Baltimore Man Charged with Wire Fraud for Submitting False COVID-19 Relief Applications

Strategic Insights -

Ryan Dales, a 34-year-old resident of Baltimore, Maryland, has been charged with wire fraud for submitting false applications for unemployment insurance benefits, a Paycheck Protection Program loan, and an Economic Injury Disaster Loan under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. The investigation, which is ongoing, revealed that Dales had submitted fraudulent applications from a halfway house in Baltimore, where he was residing while completing his federal sentence for bank fraud conspiracy and aggravated identity theft. The search warrant executed at Dales' residence after his arrest recovered two firearms, including a ghost gun, and materials used to make fraudulent identification documents and access devices.

Key Takeaways:

  • Dales filed multiple false applications for COVID-19 relief funds, including unemployment insurance benefits, a Paycheck Protection Program loan, and an Economic Injury Disaster Loan.
  • Dales allegedly submitted falsified IRS documents to support his claims, including a gross profit of $144,112.35 for his non-existent company, KNW Group.
  • Dales was awarded approximately $25,570 in PUA benefits between August 2021 and September 2021, despite being incarcerated at the time.
  • In December 2020, Dales filed a fraudulent EIDL application for business "Ryan Dales," d/b/a "Dales Drop, Inc.," which was ultimately denied due to "unsatisfactory credit history."
  • Dales' 2017 fraud conviction made him ineligible for EIDL funding.
  • The investigation revealed that Dales had not earned sufficient wages in the previous year to be eligible for UI benefits.

Statistics:

  • Dales was paid approximately $25,570 in PUA benefits between August 2021 and September 2021.
  • Dales allegedly submitted false IRS documents to support his claims.
  • The CARES Act has provided emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic.
  • The District of Maryland COVID-19 Fraud Strike Force has investigated and prosecuted numerous cases of COVID-19 fraud, including those related to the CARES Act.

Sources:

  • United States Attorney for the District of Maryland, Erek L. Barron
  • Federal Bureau of Investigation, Baltimore Field Office
  • National Capital Region, U.S. Department of Labor, Office of Inspector General
  • United States Department of Justice, National Center for Disaster Fraud