US Attorney’s Office, Eastern District of Texas, Oct. 15, 2021
SHERMAN, Texas – A former McKinney man has been charged with federal violations related to his alleged participation in a scheme to file fraudulent loan applications seeking millions of dollars in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Sinoj Kallamplackal Joseph, 42, was charged in an indictment filed in the Eastern District of Texas with seven counts of wire fraud and three counts of making false statements to a bank. The indictment alleges that Joseph submitted fraudulent applications for over $3 million in PPP loans to an SBA-approved lender in the names of MK Analytics, LLC; Sanbi Solutions, LLC; and KMS Traders Group, LLC. In these applications, Joseph fabricated payroll records, including the number of employees working for his companies and the amounts of his payroll costs, the indictment alleges. The indictment also alleges that Joseph submitted fraudulent documentation in support of his applications. If convicted, Joseph faces up to 20 years in federal prison for the wire fraud charges and up to 30 years in federal prison for making false statements to a bank.
“This indictment is the latest installment in our District’s efforts to hold accountable those who perpetrate fraud on the Paycheck Protection Program,” said Acting U.S. Attorney Nicholas J. Ganjei. “PPP has been a vital tool for American small businesses and their employees who have struggled with the economic fallout from the pandemic. EDTX is committed to pursuing fraudsters who have exploited this program to the detriment of others.”