York Tax Preparer Admits to Bank Fraud in PPP Loan Scheme

A York-based tax preparer has pleaded guilty to bank fraud for his involvement in submitting numerous fraudulent Paycheck Protection Program (PPP) loan applications. Dommonick T. Chatman, 50, admitted to his role in facilitating these applications through his business, The Chatman Group, LLC, which resulted in the disbursement of over $341,000 in government funds. Chatman has agreed to repay the full amount disbursed as restitution.

The scheme, which spanned several months in 2021, involved Chatman either preparing or approving fraudulent applications for nearly twenty individuals. These applications sought a combined total exceeding $400,000 in loans. The Paycheck Protection Program, established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was designed to provide financial assistance to small businesses impacted by the COVID-19 pandemic. Loans were intended for expenses like payroll, rent, and utilities, with the potential for forgiveness if used for eligible purposes. To qualify for these loans, businesses were required to provide information on their operations, including employee numbers and expenses, along with supporting documentation.

Chatman’s fraudulent activities included submitting applications for individuals who did not meet the program’s eligibility criteria. Specifically, applicants either lacked businesses in existence by the required February 15, 2020, deadline or did not possess the necessary income to justify the loan amounts requested. As a tax preparer, Chatman had personal knowledge of many of these applicants, having prepared their tax returns and knowing them personally, which allowed him to understand the fraudulent nature of their loan requests. He acknowledged receiving approximately 5% of each loan amount, roughly $1,000 per application, and shared these proceeds with an employee who assisted in processing the applications. Furthermore, Chatman admitted to obstructing the government’s investigation by destroying a handwritten list of clients who had received PPP loan applications through his company. The maximum penalty for bank fraud under federal law includes up to 30 years of imprisonment, supervised release, and substantial fines. The investigation was conducted by the Federal Bureau of Investigation and the U.S. Department of the Treasury, Office of Inspector General.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, Middle District of Pennsylvania.

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