A ‘career criminal’ was in jail for defrauding the government. Then he conned inmates out of $17,000, feds say

A ‘career criminal’ was in jail for defrauding the government. Then he conned inmates out of $17,000, feds say

But while serving his house arrest and wearing an ankle monitor, he managed to commit four bank robberies in Massachusetts in 2011 brandishing “what appeared to be a firearm (later determined to be a BB gun) and forced bank customers and employees to lie down on the ground,” prosecutors said

Even while he was in jail awaiting sentencing for fraudulently seeking $4.7 million in Paycheck Protection Program funds, Michael Moller couldn’t help but carry out one more con, prosecutors said.

Moller, 42, persuaded two of his fellow inmates at a Rhode Island jail that he could help them with their criminal and immigration cases, according to court documents. He knew a lawyer who could help.

The FBI caught on, and Moller agreed to admit guilt to avoid further fraud charges. In doing so, he allowed the court to consider the crime in his sentencing for the original fraud charge.

“Moller is simply incapable of stopping himself from defrauding others,” federal prosecutors said in the sentencing memorandum. “During a period in which one would imagine that Moller would be on his best behavior in an effort to convince the Court that he was remorseful for his prior conduct, he did the exact opposite by orchestrating yet another scheme to defraud people with whom he came in contact.”

Thomas G. Briody, Moller’s lawyer, said in a statement to to The Washington Post that his client “accepted responsibility” for his offenses.

His case is the latest example of the government cracking down on abuse of the PPP, a federal program meant to relieve financial stresses for employers during the pandemic that’s run by the Small Business Administration. Prosecutors have charged hundreds of people with abusing the program.

In May, a Southern California businessman was arrested and charged with submitting applications with stolen or counterfeit information that earned him $5 million in aid. He also laundered the funds, prosecutors said, and used some of the money to buy three luxury cars. Earlier this month, a Massachusetts man who faked his own suicide to evade arrest for attempting to scam the government out of $543,000 in PPP loans was sentenced to four years in federal prison.

Moller, who had pleaded guilty in for the PPP fraud, was taken to a detention facility in Central Falls, R.I., as he awaited his sentencing hearing.

He began his lawyer scam in June, prosecutors said. Over the span of two months, Moller persuaded two other inmates that they could get out of jail – they just needed to pay for it. One of the men had his wife deliver $5,000 in cash to Moller’s girlfriend. The other sent his friend to deliver about $12,000, court documents said.

“One of the victims reported that Moller actually told him to pack his belongings because the attorney Moller had supposedly hired had arranged for bail to be posted,” prosecutors said.

Instead of using the cash to bail out the two men, Moller’s girlfriend allegedly used the funds for gambling, marijuana and Moller’s commissary account, investigators learned. The FBI built its case by listening in on Moller’s phone calls after being tipped off by the inmates.

Moller has a history of fraud and exaggerating the truth, prosecutors said. An Army veteran, the Middletown, R.I., man claimed he had post-traumatic stress disorder from his time in a “covert ops” unit, court documents said. He asserted that he hunted down terrorists, was stabbed in the back during combat and killed enemy fighters.

Investigators quickly learned none of those facts were true. Military records showed he enlisted in 1997 and was honorably discharged three years later. He spent a few months in Kuwait but never saw active combat, according to court documents. He was never injured, prosecutors said.

He has also been convicted twice in federal court, including once for tax fraud, according to prosecutors. In the tax fraud case, he was sentenced to six months of home confinement.

He has been convicted nine times in Massachusetts and Rhode Island for lying to get money and forcibly stealing money

It was during that time on supervised release that Moller embarked on the extensive PPP fraud scheme, prosecutors said. From , the Rhode Island man allegedly submitted 11 fraudulent loan applications totaling over $4.7 million. In the end, he received $699,251.

Evidence shows that Moller used his and his father’s names for the applications, according to prosecutors. He also used his girlfriend’s son’s and brother’s names without their knowledge or consent.

He submitted fabricated tax returns and received $212,100 for a fake company called “Top Notch Tile” that payday loans South Dakota supposedly employed 10 people; he received over $172,000 for a business called “TNT Tile” under his father’s name; and he got another $200,000 for a faux company he claimed belonged to his girlfriend’s brother called “A Top Notch Remodel,” prosecutors said.

Moller also unsuccessfully applied to eight different banks using his girlfriend’s 21-year-old son’s personal information. The applications ranged from almost $300,000 to over $734,000, court documents show.

Moller spent most of the money on “personal expenses including trips to Las Vegas and New Hampshire, numerous visits to local casinos, the purchase of a Camaro automobile, the reing,” court documents said.

Federal prosecutors called the scheme “appalling” and said it took advantage of a country “reeling from the covid-19 pandemic and the shutdown of businesses nationwide.”

“He saw the economic emergency created by the pandemic simply as an opportunity to make himself rich by taking for himself what was meant for those in need,” prosecutors said.

A federal judge sentenced Moller to 82 months and one day, followed by three years of supervised release. He is also ordered to pay almost $600,000 in restitution.

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