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Tyndall AFB Service Member Agrees to $24,000 Settlement Over Alleged False PPP Loan Claims
An active-duty Air Force service member stationed at Tyndall Air Force Base in Northwest Florida has agreed to pay $24,000 to resolve allegations of submitting fraudulent Paycheck Protection Program loan applications during the COVID-19 pandemic.
An active-duty Air Force service member stationed at Tyndall Air Force Base has agreed to pay $24,000 in civil damages to resolve allegations of Paycheck Protection Program (PPP) loan fraud, federal prosecutors announced.
Federal Allegations of Fraudulent CARES Act Claims
According to the U.S. Department of Justice, Negleatta Davis submitted false applications and documents around April 2021 to secure a $14,375 PPP loan as a sole proprietor for a business called Apple Jreamzz Treats & Things. The business entity was registered in Nevada on July 1, 2020.
Federal prosecutors stated that the loan was fraudulently obtained in part because the business was established after the operational eligibility cutoff required under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Despite the disqualifying creation date, the Small Business Administration (SBA) subsequently forgave the loan, resulting in a total payout of $16,938.09, which included accrued interest and lender processing fees.
Multi-Agency Investigation and Civil Resolution
The case was investigated through a joint effort by the Air Force Office of Special Investigations (AFOSI) and the SBA, reflecting ongoing federal efforts to safeguard taxpayer dollars and recover funds improperly disbursed during pandemic relief programs.
Assistant U.S. Attorney Mary Ann Couch led the prosecution for the office of U.S. Attorney John P. Heekin in the Northern District of Florida. To resolve the allegations under the False Claims Act, Davis agreed to pay $24,000 in civil damages.
Federal officials emphasized that the settlement resolves civil allegations only, and there has been no formal judicial determination of liability or admission of criminal wrongdoing.
Sources
- BOP Correctional Officer Settles to Resolve PPP Loan Dispute
- Western District of Louisiana | Violations of the False Claims Act as the Result of Fraudulent Payment Protection Program Loans Settled in United States District Court | United States Department of Justice
- Eastern District of Virginia | Alabama corporation settles Paycheck Protection Program false claims | United States Department of Justice
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