Texas resident Samuel Yates, 32, has been charged with allegedly attempting to file fraudulent bank applications for more than $5 million in loans related to COVID-19 aid, according to a Press release Friday (January 15) from justice department.

According to the statement, Yates allegedly sought millions in repayable loans from two separate banks under the provisions of the CARES Act assistance for small businesses in the Paycheck Protection Program (PPP), saying it had more than 400 paid employees. In reality, he had no employees for the company he claimed to run, according to the statement. In a second request, he allegedly claimed to have employed more than 100 and obtained a loan of $500,000.

Yates allegedly submitted a list of alleged employees with the applications, which he obtained from a random name generator on the Internet, according to the statement. He also allegedly submitted false tax documents with both applications. Yates was charged with two counts of wire fraud.

The PPP loan program was introduced under the CARES Act happened last year, just after the start of the pandemic. It was intended to help eligible small businesses apply for loans to help them stay afloat during pandemic-related shutdowns and restrictions.

However, it became clear that large public companies had used the program to obtain funds even though they did not need them.

There has also been an abundance of coronavirus-related fraud, including other such scams where people would set up fake businesses to access relief money. Last year, PYMNES reported hundreds of open investigations into fraud associated with the PPP program. Investigators say the issues ranged from fake businesses receiving money to businesses receiving aid despite having more than 500 workers and businesses that got money even though they were banned. because of their debts to the government.

the Treasury Departmentaccording to reports, has received more than double the number of suspicious activity reports related to loans that it would receive in a normal year.