Missouri Western District | Lee’s Summit Business Owner Charged with CARES Act Fraud Scheme

KANSAS CITY, Mo. – A Lee’s Summit, Mo., business owner has been indicted by a federal grand jury for spending more than $900,000 in federal COVID-19 business relief funds on personal real estate and the sale of a Chevrolet Camaro.

Sammy Adam Joseph, 47, was indicted Wednesday in an eight-count indictment unsealed by a federal grand jury in Kansas City. That indictment was sealed and made public today after Joseph’s arrest and preliminary hearing. appearance.

Joseph remains in federal custody pending a detention hearing that has yet to be scheduled. Yusuf is a flight risk because he owns a condominium in Lebanon and traveled to Lebanon three times in 2023, according to the government’s arrest warrant. Joseph also poses a risk to the community as he has been identified in social media photos with assault weapons. .

Joseph is the owner of Adams & Joseph, Inc., which operates two gas stations in the Kansas City, Mo., metropolitan area. According to the indictment, his business received approximately $1.9 million under the Economic Injury Disaster Loan (EIDL) program, which is part of the Coronavirus Response, Relief, and Economic Security (CARES) Act.

The purpose of the CARES Act was to provide emergency financial assistance for the economic impact caused by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration to provide Economic Harm Disaster Loans to eligible small businesses experiencing significant financial hardship due to the economic impact of the COVID-19 pandemic.

According to the indictment, Adams & Joseph received a total of $1,869,900 in EIDL payments between June 2020 and November 2021.

The indictment alleges that Joseph used EIDL money to purchase a residence in Lee’s Summit, land in Kansas City and a Lee’s Summit building in Grandview, using at least $900,000 in EIDL proceeds for personal gain. Mo. and a blue 2019 Chevrolet Camaro.

Joseph is charged with theft of six government properties related to EIDL proceeds that he allegedly spent on unauthorized purchases. Joseph is charged with two counts of money laundering related to the proceeds of crime.

The indictment also includes forfeiture claims, which require Joseph to forfeit to the government any property obtained from the alleged crimes, including a money judgment of at least $948,120 and three parcels of real estate in Lee’s Summit, Kansas City. , and Grandview.

The charges in this indictment are merely accusations, not proof of guilt. Evidence supporting the charges must be presented to a federal court jury, whose job it is to determine guilt or innocence.

Assistant United States Attorney Paul S. Becker is prosecuting the case. It was investigated by National Security Investigations.

Pandemic Accountability Committee Task Force

The Pandemic Accountability Task Force was created to promote transparency and facilitate coordinated oversight of the federal government’s response to the COVID-19 pandemic. PRAC’s 20 member Inspectors General cross program and agency boundaries to uncover fraud, waste, abuse and mismanagement of more than $5 trillion in COVID-19 spending, including spending through the Payroll Protection Program (PPP) and Economic Inspectors identifies key risks. Injured Disaster Loan (EIDL) program. This work was also supported by PRAC’s Center of Excellence for Pandemic Analytics, which applies the latest advances in analytics and forensic technologies to help OIGs and law enforcement conduct data-driven pandemic aid fraud investigations.

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