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August 2
1935 - Newhall deputy Archie Carter sentenced to 1 year in jail for contributing to the delinquency of a minor after his wife fatally shot his 20-year-old mistress (the age of majority was 21). [story]
Archie Carter


Hassan Kanyike, 29, of Santa Clarita, pleaded guilty Monday to perpetrating a scheme to fraudulently obtain approximately $1.8 million in COVID-19 relief guaranteed by the Small Business Administration through the Economic Injury Disaster Loan program and the Paycheck Protection Program.

According to federal court documents, Kanyike admitted that he submitted six fraudulent PPP loan applications and two fraudulent EIDL applications. The applications sought funds to purportedly pay the salaries of employees whom he claimed worked for two of his businesses. Kanyike successfully obtained approximately $1 million through four PPP loans, and another $300,000 through two EIDL loans.

In support of the fraudulent PPP loan applications, Kanyike submitted fake federal tax filings and payroll reports. For example, in one loan application, Kanyike falsely claimed the business had 26 employees and an average monthly payroll of $168,000, and he submitted a fabricated IRS tax form claiming Falcon Motors had paid $2,022,300 in payroll in 2019.

But Kanyike admitted during his plea that the company had substantially fewer employees and substantially lower payroll. Kanyike further admitted that he obtained additional Employer Identification Numbers from the IRS in April and May 2020, so that he could apply for multiple loans for the same used-car business. Kanyike then used a substantial portion of the PPP loan proceeds for his own personal benefit.

Kanyike was arrested in December 2020 at Los Angeles International Airport just before he was about to board a flight to Dubai. At the time of his arrest, Kanyike had transferred approximately $762,000 to Uganda, his country of citizenship, from one of the business accounts that had received the loan proceeds, in violation of the terms of the PPP and EIDL program.

Kanyike pleaded guilty to one count of wire fraud before United States District Judge Virginia A. Phillips. He is scheduled to be sentenced on August 23 and faces a maximum penalty of 20 years in prison. As part of his guilty plea, Kanyike is required to pay approximately $1.3 million in restitution.

Homeland Security Investigations and Treasury Inspector General for Tax Administration investigated the case.

Assistant Chief William Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Richard E. Robinson of the U.S. Attorney’s Office for the Central District of California’s Major Fraud Section are prosecuting the case. The case was previously prosecuted by former Trial Attorney Benjamin Saltzman of the Fraud Section.

RELATED: Raymond Magana of Santa Clarita Pleads Guilty to Fraud After Receiving $1M in PPP Loans

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP, and $10 billion in low-interest loans to small businesses through the EIDL program.

In April 2020, Congress authorized more than $300 billion in additional PPP funding and $10 billion in additional EIDL funding, and in December 2020, Congress authorized another $284 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as the continuation of health care benefits, rent, utilities, and fixed-debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.

The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP and EIDL funds, as well as numerous real-estate properties and luxury items purchased with such proceeds.

More information can be found at https://www.justice.gov/criminal-fraud/cares-act-fraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form.

