Larry Jordan, 45, from Lancaster, New York, has been sentenced to 18 months in federal prison for his involvement in a conspiracy to commit bank and wire fraud through fraudulent Paycheck Protection Program (PPP) loan applications. This announcement was made by the U.S. Attorney’s Office for the Western District of New York.
The Fraudulent Scheme
Between April and September 2020, Jordan and his brother, Sutukh El—also known as Curtis Jordan or Hugo Hermes Hurtington—collaborated to file eight fraudulent PPP loan applications for businesses they owned or controlled. According to court documents, three applications were submitted to Evolve Bank & Trust, while five were sent to Lendio, a financial technology company based in Utah.
False Claims and Fabricated Documents
The submitted applications falsely inflated the payroll expenses for 2019, enabling the companies to qualify for larger PPP loans. To substantiate their fraudulent claims, Jordan and El submitted IRS forms that had never been filed with the IRS, along with fabricated payroll registers containing false employee names, personal details, and salaries.
For example, a loan application submitted to Evolve Bank & Trust on behalf of 5 Stems Inc. falsely claimed that the company employed 194 individuals with an average monthly payroll of $242,133.33. In reality, the business had only nine employees and an annual payroll of approximately $57,380.
Consequences of the Fraud
Evolve Bank approved the fraudulent application and disbursed $605,200, which was subsequently deposited into an account controlled by Sutukh El. However, instead of using the funds for their intended purpose of payroll, as mandated by the PPP guidelines, the defendants diverted the money for personal investments, home improvements, and other unrelated expenses.
Status of Co-Conspirator
Sutukh El has also faced legal consequences for his role in the scheme. He was previously convicted and is currently awaiting sentencing as the investigation continues into their fraudulent activities.
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