A Stone Mountain gun shop and shooting range owner was found guilty of fraud in federal court last week after prosecutors said she took $1.2 million in Paycheck Protection Program funds loans and used some of it for personal use.
Denise Thomas filed “false and fraudulent information” about Pink Smoke Shooters Range & Gun Club Limited Co. and used some of the funds her business received to pay for a BMW, luxurious clothing and hotels stays, according to the indictment.
The Paycheck Protection Program was created as part of the CARES Act, which provided funds to businesses affected by the pandemic to ensure they could pay workers.
In the falsified documents, Thomas claimed her business was founded in 2015, paid more than $9 million annually in payroll, employed 61 and was solvent, with high volume cash flows.
In reality, her business was founded in June 2020 and the account from which Thomas submitted bank statements as part of the PPP loan application was opened around June 29, 2020. Thomas’ application was approved around March 16, 2021 and Pink Smoke received a $1.2 million PPP loan.
Shortly after the funds were deposited, Thomas began to transfer money to multiple other accounts. According to the indictment, Thomas later used more than $61,000 of the money for personal use, including buying a 2013 BMW X6 for $25,000, spending $11,921 at a luxury retailer, transferring $8,755 via Cash App transfer, paying for a $430 stay at the Hotel Intercontinental in Atlanta and two $470 stays at Meridien Hotels in Atlanta. She also spent $2,665 on items from Amazon and $1,211 on items from Walgreens.
According to the Georgia Secretary of State business search, Thomas has registered her business for the past three years.
In videos posted in November 2020 on her business’ Facebook page, Thomas said she was once a broadcast news reporter in Texas. She also said that she is a certified pistol and rifle instructor.
Her sentencing is scheduled for Aug. 27. She is currently in federal custody.
Some of the largest COVID-19 relief fraud cases in Georgia
Johns Creek resident Darrell Thomas pleaded guilty to orchestrating an $11 million Paycheck Protection Program fraud scheme. He was sentenced to 15 years in prison.
Marietta resident Carl Delano Torjagbo pleaded not guilty to fraudulently obtaining a $9.5 million Paycheck Protection Program loan. His case is pending.
Founding Stonecrest Mayor Jason Lary pleaded guilty to pocketing portions of the city’s $6.2 million in funding from the Coronavirus Aid Relief and Economic Security Act. He was sentenced to almost five years in prison.
Roswell businessperson Hunter VanPelt pleaded guilty to fraudulently obtaining more than $6 million in Paycheck Protection Program loans. She was sentenced to more than three years in prison.
Alpharetta resident Lakisha Swope pleaded guilty to fraudulently obtaining $3.6 million in Paycheck Protection Program loans. She was sentenced to almost four years in prison.
Former Fulton County Sheriff’s Office deputy Katrina Lawson was found guilty of stealing more than $3 million in Paycheck Protection Program and Economic Injury Disaster Loan funds. She is due to be sentenced in February.
“Love & Hip Hop: Atlanta” star Maurice Fayne pleaded guilty to using more than $2 million in Paycheck Protection Program funding to buy luxury jewelry and pay child support, in addition to Ponzi scheme charges. He was sentenced to more than 17 years in prison.
Financial advisor Paul Kwak pleaded guilty to fraudulently obtaining more than $2 million in Economic Injury Disaster Loan funds. He was sentenced to more than three years in prison.
Source: AJC research
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