General · January 28, 2021

Didier Kindambu Pleads Guilty to $2.5M Coronavirus Fraud

 Didier K. Kindambu Pleads Guilty to $2.5 Million Coronavirus Fraud

ALEXANDRIA, VA (STL.News) A Leesburg man pleaded guilty today to fraudulently obtaining two loans for over $2.5 million under the Paycheck Protection Program (“PPP”).

“At a time when countless families and business owners nationwide are struggling to make ends meet during the ongoing pandemic, Didier Kindambu committed a multimillion-dollar bank fraud by misappropriating COVID-19 taxpayer relief funds to pay for his lavish lifestyle,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia.  “Together with our law enforcement partners, this Office will continue to prosecute and bring to justice those who seek to exploit essential pandemic recovery programs and profit from the misfortunes of others for personal gain.”

According to court documents, Didier K. Kindambu, 49, fraudulently obtained two PPP loans under a program instituted by the U.S. Congress to help businesses affected by the coronavirus pandemic continue to pay salary or wages to their employees. Kindambu carried out the scheme in connection with two businesses that he owns by creating fraudulent payroll documentation for each business, and then submitting that documentation in support of the PPP loan applications.  The fraudulent documentation represented that Kindambu’s businesses had dozens of employees with millions of dollars in payroll expenses, when in fact they had few, if any, employees.

In total, Kindambu fraudulently obtained approximately $2,501,753 in loan proceeds, and he then spent those funds, in part, on items unrelated to any legitimate PPP-related expense.  Those items included a Lexus automobile and Cessna aircraft; Kindambu’s personal taxes, the down-payment on a luxury residence in Leesburg, and his day-to-day living expenses; and various purchases of jewelry, clothing, accessories, and shoes.

Kindambu pleaded guilty to bank fraud and is scheduled to be sentenced on August 4, 2021.  He faces a maximum penalty of 30 years in prison.  Actual sentences for federal crimes are typically less than the maximum penalties.  A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA); and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG), made the announcement after U.S. District Judge Rossie D. Alston accepted the plea.

Assistant U.S. Attorney Matthew Burke is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-260.

SOURCE: USDOJ.Today