Newark Reporter

A former bank branch manager has been sentenced to 65 months in prison for orchestrating a conspiracy to secure fraudulent Paycheck Protection Program (PPP) loans amounting to approximately $5 million. This was announced by U.S. Attorney Philip R. Sellinger.

Tommy Hawkins, 61, from Philadelphia, pleaded guilty to one count of bank fraud conspiracy before U.S. District Judge Karen M. Williams, who imposed the sentence on October 18, 2024, in Camden federal court. A codefendant, Sieff Robert Sargeant, 44, from Island Park, New York, also pleaded guilty to one count of money laundering and received a sentence of six months in prison and six months of home confinement earlier this month.

The CARES Act was enacted in March 2020 as a response to the economic effects of the COVID-19 pandemic and included the PPP to provide forgivable loans for small businesses' job retention and certain expenses. Hawkins used his position at a Conshohocken, Pennsylvania branch of a national bank accepting PPP applications during 2020 and early 2021 to facilitate fraudulent loan applications.

Hawkins collaborated with Eric Rivera, Lisa Smith, and others to recruit individuals with minimal business operations to apply for these loans through his branch using falsified information regarding employees and payroll expenses. These misleading applications led to at least 38 approved PPP loans totaling around $5 million.

In return for aiding these fraudulent activities, Hawkins received incentive compensation from the bank for opening accounts linked to these false applications and agreed upon receiving $5,000 per successful loan from Rivera and Smith.

One instance involved Sargeant's business obtaining a PPP loan via Hawkins’ branch based on falsified documents. Sargeant subsequently hired James Wessels to create fake payroll checks that were cashed by an acquaintance who returned most funds back to Sargeant under the pretense they were spent on non-payroll expenses.

Besides his prison term, Hawkins is subject to three years of supervised release and must pay restitution totaling $5.3 million.

Lisa Smith has admitted guilt concerning her involvement in the scheme while charges against Rivera and Wessels are pending; both remain presumed innocent unless proven otherwise.

U.S. Attorney Sellinger acknowledged contributions from several investigative agencies including special agents from FDIC - Office of Inspector General’s New York Region directed by Special Agent-in-Charge Patricia Tarasca; FBI’s South Jersey Resident Agency led by Special Agent in Charge Wayne A. Jacobs; SSA’s Office of Inspector General’s Boston-New York Field Division under Acting Special Agent in Charge Corwin Rattler; alongside DOL’s Office of Inspector General’s New York Region managed by Special Agent in Charge Jonathan Mellone.

Assistant U.S. Attorney Daniel A. Friedman along with Attorney-in-Charge Jason M. Richardson represented the government throughout this case within Camden's Criminal Division office.