Is LAKE PARK SALES, INC. a Scam?

Originally posted on March 9, 2022 @ 4:22 pm

 

PPP Loan #5174697103
LAKE PARK SALES, INC. is a Corporation located at PLACENTIA, CA with 83 employees. During round 1 of the paycheck protection program, LAKE PARK SALES, INC. requested a PPP loan for 461313 USD. They were approved on 04/13/2020 by the SBA for an amount of 461313 USD. The loan was facilitated by Farmers & Merchants Bank of Long Beach, LONG BEACH, CA. Of the approved amount, LAKE PARK SALES, INC. has received an amount of 461313 USD for payroll proceeds.
 PPP Loan details for LAKE PARK SALES, INC.
Loan Amount 461313 USD
Current Approved Amount 461313 USD
Loan Tenure 24 months
Loan Approved on 05-08-2021
Area Code 92870-7126
SBA Code 920
NAICS Code 531311
Lender Bank Farmers & Merchants Bank of Long Beach
Lender Bank City LONG BEACH
Lender Bank State CA
 Demographic details for LAKE PARK SALES, INC.
Race Unanswered
Ethnicity Unknown/NotStated
Gender Unanswered
Veteran Unanswered
Non Profit
Business Age Existing or more than 2 years old
Jobs Reported 83

How LAKE PARK SALES, INC. Claims To Have Used Their PPP Funds of 461313 USD

As we have discussed earlier, LAKE PARK SALES, INC. received a substantial amount of money through the SBA program. But have they used it correctly? Let’s analyze.

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1LAKE PARK SALES, INC. claims to have spent 461313 USD to pay salaries of 83 employees.

 

2LAKE PARK SALES, INC. claims to have have been honest, ethical and deserving of this PPP Loan (5174697103) of 461313 USD.

 

3LAKE PARK SALES, INC. claims to not have misused the PPP Loan in any ways.

 

These amounts were reported to the SBA by the company. Often, however, whistleblowers & employees reveal that their employers have abused their funds. If you think LAKE PARK SALES, INC. has done something nefarious, then report them here using the review box at the bottom of the page.


What Constitutes A PPP Loan Scam? 

The primary goal of PPP loans was to help businesses survive the pandemic and ensure that people don’t lose their employment. Businesses who took out these loans could spend the borrowed sum on:

    • Salaries, bonuses, commissions, wages (maximum $100,000 per annum per employee)
    • Insurance premiums
    • Employee allowances (sick leaves, medical, parental, and vacation pay)
    • Operational expenditure
    • Utility payments
    • Mortgage interest payments

Federal authorities are aggressively targeting individuals and companies for PPP loan fraud. Launched in March 2020 in response to the economic uncertainty that was triggered by the novel coronavirus (COVID-19) pandemic, the PPP made hundreds of millions of dollars in federal funding available to businesses struggling as a result of the pandemic. Loans issued under the PPP carry a 1% interest rate, but the loans are completely forgivable if certain conditions are met.

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The low-cost (and potentially free) funds offered under the PPP have proven to be attractive not only to struggling businesses, but also to larger companies and scam artists. This has led to worry of widespread fraud (and a few highly-publicized cases of fraudulent PPP loan applications), and it has forced numerous federal agencies to turn their attention to combatting PPP loan fraud.

Penalties For Abusing Or Wasting The PPP Funds:

When a person is charged with PPP loan scam charges, they can face multiple civil and criminal penalties. Even a single PPP loan fraud case might involve multiple criminal laws.

You can face a penalty of up to 20 years behind bars.
  • The first charge would be wire fraud. It invokes 18 USC Sec. 1343 and involves the use of a phone or internet to scam another party by using false statements.
  • Bank fraud charges might also be filed against you. It invokes 18 USC Sec. 1344 and involves making false statements to a financial institution such as a bank. The penalty for this charge goes up to 30 years behind bars.
  • A PPP loan fraud also includes making false statements to a financial institution, a federal crime. It invokes 18 USC Sec. 1014 and its violation leads to a jail 14 of up to 30 years.
  • Finally, when you commit a PPP loan scam, you violate 18 USC Sec. 1349, conspiracy to commit fraud. It is a criminal offense when someone colludes with others in violating or attempting to violate federal laws whether they obtained money or not.
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The authorities have been rather vigilant in finding people who committed PPP loan frauds.

The above are just two instances of people getting caught by the authorities for this scam. Here’s another:


Frequently Asked Questions About PPP Loan Scam

Did LAKE PARK SALES, INC. get a PPP loan?

Yes. LAKE PARK SALES, INC. applied and was granted a PPP loan

How much PPP Loan did LAKE PARK SALES, INC. receive?

461313 USD

Where is LAKE PARK SALES, INC. located?

LAKE PARK SALES, INC. is located in PLACENTIA,CA

How much did LAKE PARK SALES, INC.'s PPP loan went towards paying salaries?

As per LAKE PARK SALES, INC., 461313 USD went towards payroll proceeds

Which bank financed LAKE PARK SALES, INC.'s PPP Loan?

Farmers & Merchants Bank of Long Beach in LONG BEACH,CA financed LAKE PARK SALES, INC.’s PPP Loan

What is the term for LAKE PARK SALES, INC.'s PPP loan?

24 months

How many employees were reported by LAKE PARK SALES, INC. in their PPP loan application?

83

How much of LAKE PARK SALES, INC.'s PPP loan was forgiven?

465862.94 USD was forgiven on 04/19/2021


Footnotes and Citations

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All information displayed on this page is publicly available information under PPP loan guidelines, in compliance with 5 U.S.C. § 552 (Freedom of Information Act) and 5 U.S.C. § 552a (the Privacy Act) and is published unmodified, as provided by the SBA. IsItaScam.com does not modify the data and makes no claims regarding its accuracy, nor will entertain any request to remove any entry.

The inclusion of a person or entity in the IIAS Database is not intended to suggest or imply that they have engaged in illegal or improper conduct related to PPP Loan (scam). IIAS intends to offer a platform where suspicious activities related to PPP loan can be shared and discussed in a secure environment. Please contact us if you find an error in the database.


What LAKE PARK SALES, INC.’s Employees and Consumers can do to report potential PPP Scam?

There is no record of LAKE PARK SALES, INC. committing any sort of PPP Scam reported anywhere. However, that can change quickly, and this page allows employees, citizens and consumers to share information on LAKE PARK SALES, INC. they are privy to, and expose any/all wrongdoings.


4.8 Total Score
User Rating for LAKE PARK SALES, INC.

LAKE PARK SALES, INC. took out a PPP loan worth $461313 for Payroll Processing for it's 83 employees. As tax-payers, we need to hold businesses accountable and ask serious questions. Our rating on LAKE PARK SALES, INC. is based on multiple factors, including publicly available information, reviews and user notifications.

Trust
5.1
Accountability
5.0
Transparency
4.7
Risk
6.0
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