Up to 70 Broward Sheriff’s Employees Accused in Massive PPP Loan Fraud Scheme

A jaw-dropping report published this week by Florida Bulldog reporter Dan Christensen alleges that between 50 and 70 Broward Sheriff’s Office (BSO) employees will soon face federal charges for defrauding the Paycheck Protection Program (PPP) during the COVID-19 pandemic. As a criminal defense attorney practicing in South Florida for over 25 years, I have seen many PPP fraud cases come through my office – but the scope of corruption described in this investigation is truly staggering.

Overview of the Alleged BSO PPP Fraud Scheme

According to Christensen’s sources within BSO, dozens of indictments are imminent against BSO personnel accused of fraudulently applying for and receiving large PPP loans. The accused individuals include around 15-20 BSO deputies and supervisors, as well as dozens of detention deputies, jail guards, and civilian BSO employees. Some commanding officers up to the rank of captain are also alleged to have participated.

The COVID-19 Fraud Strike Force Team, operating out of the U.S. Attorney’s Office in Miami, is spearheading the investigation. The sheer number of BSO employees implicated – representing up to 5% of BSO’s workforce – is unprecedented in the history of the agency.

How the BSO PPP Fraud Scheme Worked

The Paycheck Protection Program was rolled out in early 2020 as an emergency measure to help businesses retain employees during COVID-19 lockdowns. Applicants could receive low-interest, forgivable loans by self-certifying that the funds would be used to cover payroll and other business expenses.

In the alleged BSO scheme, employees applied for PPP loans as if they were independent business owners or contractors when, in reality, they remained fully employed by BSO throughout the pandemic. By misrepresenting their employment status, they qualified for large loan amounts that ultimately did not have to be repaid. Essentially, free money courtesy of the U.S. taxpayer.

Why BSO Employees May Have Been Tempted to Defraud the PPP Program

While obviously unethical and illegal, it is not difficult to understand why some BSO employees may have felt tempted to take advantage of the chaotic PPP program, which was rushed out with minimal oversight in 2020.

At the time, first responders were lauded as heroes, working long hours under dangerous conditions while the rest of the country was locked down. Yet their pay never reflected the heightened risk. BSO salaries, always lower than at other South Florida agencies, must have felt even more inadequate for the demands of the job during a pandemic.

PPP loans up to 2.5 times monthly payroll may have seemed like fair compensation for the hazards BSO deputies and civilian staff faced daily. Of course, once greed took over, the funds obtained grossly exceeded any reasonable hazard pay. However, the pressures and inequities of the pandemic likely primed the pump for widespread abuse of the emergency aid program within BSO’s ranks.

Potential Defenses for Indicted BSO Employees

While the ethics of PPP fraud among first responders can be debated, the alleged actions of BSO employees clearly violated federal law. Those ultimately indicted will require experienced criminal defense counsel to face the serious felony charges they are likely to incur.

When representing clients accused of PPP fraud, some of the best defenses I have employed include:

  • Lack of criminal intent – Mistakes in paperwork or misunderstandings about complex PPP rules can potentially negate the intent required to convict on fraud charges.
  • Duress – Given the uncertainties of the pandemic, some applicants may have felt unlawfully pressured into doing whatever was necessary to secure their livelihoods.
  • Minimal harm – If repaid promptly, funds obtained through an unlawful PPP application often caused negligible financial damage. Full restitution can convince prosecutors or a judge to show leniency.
  • Disproportionate punishment – First offenders accused of white-collar offenses like PPP fraud often face incarceration vastly disproportionate to their crimes. Punishment fitting the offense is a strong mitigating principle.

While each case differs, skilled defense lawyers can often achieve favorable outcomes for PPP fraud defendants through vigorous investigation, negotiating leverage, and a commitment to justice.

What This Scandal Means for BSO and Law Enforcement

The repulsive spectacle of dozens of Broward deputies and staff lining their pockets with aid intended for vulnerable small businesses will deal a heavy blow to public trust. BSO was already reeling from numerous scandals under former Sheriff Scott Israel, including the Parkland shooting response and deputies lying on official reports.

Current Sheriff Gregory Tony, appointed after Israel’s removal by the governor, talked a big game about reform and integrity when he took office. But sweeping PPP fraud on his watch exposes those as empty words. How far up the BSO chain of command did knowledge or willful ignorance of the scheme extend? Investigators must follow the evidence wherever it leads.

At a time of growing outcry over police abuses nationwide, law enforcement must be held to the highest ethical standards. Those who swore an oath to serve the public cannot act as if they are above the law. While the allegations remain unproven until trial, rogue officers who dishonor their badge must face justice. Otherwise, community trust in law enforcement will only continue to plummet.

Anyone facing charges related to this case is urged to immediately retain counsel to protect their rights. Though indictments appear imminent, the full truth has yet to emerge.

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