Florida Man Indicted After Obtaining Over $7 Million in Loan Fraud Scheme

A central Florida man has been indicted in the Eastern District of Pennsylvania on charges of trying to defraud the government out of more than $7 million.

76-year-old Barrie J. Osborne of Celebration, Florida, was indicted on several charges of trying to defraud federal loan programs that were designed for small businesses to find relief both before and during the coronavirus pandemic. His charges include conspiracy to commit wire and bank fraud, wire fraud, bank fraud, and conspiracy to commit money laundering.

Osborne allegedly attempted to obtain fraudulent loans from the Paycheck Protection Program, the Economic Injury Disaster Loans, and the Small Business Administration loan program. Authorities allege that Osborne worked alongside eight other individuals who were based out of California to apply for these loans.

Osborne is the registered agent for the accounting, bookkeeping, and tax assistant company, Guardian Angel Associates LLC. Alongside his co-conspirators, Osborne began applying for fraudulent loans in January 2018 before the pandemic began. His first applications were made to the small business administration. Following the onset of the pandemic, Osborne later defrauded the PPP and EIDL programs that were created under the federal government's coronavirus relief package.

Officials explained that the loan applications were made on behalf of businesses that had not been active or ones that were operating in a limited capacity. The Justice Department explains that “In exchange for fees, Osborne made the businesses appear to be functioning companies with operations and employees by creating fake documents, including fake bank statements and fictitious tax documents.” The Justice Department goes on to explain that Osborne went as far as providing a “script” for his co-conspirators to read off of when they were talking to the loan lenders.

Officials explained that his fraud operation resulted in a successful payout of over $7.3 million. In addition to obtaining the money, Osborne also created what authorities described as a “forgiveness plan.” Under this plan, Osborne directed his co-conspirators to document the illegally obtained loans as payroll expenses. This way, Osborne had a greater chance of having the loans forgiven when applying for loan forgiveness. As part of the loan program, PPP loans can be forgiven if portions of the funds are used on payroll expenses.

United States Attorney Jennifer Arbittier Williams shared following the news of the indictment, “PPP, SBA and EIDL funds are intended to help American small-businesses continue paying their employees, even if revenues have dropped dramatically.” Williams adds, “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. As alleged, Osborne led a conspiracy to fraudulently obtain $7 million in funds that could have helped struggling businesses and individuals.”