for payroll and the rest for other permitted expenses. A requirement of forgiveness is that borrowers must rehire or retain workers — and maintain salary levels.

The DOJ has signaled it may also pursue civil penalties not just criminal prosecutions, particularly around loan forgiveness. Principal Deputy Assistant Attorney General Ethan P. Davis noted in a June 26th speech: “When the borrower is ready to seek forgiveness of the loan, it has to certify that the funds were in fact used to pay costs that are eligible for forgiveness. If an applicant knowingly answers any of these questions falsely, it may face False Claims Act liability.”

This means you have to be just as scrupulous when applying for forgiveness as when you applied for the money initially. The False Claims Act can impose steep financial penalties, including treble damages.

If the PPP debt is not forgiven, the interest rate is very low — 1%. Businesses that have to repay the money get 2 years to repay if funding was issued before June 5. If you got funding after June 5, you have five years to repay. The PPP promissory note you signed will have the terms applicable to you. See the SBA website for updated forgiveness information.

Should Business Owners Be Worried?

It’s a scary thing for legitimate business owners to sign borrower certifications under potential penalties of fines and prison time. The SBA programs have complex rules. It could be easy to trip up innocently.

This has caused some entrepreneurs and business owners to think twice about applying. No one under pressure of this pandemic wants to fumble on a technicality while legitimately trying to pay employees and keep their life’s work afloat. One local businesswoman told me she prayed for two weeks before applying because of her fears over confusing requirements.

Representatives of the Department of Justice say honest owners acting in good faith shouldn’t worry. Stephen J. Cox, the U.S. Attorney for the Eastern District of Texas, wrote in an op-ed in Texas Lawyer:

“Rest assured that we will be careful not to discourage legitimate businesses from accessing the important financial resources that Congress made available through the CARES Act. We will not punish companies that accessed stimulus funds in good faith compliance with the rules. Nor, will we seek out applicants who made technical mistakes in processing paperwork or honestly misunderstood regulatory or certification requirements. Our focus is on fraud.”

Let’s hope the entire government is on the same page as Mr. Cox.

This article is not intended as legal advice. It’s intended to offer news and peer perspective on an important issue that affects us as business owners. Stay informed and check with your attorney and/or accountant with questions.

Case data source and image source: Justice.gov

This article, “30 PPP Fraud Prosecutions So Far, and Counting” was first published on Small Business Trends

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[alfredrserrano]

The List: Top Austin-area financial planning firms

The 2018 Austin Business Journal list of financial planning firms includes firms with offices in the Austin area, including Travis, Williamson, Hays, Bastrop and Caldwell counties. The list is ranked by the number of certified financial planners (CFP) in the Austin office and ties are broken by the total number of certified professionals handling financial planning. Professionals include Certified Financial Planners (CFP), Certified Financial Analysts (CFA), Investment Advisor Reps (IAR), Chartered Financial Counselors (ChFC), Chartered Life Underwriters (CLU), as well as Series 65 and 66 licenses. Data is gathered via ABJ surveys sent to company representatives. Only firms that responded to requests for information are included.

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