ORIGINAL CASE DETAILS: NFL Free Agent Joshua Bellamy

Current NFL free agent Joshua Bellamy was recently indicted for his alleged role in a plot to defraud the United States government in filing fraudulent loan applications to receive forgivable money under the Paycheck Protection Program (PPP) as guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP allows businesses who qualify to receive loans at a 1% interest rate which can later be forgiven if the businesses spend the money within a specific time period with a minimum percentage going towards payroll expenses. The criminal charges unsealed against Bellamy allege that he obtained a PPP loan worth in excess of $1.2 million dollars which he allegedly spent on luxury goods and trips to the casino. Bellamy is also alleged to have sought to get PPP loans for close friends and family members. In total, the overall conspiracy is alleged to involve nearly 100 fraudulent loan applications which in total are worth more than $24 million. Federal authorities have stated that nearly $17.5 million worth of these loans were approved and funded by various financial institutions. There are currently 10 other defendants facing charges for their roles in this alleged federal white-collar crime conspiracy. Bellamy was most recently a member of the New York Jets, but was released on September 8, 2020, just two days before he was arrested and charged in the current case.

CRIMINAL CHARGES AND POTENTIAL PENALTIES

Bellamy is facing federal charges of wire fraud, bank fraud, and conspiracy to commit both wire fraud and bank fraud. A description of these charges and potential penalties is as follows:

• Wire fraud: This is a federal felony that alleges some sort of fraudulent scheme which causes the use of wire, telephone, radio, or other communications device to help further the fraud scheme. A conviction for wire fraud carries a maximum of up to 20 years in federal prison and a fine of up to $250,000. This maximum gets bumped up to 30 years in federal prison and fines of up to $1,000,000 when the alleged fraud scheme involves a presidentially declared disaster or federal financial institution.
• Bank fraud: This is a federal felony that alleges a scheme to defraud a financial institution or obtain money from a financial institution due to some sort of false or fraudulent conduct. A conviction for bank fraud carries a maximum of up to 30 years in federal prison and a fine of up to $1,000,000.
• Conspiracy to commit wire fraud: This is a federal felony that carries the same maximum penalties as the underlying offense. In this case, Bellamy faces the same maximum penalties as actual wire fraud.
• Conspiracy to commit bank fraud: This is a federal felony that carries the same maximum penalties as the underlying offense. In this case, Bellamy faces the same 30-year maximum federal prison sentence and $1,000,000 fine as he does under his charge of bank fraud.

If you have any questions about the charges listed above, then it is advised that you speak to an experienced federal white-collar crime attorney who can best answer your legal questions.

FEDERAL FOCUS ON FRAUD AGAINST THE CARES ACT

The FBI along with federal prosecutors have put a strong focus on the investigation and prosecution of those who they suspect of defrauding the pandemic assistance fund. These federal pandemic assistance fraud cases are expected to become more commonplace as federal authorities start to catch up with those who federal authorities believe have defrauded the program through false and fraudulent PPP loans. If you are being investigated or have already been charged with an offense related to the pandemic assistance fund, then it is important to speak to an experienced federal white-collar crime attorney as soon as possible.