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Pastor gets four years in prison for using fake staffing firm to pursue PPP loans

May 24, 2023

A Miami church pastor was sentenced to four years in prison after using a fake staffing firm to pursue money under the Paycheck Protection Program, the US Attorney’s Office reported. The program was aimed at helping businesses to retain employees during the Covid-19 pandemic.

Elie Floradin, 59, will also have to pay $535,996 in restitution to the US, according to the office. Floradin was referred to as “the self-described head pastor of the New Bethel Baptist Church in Miami.”

Floradin allgegedly caused an intermediary to repeatedly file false PPP applications, according to the office. One was a fake staffing firm through which Floradin claimed to pay approximately $960,000 in annual wages to dozens of employees. The fake firm received an initial PPP loan of approximately $200,000. The office said Floradin also submitted three more fraudulent claims on its behalf, seeking approximately, $600,000 in additional loans, though these loans were denied.

In addition, the government discovered another fraudulent PPP loan of $336,000 after Floradin had pleaded guilty, according to the office.

PPP loans went out to qualifying oranizations with a maturity of two years and an interest rate of 1%. They were to be used on payroll costs, interest on mortgages, rent and utilities. However, interest and principal on PPP loans would be forgiven if a business spent the loan proceeds within a designated period of time and used a certain percentage of the loans on payroll expenses.