Business ProfileforI Am Liquid Inc.

As of May 6, 2022:

The U.S. District Court for the Northern District of Ohio sentenced Phillip J. Augustin, 53, of Coral Springs, to 78 months in prison, and James Stote, 56, of Hollywood, to 120 months in prison. Stote and Augustin each pleaded guilty to conspiracy to commit wire fraud on Dec. 14, 2021.

According to court documents, Augustin and Stote obtained a fraudulent PPP loan for Augustin’s company, Clear Vision Music Group LLC, using falsified documents. After submitting that application, Stote and Augustin immediately began trying to illicitly obtain larger PPP loans for themselves and their associates. Stote and Augustin recruited additional PPP loan applicants and prepared and submitted fraudulent loan applications for them in exchange for a share of the loan proceeds. Augustin used his network of business contacts as a manager for professional football players to recruit loan applicants. The applications they submitted for these loans relied on fake payroll numbers, falsified IRS forms, and phony bank statements. Stote submitted or facilitated at least 79 fraudulent loan applications worth at least $35 million. Among those loans, Augustin was responsible for at least 34 fraudulent loan applications worth at least $15 million.

In addition to his prison sentence, Stote was ordered to serve three years of supervised released and pay more than $10.1 million in restitution and more than $1.1 million in forfeiture. Augustin was ordered to serve three years of supervised released and pay more than $5.9 million in restitution and more than $272,000 in forfeiture.

LINK: https://www.justice.gov/opa/pr/two-men-sentenced-covid-19-relief-fraud-scheme

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As of February 3, 2022:

A Florida woman was sentenced to 44 months in prison for defrauding the Paycheck Protection Program (PPP) of more than $3.3 million in loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents and evidence presented at trial, Keyaira Bostic, 32, of Pembroke Pines, obtained a PPP loan of $84,515 for her company, I Am Liquid Inc., based on false information about the company’s number of employees and average payroll and on false supporting tax and bank documents. Bostic paid more than $21,000 to a co-conspirator, James Stote, as a kickback for his assistance in preparing and submitting the fraudulent loan application. The evidence showed that Bostic, in exchange for kickbacks, referred other co-conspirators to the scheme and Stote submitted fraudulent PPP loan applications on their behalf. Those loan applicants sought more than $3.3 million in fraudulent PPP loans and obtained nearly $2 million in PPP loan proceeds.

A federal jury in Fort Lauderdale found Bostic guilty of conspiracy and wire fraud on Nov. 24, 2021. In addition to her prison sentence, Bostic was ordered to serve three years of supervised released and pay approximately $1.3 million in restitution and $124,515 in forfeiture.

In addition, on Feb. 1, Luke Pierre Jr. was sentenced to two years in prison for obtaining a fraudulent PPP loan of $414,675 as part of this criminal scheme. According to court documents, Pierre, 36, of Port St. Lucie, pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on Nov. 1, 2021. As part of the fraud scheme, Pierre obtained a PPP loan for his company, Most Wanted Bullyz LLC (MWB), a dog breeding business, in which he falsely represented that MWB had 21 employees and an average monthly payroll of $165,870. In reality, MWB had no employees and no monthly employee payroll. Pierre gave a large portion of the fraudulent loan proceeds he received to co-conspirators who helped obtain the loan, including Stote, and disguised one such payment of over $100,000 as “stud fees.” In addition to his prison sentence, Pierre was ordered to serve three years of supervised released and pay $414,675 in restitution and $414,675 in forfeiture.
Stote pleaded guilty on Dec. 15, 2021, to conspiracy to commit wire fraud in the Northern District of Ohio. He is scheduled to be sentenced on May 6.

LINK: https://www.justice.gov/opa/pr/two-florida-residents-sentenced-prison-covid-19-relief-fraud

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As of November 29, 2021:

A federal jury convicted a Florida woman on Nov. 24 for fraudulently obtaining a Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents and evidence presented at trial, Keyaira Bostic, 32, of Pembroke Pines, obtained a PPP loan of $84,515 for her company, I Am Liquid Inc., based on false information about the company's number of employees and average payroll, and based on false supporting tax and bank documents. Bostic also paid more than $21,000 to an alleged co-conspirator, James Stote, as a kickback for his assistance in preparing and submitting the fraudulent loan application. The evidence also showed that Bostic, in exchange for kickbacks, referred other co-conspirators to the scheme on whose behalf Stote submitted fraudulent PPP loan applications. Those loan applicants sought more than $3.3 million in fraudulent PPP loans and obtained nearly $2 million in PPP loan proceeds.

Bostic was convicted of conspiracy to commit bank fraud and wire fraud and three counts of wire fraud. She was found not guilty of bank fraud. She is scheduled to be sentenced on Feb. 3, 2022, and faces a maximum penalty of 20 years in prison for each count of conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Stote was charged by information on Nov. 10 with wire fraud, bank fraud, and conspiracy to commit wire fraud. His case remains pending.

For further information, contact:
US Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530-0001
Website: https://www.justice.gov

LINK: https://www.justice.gov/opa/pr/florida-woman-convicted-covid-19-relief-fraud