Finance

Feds Net Another Guilty Plea Related To Covid-Related Financial Fraud

Published

1 year ago

August 14, 2023

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Feds Net Another Guilty Plea Related To Covid-Related Financial Fraud

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In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial assistance during the pandemic. The CARES Act included funding in the form of loans to eligible businesses—intended to be used to help keep the lights on. Unfortunately, these loans also proved to be magnets for fraud. Since then, officials have been working to identify and prosecute those who took advantage of the program.

Guilty Plea

Last week, Arashio Harris, a Corrections Sergeant with the Miami-Dade Corrections and Rehabilitation Department, pleaded guilty to wire fraud in connection with his fraudulent applications for two Paycheck Protection Program (PPP) loans, two Economic Injury Disaster Loans (EIDL), and an EIDL advance. Harris entered his guilty plea in Miami, Florida, before Chief U.S. District Judge Cecilia M. Altonaga.

EIDL

The EIDL program was created to support small businesses as they recovered from the pandemic.

EIDL loan funds were intended to be used for working capital and other standard operating expenses. The loans were not forgivable and were required to be repaid.
EIDL Advance funds were awarded to existing COVID-19 EIDL applicants who meet certain criteria. The advances were like grants, but without the typical U.S. government grant requirements. Most importantly, EIDL Advances did not need to be repaid.

PPP

The PPP was an SBA-backed loan that helped businesses keep employees working during the pandemic.

There were two draws available, depending on timing and the criteria. The loans qualified for full loan forgiveness if, during the covered period following the loan disbursement, the business maintained employee and compensation levels, and the loan proceeds were spent on payroll costs and other eligible expenses. At least 60% of the proceeds must have been spent on payroll costs.

Facts

According to the facts admitted at the change of plea, Harris was the owner and president of two companies, The Good Family Property Solutions Inc. and Flying Lions LLC. On April 3, 2020, working with an associate, Harris submitted a fraudulent application in the name of Good Family, seeking an EIDL and an EIDL advance. Harris falsely claimed that for the 12-months before Jan. 31, 2020, Good Family had gross revenues of approximately $130,000 and nine employees. As a result, Good Family obtained a $9,000 EIDL advance that did not need to be repaid and $14,500 in EIDL loan proceeds.

On June 30, 2020, Harris submitted a fraudulent EIDL application to the SBA for Flying Lions, claiming that Flying Lions had gross revenues of over $480,000 and 10 employees during that same period. As a result, Flying Lions obtained approximately $150,000 in EIDL proceeds.

Harris also admitted that (again, with assistance), he fraudulently obtained two PPP loans in the name of Good Family.

On July 9, 2020, Harris submitted a PPP loan application falsely claiming that Good Family had ten employees and a monthly payroll of approximately $51,710. To support his application, Harris submitted a 2019 Form 1120—corporate return—falsely claiming that Good Family had over $1,050,000 in income and had paid wages and salaries that year of over $768,000, as well as a 2019 Form 944—payroll tax return—showing over $620,500 in wage and salary payments. The application also included false IRS Forms W-2 and payroll records. As a result of this false and fraudulent application, Harris was given a $129,275 PPP loan.

On Feb. 26, 2021, Harris applied for a second-draw PPP loan for Good Family. The second-draw application again relied on false income and payroll numbers. As a result, Good Family was granted a second-draw PPP loan of $129,276.

Sentencing

Harris is scheduled for sentencing on October 27 before Chief U.S. District Judge Altonaga in Miami, Fla. He faces a sentence of up to 20 years in prison.

Focus On Fraud

The FBI’s Miami Area Corruption Task Force, which includes task force officers from the MDC-OIG, working in conjunction with IRS-CI Miami and SBA-OIG Investigations Division’s Eastern Region, investigated the case. It’s part of the COVID-19 Fraud Enforcement Task Force, intended to enhance efforts to combat and prevent pandemic-related fraud.

If you have information about attempted pandemic-related fraud, you can call the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or make a complaint online using the NCDF Web Complaint Form.

Expect to read about more investigations and arrests. According to its website, “The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the crisis.”

