Tag Archives: PPP loan

Omar Smith Appears Before Federal Judge In Palm Beach, Pleads Not Guilty And Waives Indictment

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Omar Smith

Omar Smith, Dale Holness’ campaign guru, appeared before Federal Judge William Matthewman on Thursday morning to plead not guilty to charges related to fraudulently obtained Payroll Protection Program (PPP) loan fraud. On Monday, Federal prosecutors charged Smith with felony conspiracy to commit bank fraud and wire fraud to obtain a $215,500 COVID-19 relief loan. If convicted, Omar Smith could face thirty years in prison and up to $1,000,000 in fines.

Judge Matthewman stated bond was $100,000 for Smith.

As REDBROWARD first reported on Tuesday, Smith’s charging documents included a waiver of indictment. On Thursday, “The Court explained waiver of indictment to the Defendant, form executed, and the Court found that Defendant knowingly and voluntarily waived his right to indictment.Defendant WAIVED indictment on the record and agrees to proceed by way of Information. The Court found Defendant’s waiver knowing and voluntary. The Defendant waived formal reading, entered a plea of Not Guilty.” The waiver could be a sign Smith intends to cooperate with Federal authorities.

Smith is represented by Nicole Hamil-Scott, a Coral Springs attorney who specializes in family law matters.

Feds Charge Dale Holness’ Campaign Guru With Conspiracy To Commit Bank Fraud & Wire Fraud To Fraudulently Obtain PPP Loan

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Omar Smith

Federal prosecutors charged Omar Miguel Smith with conspiracy to commit bank fraud and wire fraud to fraudulently obtain a PPP Covid-19 relief loan on Monday. Smith is former Broward County Commissioner Dale Holness’ campaign guru. In 2020, REDBROWARD was first to expose Smith’s controversial $300,000 PPP loan for his marketing company A Star For I.

According to the U.S. Attorney’s Office for the Southern District of Florida, on his application for a $212,500 forgivable, federally-guaranteed Paycheck Protection Program (PPP) loan on behalf of A Star For I, Inc., “Smith claimed in the on-line loan application, and through supporting fraudulent payroll tax forms, that his company employed 30 people and spent an average of $85,000 each month on payroll. In fact, A Star For I, Inc had zero employees and no payroll expenses.” A Utah bank approved A Star For I, Inc.’s PPP loan application “based on the lies and wired $212,500 to the company’s bank account in Florida.”

Prosecutors alleged that after the money was deposited in July 2020, Omar Smith “spent the next few months creating a paper trail to make it appear as if A Star For I, Inc. in fact had employees and was spending the PPP money on legitimate, approved expenses.” According to the information, Smith issued checks from the company bank account made out to others who did little or no work for his company.

The U.S. Attorney charged Omar Smith with conspiring to commit bank fraud and wire fraud. If convicted, Smith faces up to 30 years in prison and a fine of up to $1 million.

Last month, Damara Holness, daughter of Dale Holness, started a lengthy prison sentence in Mariana, Florida for PPP loan fraud. Like Smith, Damara Holness was accused of making up employees and writing checks to accomplices to hide her fraud. According to authorities, Holness never returned more than $180,000 in cash.

REDBROWARD has documented Omar Smith’s extensive role in Dale Holness’ political campaigns and the campaign of Holness’ political allies. REDBROWARD was first to expose Omar Smith’s role in creating shady political action committees supporting Holness and his allies. The committees include the Federal political committee known as “People of Principle.”