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Law360 (February 16, 2021, 5:07 PM EST ) A San Francisco woman stole the identity of licensed attorneys and appeared in court on behalf of people facing serious criminal charges, while also submitting fake documents to take advantage of the Paycheck Protection Program set up in the wake of the pandemic, federal prosecutors said Friday.
Miranda Devlin, 37, impersonated multiple California attorneys by using their names and license numbers to act as a defense attorney on behalf of two people facing serious criminal charges in Marin County, according to a U.S. Department of Justice statement.
When she was retained by the two defendants, Devlin first appeared in court as Miranda Martin, but when she was questioned, she pivoted to use the name of another attorney who shared her first name, Miranda Petrillo, prosecutors said. Both Miranda Martin and Miranda Petrillo are licensed attorneys in California, the DOJ said.
Devlin was arrested on charges of impersonating an attorney after a court appearance on Nov. 26, 2019, according to the release.
It was in the course of investigating Devlin's alleged attorney impersonations that investigators found out she had recently defrauded the Small Business Administration by submitting a loan application to the Paycheck Protection Program in the name of a shell business, according to prosecutors.
The PPP came out of the CARES Act, which was enacted in March and authorized forgivable loans to small businesses to promote job retention and cover certain other expenses during the coronavirus pandemic. A PPP loan must be used for payroll costs, interest on mortgages, rent and utilities, according to the statement, and applications for such loans must meet certain requirements and be made under oath.
The complaint, which remains under seal, alleges that Devlin submitted an application for a PPP loan in the amount of $32,700 on behalf of Common Nucleus of Cancer LLC, an entity that she created, according to prosecutors. In the application, the DOJ said Devlin made multiple false statements and provided fake IRS documents.
Devlin again used the name Miranda Martin and fraudulently said that she managed CNC, that she owned 100% of the entity, that CNC had two employees and a monthly payroll of $13,115 and that it had paid employee salary and payroll taxes throughout 2019, according to the DOJ.
But once the loan was funded, prosecutors said Devlin used the money to buy stock and for personal expenses, including purchases from Amazon, Bloomingdale's and Tiffany & Co.
"PPP funds provide a critically important safety net for legitimate businesses suffering real losses," U.S. Attorney David L. Anderson said in a statement Friday. "Anyone considering PPP fraud should know law enforcement is watching, and federal prosecution can follow."
Devlin is charged with making false statements and mail fraud, according to the statement, and faces up to 50 years in prison if convicted on both charges.
She made an initial appearance in federal court Friday and was released on a $500,000 bond, according to court records.
"By allegedly defrauding the Paycheck Protection Program, a program designed to assist our local businesses as they navigate stressful, uncertain times, Miranda Devlin violated the trust of her community," FBI San Francisco Special Agent in Charge Craig Fair said in a statement Friday. "By allegedly exploiting this program and further straining resources designated for pandemic relief, she cheated legitimate, hardworking business owners and their employees."
Contact information for Devlin was not immediately available Tuesday.
Devlin isn't the only one to be accused of taking advantage of the PPP loan program by fraudulent means.
A New Jersey attorney was arrested in September on charges of submitting bogus applications to lenders on behalf of purportedly education-related entities in order to obtain about $9 million in loans. That same month Rhode Island federal prosecutors indicted a Massachusetts man who allegedly faked his own death and spent more than a month on the lam after being charged with fraudulently applying for nearly $544,000.
NFL player Josh Bellamy and a star of the VH1 series "Love & Hip Hop: Miami" have also recently been accused of defrauding the PPP program. Meanwhile, a North Carolina insurance agency executive was accused of submitting bogus applications on behalf of a trio of "Game of Thrones"-themed entities called White Walker LLC, Khaleesi LLC and The Night's Watch LLC, which appear to be named for the books and TV series' ice zombie-like creatures, dragon-wielding queen and the garrison of a giant ice wall, respectively.
And last week, a Florida man pled guilty to fraudulently securing nearly $4 million in PPP loans to buy a Lamborghini.
FBI Director Christopher Wray recently urged banks during an American Bankers Association conference to continue reaching out to the FBI as COVID-19-related financial crimes ramp up.
The government is represented by Elise LaPunzina of the U.S. Attorney's Office for the Northern District of California.
Counsel information for Devlin was not immediately available.
The case is U.S. v. Miranda Devlin, case number 3:21-mj-70212, in the U.S. District Court for the Northern District of California.
--Additional reporting by Stephen Cooper, Bill Wichert, Chris Villani, Nathan Hale, Stewart Bishop, Reenat Sinay and Al Barbarino. Editing by Orlando Lorenzo.
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