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Finance

Concurrent Partners with TIFIN @Work to Elevate Workplace Financial Solutions

Published

2 hours ago

December 18, 2024

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Concurrent Partners with TIFIN @Work to Elevate Workplace Financial Solutions

Combining Advisory Expertise and AI-Driven Insights to Deliver Real Financial Impact

BOULDER, Colo. and TAMPA, Fla., Dec. 18, 2024 /PRNewswire/ — Concurrent, one of the fastest-growing RIA aggregators in the United States, has partnered with TIFIN @Work, an AI-powered workplace growth platform, to deliver a more focused and personalized approach to workplace financial solutions. The partnership combines TIFIN @Work’s AI-driven tools with Concurrent’s advisory expertise to deliver clear, actionable outcomes for employees, employers, and advisors.

TIFIN @Work partners with Concurrent to deliver personalized workplace financial solutions through AI-driven technology and expert advisory services, enhancing financial outcomes for employees, employers, and advisors. #WorkplaceSolutions #AI #FinancialInnovation #TIFINAtWork #Concurrent #EmployeeWellness #FinancialAdvisory

“Concurrent’s rapid growth has been built on our ability to deliver personalized, scalable solutions that meet the unique needs of clients,” said Casey Bates, Managing Director of Strategy and Growth at Concurrent. “Our partnership with TIFIN @Work strengthens our offering, combining cutting-edge AI technology with our proven advisory strategies to create financial solutions with real impact.”

TIFIN @Work’s AI technology delivers tailored actions to employees, helping them optimize their financial strategies—whether it’s optimizing paycheck contributions or planning for long-term goals. Concurrent ensures these insights are put to work, providing the expertise needed to make decisions that benefit both employees and their employers.

“This partnership is about creating better wealth outcomes with tailored solutions that truly make a difference,” said Marc McDonough, CEO of TIFIN @Work. “By combining our technology with Concurrent’s advisory experience, we’re offering a solution that directly addresses the financial needs of the workplace, creating practical value for all involved.”

The integration of TIFIN @Work’s platform with Concurrent’s advisory services provides employers with a streamlined approach to supporting employees. The result is improved engagement, stronger financial confidence, and greater opportunities for advisors.

About Concurrent
Concurrent is a multi-custodial, hybrid registered investment adviser (RIA) created to give independent advisors all the resources they need to grow their businesses and adapt to the evolving financial needs of their clients. Headquartered in Tampa, Florida, Concurrent was established in 2017 by former advisors, business owners and industry leaders to cultivate a national network of independent providers of unbiased, fiduciary advice.

Investment advisory services through Concurrent Investment Advisors, LLC (“Concurrent”), an SEC Registered Investment Advisor. To learn more about Concurrent, visit www.poweredbyconcurrent.com.

Finance

4 money experts reveal how to reflect on your personal finances — and set goals for 2025

Published

10 hours ago

December 18, 2024

Press Room

4 money experts reveal how to reflect on your personal finances — and set goals for 2025

Wealth management, banking and finance concept. Smart banking with technology.

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The end of the year is a time of reflection for many, and while some will look back on their experiences and achievements, money experts say it’s just as important to take stock of your finances.

Staying on top of your spending may have seemed like an uphill struggle this year as wages have often failed to keep up with the increased cost of living. In the U.S., Bankrate’s 2024 Wage to Inflation Index found that between January 2021 and June 2024, prices increased 20%, but wages only rose by 17.4% over the same period.

As a result, nearly half of Americans say they are living paycheck to paycheck, according to a recent Bank of America survey.

“The end of the year can be a great time to reflect on your finances, but it’s important not to be hard on yourself,” Tamara Harel-Cohen, co-founder of financial wellbeing app RiseUp, told CNBC Make It.

Harel-Cohen advised against scrutinizing every penny spent because it’s not possible to always meet your financial goals.

Meanwhile, Sarah Coles, head of personal finance at Hargreaves Lansdown, said there’s always room for improvement where money management is concerned.

“It can feel that as long as you get to the end of the year roughly in one piece financially, you’re probably OK. However, this approach leaves you vulnerable to neglecting key aspects of your finances,” Coles said.

CNBC Make It asked four financial experts for their top tips on reflection and money management as the end of the year approaches.

‘Have self-compassion’

It’s a “common phenomenon” in December for people to feel ashamed about how they handled their money, Vicky Reynal, a financial psychotherapist and author of “Money on Your Mind,” told CNBC Make It.

“One thing that I would say is to have self-compassion,” Reynal said. “There’s almost a sense that everybody feels they should be better than they are.”

This can stop us from thinking productively about how to turn things around, Reynal said. The truth is that managing finances is “not an innate skill,” and it’s often not taught by schools or parents.

