Miramar Man Sentenced to Three Years in Prison for Paycheck Protection Loan Scam

Stanley Michel, of Miramar, was sentenced to a 36-month federal prison term to be followed by 60 months of supervised release for his role in defrauding the CARES Act pandemic relief Paycheck Protection Program (PPP) through fraudulent loan applications. He was also ordered to pay $288, 698 in restitution.

Michel, through his company, Royal Music Group (RMG), submitted fraudulent documents in support of several loan applications, totaling approximately $1.1 million, to financial institutions under the CARES Act PPP loan program. Inconsistencies were noted throughout the applications, such as falsely generated payroll documents to alleged employees, misrepresentation in RMG’s income amounts, and altered checks and bank statements. The investigation revealed that Michel applied for several PPP loans using the names, social security numbers and personal identifying information of four individuals without their knowledge or consent. Furthermore, nearly all unlawfully obtained funds were used by Michel for his personal living expenses and not to fund payroll expenses as intended by the pandemic relief program.

The case was investigated by the OFR, DHS/HSI-Miami, and FDIC OIG. The U.S. Attorney’s Office for the Southern District of Florida prosecuted the case. The Miramar Police Department secured Michel’s arrest.