CAMDEN, NJ – Tommy Hawkins, a former branch manager of a national bank, and Sieff Robert Sargeant, a New York resident, have pleaded guilty to charges related to a multi-state COVID-19 relief fraud. U.S. Attorney Philip R. Sellinger announced these admissions, highlighting a conspiracy that involved obtaining fraudulent Paycheck Protection Program (PPP) loans totaling approximately $5 million.
Hawkins, 61, of Philadelphia, admitted to organizing the scheme by exploiting his position to facilitate the acquisition of at least 38 PPP loans under false pretenses through the Conshohocken, Pennsylvania branch of his bank. He collaborated with several accomplices to recruit individuals with minimal or non-existent business operations to apply for the loans, using materially false information concerning employee numbers and payroll expenses. These fraudulent activities occurred during 2020 and early 2021, leading to Hawkins receiving kickbacks from the proceeds.
Sieff Robert Sargeant, 44, from Island Park, New York, also pleaded guilty to laundering the proceeds from these fraudulent loans. In April 2021, after receiving a PPP loan for his business based on false claims processed by Hawkins, Sargeant engaged in further fraudulent activity by issuing fake payroll checks to disguise the illicit use of the funds.
The charges of bank fraud conspiracy for Hawkins and money laundering for Sargeant were addressed in the U.S. District Court by Judge Karen M. Williams.
Sentencing for both individuals will follow, closing a significant chapter in the misuse of federal funds intended to support businesses during the COVID-19 pandemic.