Florida Real Estate Broker Agrees To Pay Over $4 Million To Resolve False Claims Act Allegations Relating to Fraudulent Cares Act Loans

PANAMA CITY, FLORIDA – Real Estate Broker Chad Wade, 41, of Panama City, Florida,
along with his companies Ideal Property Holdings, LLC; Grand Panama Resort Properties, LLC; Beach Life Properties PCB, LLC; First Texas Mortgage, LLC; PCB Limousine, LLC; South Houston Vending Company, LLC; and Emerald Oak Stables, LLC, have agreed to settle allegations that they violated the False Claims Act (“FCA”) by knowingly providing false information in support of multiple Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan Program (“EIDL”) loans. The settlement was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.

“The theft of any amount of taxpayer funds is inexcusable,” said U.S. Attorney Coody. “However, the defendant’s deceptive acts of diverting millions of dollars in emergency financial assistance from small businesses during the pandemic is beyond the pale. This civil resolution and the forthcoming criminal sentence will punish the defendant’s criminal conduct and should serve as a significant deterrent to those who would steal from hardworking taxpayers to unlawfully enrich themselves. With our law enforcement partners, we remain committed to investigating and prosecuting those who engage in acts of COVID related fraud.”

The United States alleged that from in or about April 2020, through June 2021, Wade prepared and submitted, or caused to be submitted, false and fraudulent applications and documents to obtain four EIDL loans and fourteen PPP loans totaling $1,506,803. Wade submitted numerous false documents, including false federal tax documents, false state tax documents, and false employee wage reports. The United States further alleged that Wade used the EIDL and PPP funds to grow his real estate businesses by purchasing and paying off properties; purchasing a vacation villa in Mexico; buying a red 1981 Ferrari (among other luxury items); paying personal expenses; and otherwise funding a lavish lifestyle, in direct violation of the terms of the EIDL and PPP programs. The United States also alleged that Wade prepared and submitted, or caused to be submitted, false and fraudulent forgiveness applications wherein he falsely certified that the entire loan amounts were used to pay eligible business costs.

“Falsifying information to gain access to vital federal funds intended to support American small businesses is deplorable,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Today’s settlement sends a strong message that those responsible will be held accountable. I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”

On July 7, 2023, Wade plead guilty to three criminal counts in connection with the fraudulent EIDL and PPP loans: (1) Wire Fraud; (2) Money Laundering; and (3) Bankruptcy Fraud. His sentencing is scheduled for October 19, 2023. Wade agreed to pay $4,027,804.69 in damages and penalties under the FCA, of which $1,579,531.25 is restitution.

The civil matter was handled by Assistant United States Attorneys Mary Ann Couch and Marie Moyle and the criminal matter was prosecuted by Assistant United States Attorney Corey J. Smith from the United States Attorney’s Office for the Northern District of Florida, with assistance from the U.S. Small Business Admission Office of General Counsel and the U.S. Small Business Admission Office of Inspector General.

The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.


Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *