According to officials, a Nevada man was sentenced Thursday to two years and four months in federal prison for fraudulently obtaining over $500,000 in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program loans.
The Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and then laundering the money through family, friends, and others, officials stated.
According to court documents, Brandon Casutt, 52, of Henderson, submitted multiple false and fraudulent applications to the SBA and four SBA lenders on behalf of two entities he controlled, seeking to obtain more than $5.7 million fraudulently.
Two of Casutt’s fraudulent applications ultimately received funding: a PPP loan for approximately $350,000 in the name of a purported business called Sky DeSign, and an EIDL program loan for roughly $150,000 in the name of a purported charity called Skyler’s CF Foundation.
While the loan applications falsely affirmed that each entity had numerous employees, significant payroll expenses, and substantial revenue, neither had employees nor paid any wages.
After receiving the PPP money, Casutt laundered it by writing dozens of fake payroll checks – each in the amount of about $8,330 – to himself, family members, and friends.
On many of the checks, Casutt falsely wrote “pandemic pay” or “back pay” in the check memo.
Casutt cashed or deposited these fake paychecks.
Then, within days and at Casutt’s direction, the money was diverted back to a bank account under Casutt’s control. Casutt then used the money to buy a house in Henderson.
On Aug. 26, 2020, Casutt pleaded guilty to one count of wire fraud and one count of concealment money laundering.
IRS-CI and the FBI Las Vegas Field Office investigated the case.
Trial Attorney Sara Hallmark, Assistant Chief Cory E. Jacobs of the Criminal Division’s Fraud Section, and former Assistant U.S. Attorney Eric C. Schmale for the District of Nevada prosecuted the case.