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SCV NewsBreak
LOCAL NEWS HEADLINES
Monday, Aug 2, 2021
Monday COVID-19 Roundup: Henry Mayo Officials Report 153rd Death; Urge Those Eligible to Get Vaccinated
Henry Mayo Newhall Hospital reported an additional death on Monday, bringing the total of COVID-19 related deaths to 153, hospital spokesman Patrick Moody said.
Monday, Aug 2, 2021
Hahn Announces Plan to Propose Vaccine Mandate for L.A. County Employees
Los Angeles County Supervisor Janice Hahn announced Saturday morning that she’s planning to introduce a motion requiring all county employees “to get the vaccine or face weekly COVID testing.”
Friday, Jul 30, 2021
Friday COVID-19 Roundup: SCV Cases Total 29,884; L.A. County Continues Efforts Vaccinating Homeless
The Los Angeles County Department of Public Health confirmed Friday five new deaths and 3,606 new cases of COVID-19 countywide, with 29,884 total cases in the Santa Clarita Valley.
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Latest Additions to SCVNews.com
Henry Mayo Newhall Hospital reported an additional death on Monday, bringing the total of COVID-19 related deaths to 153, hospital spokesman Patrick Moody said.
Monday COVID-19 Roundup: Henry Mayo Officials Report 153rd Death; Urge Those Eligible to Get Vaccinated
The Santa Clarita Public Library is excited to announce the return of the Summer Book Bag Sale!
Friends of Santa Clarita Library Hosting Summer Book Bag Sale Once Again
Rancho Camulos Museum has launched a new visitor experience at the Rancho Camulos National Historic Landmark, "Last Sundays at the Landmark."
Rancho Camulos Launches ‘Last Sundays at the Landmark’
The city of Santa Clarita’s Film Office released the 11 productions currently filming in the Santa Clarita Valley for the week of Monday, Aug. 2 - Sunday, Aug. 8, 2021:
Filming This Week in SCV: ‘NCIS,’ ‘Leviathan,’ ‘MTV Cribs International,’ 8 More Productions
Registration Now Open for River Rally Volunteers
Registration Now Open for River Rally Volunteers
Mission Valley Bancorp announced Monday a net income of $1.6 million, or $0.48 per diluted share, for the second quarter of 2021, compared to net income of $398 thousand, or $0.12 per diluted share, for the second quarter of 2020.
Mission Valley Bank Releases 2Q Earnings
Saugus High School graduate Abbey Weitzeil anchored Team USA to a silver medal in the women’s 4×100 medley relay in her final swim of the Tokyo Olympics on Sunday.
Saugus High Alumna Abbey Weitzeil Anchors Relay Team to Silver
Santa Clarita is known throughout the state and the nation as a beautiful, safe community.
Miranda: Enjoy All that Santa Clarita Is Offering This Summer
The Governing Board of the William S. Hart Union High School District will hold its Regular Meeting Wednesday, Aug. 4, beginning with a closed session at 6:00 p.m., followed immediately with open session at 7:00 p.m.
Hart District Returning to In-Person Meetings; Public May Now Attend
Do you believe in magic? Then join The MAIN, located at 24266 Main Street in Newhall, for “Enchanted: An Evening of Magic” on Friday, Aug. 20, at 8:00 p.m.
Tickets Now Available for ‘Enchanted: An Evening of Magic’ at The MAIN
Majestic Princess returned to Seattle on Sunday, concluding its sailing to Alaska and marking the first successful United States voyage for Princess Cruises following the extended pause in operations.
Princess Cruises Concludes First Successful Voyage Following Operations Pause
Los Angeles County Supervisor Janice Hahn announced Saturday morning that she’s planning to introduce a motion requiring all county employees “to get the vaccine or face weekly COVID testing.”
Hahn Announces Plan to Propose Vaccine Mandate for L.A. County Employees
1935 - Newhall deputy Archie Carter sentenced to 1 year in jail for contributing to the delinquency of a minor after his wife fatally shot his 20-year-old mistress (the age of majority was 21). [story]
Archie Carter
1963 - Leona Cox Community School breaks ground in Canyon Country [story]
Leona Cox
1939 - Recording artist, music promoter and longtime Sand Canyon resident Cliffie Stone marries singer Dorothy Darling in Hollywood [story]
Cliffie Stone
The Los Angeles County Department of Public Health confirmed Friday five new deaths and 3,606 new cases of COVID-19 countywide, with 29,884 total cases in the Santa Clarita Valley.
Friday COVID-19 Roundup: SCV Cases Total 29,884; L.A. County Continues Efforts Vaccinating Homeless
SACRAMENTO (CN) — California voters are anxious about the intensifying drought and dwindling water supply and nearly 80% believe climate change is fueling the fast start to the wildfire season, according to a statewide poll released Wednesday.
New Poll Finds Water Shortages, Drought are Californians’ Biggest Environmental Concerns
With a heavy heart, Gibbon Conservation Center announced that Chris Roderick, long-time GCC Board Member, passed away on July 24, 2021.
Longtime Gibbon Center Board Member Chris Roderick Dies at 74
College of the Canyons has received a $74,707 Campus as a Living Lab (CALL) grant from the National Science Foundation (NSF) to provide opportunities for underrepresented community college students to engage in undergraduate research focusing on native bees.
COC Awarded Nearly $75K Grant for Bee Research
The city of Santa Clarita is excited to host “Moments of Zen” as the latest art exhibition featured in City Hall’s First Floor Gallery, located at 23920 Valencia Boulevard.
Community Encouraged to Explore City Hall’s ‘Moments of Zen’ Art Exhibit
Local nonprofit Fostering Youth Independence (FYI) held its fifth annual Back to School Bash, where students received backpacks and school supplies for the upcoming semester, and for the first time also featured a career fair featuring eleven speakers from the FYI community who explained their jobs and career qualifications.
SCV Nonprofit Holds Annual Back to School Bash for Foster Youth
The Los Angeles County Department of Public Health continues cautioning residents who are planning to visit several Los Angeles County beaches, including beaches near Hyperion, to be careful of swimming, surfing, and playing in ocean waters around discharging storm drains, creeks, and rivers.
Public Health Extends Water Use Warning for L.A. County Beaches
Los Angeles County is holding a free, drive-thru Household Hazardous Waste & E-Waste Recycling Collection on Saturday, July 31, from 9:00 a.m. - 3:00 p.m., at the Via Princessa Metrolink Station.
July 31: Free Drive-Thru Household Hazardous, E-Waste Roundup
SACRAMENTO — State Superintendent of Public Instruction Tony Thurmond hosted a webinar on Thursday for local educational agencies (LEAs) and education partners to lead a discussion on how schools can use new state and federal funding to invest in strategies that will facilitate a safe and impactful return to in-person learning.
Health, Education Experts Address Ways to Invest New Funding into Safe In-Person Learning
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