Former Bank Manager Sentenced to 65 Months for $5M PPP Loan Fraud

Tommy Hawkins was sentenced to 65 months for helping secure $5 million in fraudulent PPP loans.Photo byImage: Tysonomo Multimedia

Tommy Hawkins, 61, of Philadelphia, was sentenced today to 65 months in prison for his role in orchestrating a conspiracy to help individuals fraudulently obtain at least 38 Paycheck Protection Program (PPP) loans totaling approximately $5 million, the U.S. Attorney's Office for the District of New Jersey announced.

According to documents filed in the case and statements made in court, Hawkins, who worked as the branch manager of a national financial institution in Conshohocken, Pennsylvania, in 2020 and early 2021, conspired with others to submit fraudulent PPP loan applications.

The U.S. Attorney’s Office stated that Hawkins collaborated with Eric Rivera, Lisa Smith, and others to recruit individuals with companies that had little or no operational activity. These individuals were instructed to open business accounts at Hawkins’ branch and apply for PPP loans under false pretenses.

The department noted that Hawkins assisted in submitting loan applications containing materially false information about the number of employees and payroll expenses of the companies.

The applications also included fraudulent documents, such as falsified tax forms, the U.S. Attorney's Office confirmed. Based on these misrepresentations, Hawkins’ bank approved 38 PPP loans and disbursed approximately $5 million in funds.

In addition to receiving incentive compensation from the bank for opening new business accounts, Hawkins also had a separate arrangement with Rivera and Smith. The department stated that Hawkins was paid $5,000 for each PPP loan he helped to obtain.

The U.S. Attorney’s Office revealed that in April 2021, one such fraudulent loan was issued to a company owned by an individual named Sargeant. After receiving the funds, Sargeant paid another individual, James Wessels, to create fake payroll checks.

These checks were cashed by a third party, who returned most of the cash to Sargeant, thus concealing that the funds were not being used for payroll, according to the department.

In addition to the prison sentence, U.S. District Judge Karen M. Williams ordered Hawkins to serve three years of supervised release and pay $5.3 million in restitution.

Lisa Smith has pleaded guilty for her role in the scheme. Charges against Rivera and Wessels remain pending, and they are presumed innocent until proven guilty, the U.S. Attorney's Office stated.