“So we pick it up as we go, and we’ll inevitably make mistakes. But all we can do is, rather than simmer in in guilt and shame, we can use that and reframe it in terms of: What can I do differently? What do I want to do differently next year financially?” Reynal added.

‘5 cornerstones of sound finances’

Hargreaves Lansdown’s Coles suggested an audit of five key money areas.

“We should specifically take stock of the five cornerstones of sound finances: Are your short-term debts under control? Do you have the right things in place to protect your family – including life insurance and a will? Do you have enough emergency savings to cover three-to-six-months’ worth of essential spending? Are you on track with pension saving? And are you investing to make more of your money where you can?” she said.

Understanding where you are financially within these five key areas can help you create the foundations of a budget and new money goals, Coles added.

Don’t make budgeting complicated

A lot of money resolutions in the new year fail because they tend to be overcomplicated, according to Reynal.

“People, sometimes, will come proudly to me and say: ‘I’ve set up this spreadsheet, it’s 30 tabs. I’m going to be recording all my expenses.’ But that’s not sustainable,” Reynal said. “I would always encourage people to keep it simple and find the right tools.”

She suggested using budgeting apps and investment platforms that cut out the work for you.

“It will simplify and enable a cycle in which you’re feeling empowered. You’re getting small wins, and that kind of perpetuates a virtual circle in which you’re starting to build confidence that: ‘Look, I managed to do it this month, and so maybe I’ll manage to do it next month,’” she added.

Harel-Cohen agreed, saying even a “five-minute check-in” with yourself in the morning about how you’re going to spend money during the day will help you make better decisions without feeling overwhelmed.

“Remember, improving your financial wellbeing is a marathon, not a sprint,” Harel-Cohen added.

Small, lasting improvements

The second reason that many money resolutions fail is because they’re too ambitious, according to Reynal.

“There’s a lot to be said about small wins in terms of building confidence, building a sense of agency, and building momentum,” she said, adding that setting “small, actionable goals,” is the route to success.

Harel-Cohen advised automating monthly payments into your savings account to achieve long-term goals such as holidays or retirement.

She said: “After setting this up, just sit back and forget about it.”

Consider your feelings

It’s okay to treat yourself on occasion too, according to Ylva Baeckström, a senior lecturer in finance at King’s Business School.

Spending money shouldn’t always be anxiety-inducing, she said. “What did you really spend on things you don’t really need? And how did it make you feel spending that money? Did it make you anxious or stressed or did it make you feel good?” Baeckström said.

“If it made you feel anxious you need to change your habit. However, if it made you feel good, it may be worth continuing to allow yourself this particular luxury. Allow yourself some treats that make you feel good and cut the spend that makes you feel anxious,” she added.

Finance

Seven Hills Realty Trust Closes $45.0 Million Bridge Loan to Finance the Acquisition of a Hotel in Boston, Massachusetts

Published

18 hours ago

December 17, 2024

Press Room

Seven Hills Realty Trust Closes .0 Million Bridge Loan to Finance the Acquisition of a Hotel in Boston, Massachusetts

NEWTON, Mass., December 17, 2024–(BUSINESS WIRE)–Seven Hills Realty Trust (Nasdaq: SEVN) today announced the closing of a $45.0 million first mortgage floating rate bridge loan to finance the acquisition of Club Quarters Hotel, a 178-room hotel located at 161 Devonshire Street in Boston, Massachusetts.

The loan has a three-year initial term with two one-year extension options, subject to the borrower meeting certain requirements. SEVN’s manager, Tremont Realty Capital, was introduced to the transaction by JLL, which advised Arch & Devonshire LLC, the borrower.

Tom Lorenzini, President and Chief Investment Officer of SEVN, made the following statement:

“The Club Quarters Hotel benefits from being near the Massachusetts State House, Faneuil Hall, Boston Common, the Boston Theatre District and many significant historical sites. The closing of the loan to finance the acquisition of this hotel demonstrates our ability to identify and execute compelling loan investment opportunities. Furthermore, we continue to be active in the market and maintain a strong pipeline of quality loan opportunities to generate attractive risk adjusted returns for our shareholders.”

About Seven Hills Realty Trust

Seven Hills Realty Trust (Nasdaq: SEVN) is a real estate finance company focused on originating and investing in first mortgage loans secured by middle market transitional commercial real estate. SEVN is managed by Tremont Realty Capital, an affiliate of The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with nearly $41 billion in assets under management and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. For more information about SEVN, please visit www.sevnreit.com.

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