U.S. attorney charges a dozen people on COVID-19 fraud charges in Idaho
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BOISE — After using the pandemic to defraud programs intended to help those financially affected, a growing number of Idahoans have been federally charged, thanks to the Idaho COVID-19 Fraud Task Force.
According to a news release from U.S. Attorney Josh Hurwit, the task force has charged a dozen people on criminal COVID-19 fraud charges.
The amount of money relating to fraud cases is reportedly over $7 million.
“Credit goes to the prosecutors and investigators who are sparing no effort to identify COVID fraud, to hold the perpetrators accountable and to return stolen funds to the taxpayers,” Hurwit said in the release. “While I am proud of the successes we have had so far, the Task Force is still in its early phases. We will not rest until we have done everything in our power to seek justice against those who took advantage of the COVID-19 pandemic to line their pockets through fraud.”
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The task force was formed last September, and promised to “work jointly to hold accountable criminals who unjustly enriched themselves at the expense of taxpayers by defrauding economic aid programs.”
The nine most recent cases were highlighted in the news release, showing how some were using COVID-19 aid programs to fraudulently obtain funds.
Recent Covid-19 Fraud Cases
Craig Marlow
Craig Marlow, 40, of Blackfoot, was indicted by a federal grand jury on Sept. 13, on wire fraud charges for allegedly obtaining more than $900,000 in fraudulent EIDL (COVID-19 Economic Injury Disaster Loan) program proceeds.
According to allegations in the indictment, between May 2020 and July 2021, Marlow used the identities of individuals known to him — primarily family members — to illegally obtain EIDLs disbursed by the Small Business Administration.
He also submitted at least two fraudulent applications using his own identity. According to the indictment, Marlow submitted the applications using shell entities and provided false statements in the applications, including false information about the gross revenue, monthly revenue, cost of goods, cost of operations, and number of employees for the entities in whose names the applications were submitted.
Marlow allegedly submitted, and caused to be submitted, ten fraudulent loan applications and obtained $926,700.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lawrence Sikutwa
Lawrence Sikutwa, 43, of Boise, was sentenced to 30 months, followed by five years of supervised release on Sept. 25, for bank fraud and money laundering.
According to court documents, between April 2020 and February 2021, Sikutwa submitted three fraudulent PPP loan applications and, as a result, obtained approximately $347,000 in fraudulent loan proceeds.
Sikutwa used the identities of two people to submit two of the PPP (Paycheck Protection Program) loan applications. All three loan applications Sikutwa submitted contained false certifications about the companies’ opening dates, the number of employees and amount of payroll, and that the loan proceeds would be used for business-related expenses.
Sikutwa also reportedly submitted false and fraudulent documents with the loan applications to substantiate the information on the applications.
After receiving the loan proceeds, Sikutwa caused more than $190,000 to be transferred offshore. Other proceeds were transferred to various individuals and used for personal expenses.
Valentin Lapatski
Valentin Lapatskiy, 34, of Meridian, was sentenced to 15 months, followed by two years of supervised release on Sept. 26, for wire fraud.
Lapatskiy fraudulently obtained $300,000 in EIDLs by making materially false and fraudulent representations to the Small Business Administration in applications for two businesses.
Lapatskiy falsely claimed in an application that his purported company Valdi Homes INC, opened in November 2017, and he became the owner in February 2018.
He also falsely represented a purported limousine company in his wife’s name. In both applications, Lapatskiy falsely claimed gross revenues, cost of goods sold, and employees for 2019.
Anubor Bagbi
Anubor Bagbi, 63, of Las Vegas, Nevada, pleaded guilty to aggravated identity theft and bank fraud and is set for sentencing on Dec. 7, 2023.
While investigating Bagbi for opening fraudulent business accounts and trying to cash stolen and/or counterfeit business checks, it was discovered that he previously used some of the same accounts, business names, and identities to fraudulently apply for, obtain, and spend PPP and EIDL funds.
Beginning in April 2020, Bagbi caused losses of $664,828 in PPP and EIDL funds by submitting false and fraudulent applications.
Patricia Pischel
Patricia Pischel, 38, of Star, pleaded guilty to wire fraud and is set for sentencing on Nov. 15.
Pischel fraudulently obtained $219,409 in PPP and EIDL funds. Pischel made materially false and fraudulent misrepresentations about three businesses and in reliance on those misstatements, she received approximately five PPP loans and EIDLs.
Pischel’s misrepresentations included the number of employees, monthly payroll and wage information in purported IRS Forms W-3.
Nels Anderson
Nels Anderson, 58, of Holbrook, was sentenced to six months, followed by three years of supervised release for a false claim.
Anderson was charged for submitting a CFAP (Coronavirus Food Assistance Program) 2 application that contained a materially false, fictitious, and fraudulent livestock claim.
When asked for additional documentation, Anderson submitted fraudulent invoices. Anderson did not receive the CFAP 2, but the intended loss was $114,557.19.
Jimmy Winebrenner
Jimmy Winebrenner, 79, of Post Falls, pleaded guilty to using or trafficking in unauthorized access devices and is set for sentencing on Nov. 14.
Between May and August 2020, Winebrenner received at least 16 unemployment benefits cards in the mail from various state agencies in names other than his own.
Between July and August 2020, Winebrenner obtained $81,180 in unemployment benefits from state agencies.
Daniel Labrum
Daniel Labrum, 42, of South Jordan, Utah, pleaded guilty to bank fraud and is set for sentencing on Nov. 16, 2023.
Labrum submitted six PPP loan applications to financial institutions, one of which was based in Boise, on behalf of several businesses.
The applications contained false information about the businesses concerning, among other things, the number of employees and their monthly payroll, certifications about the companies and the intended use of the PPP funds.
In total, the applications sought approximately $1,914,571 in PPP loans.
Eric O’Neil
Eric O’Neil, 58, of Bethel, Connecticut, pleaded guilty to bank fraud and is set for sentencing on Dec. 7, 2023.
O’Neil submitted two PPP loan applications to financial institutions, one of which was based in Boise, on behalf of his company.
The applications contained false information about his business concerning, among other things, the number of employees and its monthly payroll, certifications about the company and the intended use of the PPP funds.
In total, the two applications sought approximately $777,501 in PPP loans.