Ex-Baltimore Fiscal Chief Pleads Not Guilty To Fraud, Identity Theft Charges
BALTIMORE (WJZ) -- A former top administrator in the Baltimore Police Department pleaded not guilty Thursday to federal charges of wire fraud, money laundering, and aggravated identity theft.
Dana Hayes Jr., 37, made headlines in April after the Baltimore police fired him from his new position as the chief of fiscal services. Commissioner Michael Harrison said a background check failed to turn up a gun charge and that Hayes was a person of interest in the murder of his stepfather.
Talking to WJZ in April, Hayes denied any involvement in the homicide and said his record was expunged related to the gun charge.
A federal grand jury returned a six-count indictment last week alleging Hayes submitted fraudulent COVID-19 relief loan applications and stole the identity of a tax preparer, the U.S. Department of Justice said Thursday.
Prosecutors allege that between March 2020 and October 2021, Hayes submitted an Economic Injury Disaster Relief loan application and several Paycheck Protection Plan loan applications to the Small Business Administration and to two banks.
Hayes allegedly submitted the EIDL loan to the Small Business Administration in March 2020, and two PPP loans with two banks in June 2020 and January 2021 on behalf of a recently revived company, D&L Investment Properties.
The indictment alleges Hayes made false statements about his probation status, number of employees, payroll expenses and company expenses in all three applications.
Prosecutors allege that once loans were approved and funds were deposited, Hayes quickly transferred the money from the company bank account to his personal savings account
Finally, the indictment alleges Hayes submitted a fraudulent Form 941 - a tax form - using the name of and Preparer Tax Identification number of a person he hired to prepare his tax returns without their knowledge or consent in the PPP loan applications.
A judge on Thursday released Hays as he awaits trial. Hays told WJZ reporter Annie Rose Ramos outside the courthouse he is "feeling good" about the case.
If convicted, Hayes faces a maximum sentence of 20 years in federal prison for wire fraud, 10 years for money laundering and a mandatory two years for aggravated identity to theft.