NEW BERN, N.C. – A Robeson County man Phillip Collins, 47, stole from the Small Business Administration’s Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) by submitting false loan applications which resulted in the disbursement of $170,833 in loan proceeds. He pleaded guilty to conspiracy to commit wire fraud and faces a maximum term of 30 years in prison, and a $1,000,000 fine when sentenced later this year. He will also be ordered to pay a Forfeiture Money Judgment of $170,833.
“Although the government may have stopped doling out Covid money, our government continues to hand out billions in other loans, subsidies, and programs. This office will continue to hold accountable anyone who defrauds any of our taxpayer funded programs. Crime Doesn’t Pay! Cheaters. Never. Win.” said U.S. Attorney Ellis Boyle.
According to court documents and other information…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.