FORT LAUDERDALE — A guy from Lake Worth Beach is facing charges after he and his brother were accused of getting millions of dollars in government loans through fraud. The loans were meant to help small businesses get through shutdowns caused by the COVID-19 pandemic.
Investigators say that Patrick Charles, 41, and his brother Carl Henry Charles, 43, both of Miramar, got about $2.5 million in loans and advances from the Economic Injury Disaster Loan, or EIDL, Program of the Small Business Administration. It was made in March 2020 as part of the CARES Act, which stands for Coronavirus, Aid, Relief, and Economic Security.
The brothers went to court in Fort Lauderdale on Friday to see U.S. Magistrate Judge Panayotta Augustin-Birch. Each got a $250,000 bond and was told to give up his or her passport.
The court let each suspect have a temporary lawyer and set April 28 as the date for the trial hearing. On Monday, U.S. District Judge Beth Bloom set the hearing date for May 22 in Miami.
Patrick Charles is being represented by Michael Weinstein, a lawyer in Fort Lauderdale. He said on Monday that he is still looking over the charge and waiting for the discovery papers.
“We’ll look into the government’s case and defend him based on what we find,” he said.
According to an indictment that was made public on Friday, the Charles brothers asked the Small Business Administration for almost $5 million between March 2020 and December 2021 for businesses that didn’t exist before the pandemic and didn’t have any money or other business activity.
The indictment says that Patrick and Carl Henry Charles and other people who aren’t named started bank accounts and told others to do the same so they could get EIDL advances and loans.
Carl Henry Charles and other people who haven’t been named are said to have taken people’s personal information and used it to fill out fake applications. A statement from the U.S. Attorney’s Office says that the brothers then used the money to make themselves and others rich.
Both are accused of wire theft on more than one count. According to the U.S. Attorney’s Office, Patrick Charles could spend up to 60 years in jail if he is found guilty, and Carl Henry could spend up to 80 years.
