Former Broward deputies convicted of PPP loan fraud

On October 23, a federal jury in Miami found former Broward Sheriff’s Office (BSO) deputies Tracy Wade, 51, and Carolyn Wade, 49, guilty of conspiracy and wire fraud in connection with defrauding the Small Business Administration (SBA) through the Paycheck Protection Program (PPP).

The Wades were convicted of charges including conspiracy to commit wire fraud, wire fraud, conspiracy to make false statements to the SBA, and making false statements to the SBA.

According to evidence presented during the trial, the Wades applied for PPP loans in 2021 using fabricated business details and falsified tax forms. Prosecutors argued that the couple sought loans for non-existent sole proprietorships, submitting fraudulent IRS tax forms to support their applications. They later requested forgiveness of these loans, misrepresenting to the SBA that the funds were spent on payroll expenses, although no legitimate business operations existed.

At the time of the offenses, Tracy and Carolyn Wade were active deputy sheriffs in BSO’s Department of Detention.

No sentencing date has been set. The couple faces up to 20 years in prison for each wire fraud-related conviction, 5 years for conspiracy to make false statements, and 2 years for each count of making false statements to the SBA. The final sentencing decision will consider the U.S. Sentencing Guidelines and other statutory factors.

The investigation was led by the FBI’s Miami Field Office, the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, and the Broward Sheriff’s Office. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, FBI Special Agent in Charge Jeffrey B. Veltri, and BSO Sheriff Gregory Tony jointly announced the conviction.

Assistant U.S. Attorneys David A. Snider and Adam Love prosecuted the case, with Assistant U.S. Attorney Darren Grove handling asset forfeiture.

A string of convictions

The recent convictions mark just two of several fraud cases within the department involving Paycheck Protection Program (PPP) loans. In October 2023, federal authorities charged a total of 17 BSO employees with fraudulently securing PPP loans, alleging they diverted approximately $500,000 in funds intended to support struggling businesses during the COVID-19 pandemic.

“All 17 defendants are charged with participating in various schemes to defraud the United States Small Business Administration by providing false information regarding their eligibility for financial assistance,” Lapointe said then. The fraud allegedly involved sworn deputies submitting falsified information to obtain loans that they then used for personal expenses rather than for payroll or business purposes.

Broward Sheriff Tony expressed his disappointment, saying, “I hate to see that, knowing some of the individuals and seeing the names on that list as being indicted; some of them were good officers. But you’re only as good as the last act and conduct that you execute.” He emphasized the importance of integrity within the force and urged BSO employees to report any signs of corruption or misconduct to preserve public trust in the department. Tony stated that he had also directed BSO’s corruption unit to investigate all 5,500 employees to ensure no other fraudulent activity went unnoticed.

Several of the deputies charged with PPP loan fraud have been convicted since then.