MPD Officer and a Maryland Accountant Plead Guilty to COVID Emergency Loan Fraud

Wednesday, April 24, 2024

Defendants Illegally Reaped Over $95,000 in EIDL and PPP Loans

            Owen M. Grigsby, 44, of Waldorf, Maryland, and Himmeh Kuawogai, 46, of Ellicott City, Maryland, pleaded guilty today in U.S. District Court in connection with filing false and misleading information in order to fraudulently obtain over $95,000.00 in Economic Injury Disaster Loans (EIDLs) and Paycheck Protection Program (PPP) loans. The announcement was made by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the FBI’s Washington Field Office, and Chief Pamela A. Smith of the Metropolitan Police Department.

            Grigsby is a patrol officer with the Metropolitan Police Department (MPD) who is currently on administrative leave with pay. Kuawogai is an accountant and owner of HAK Accounting Services. Both men both pleaded guilty to one count of conspiracy to commit wire fraud by engaging in a scheme to defraud and obtain money and property by means of materially false and fraudulent pretenses, representations, and promises, which carries a potential penalty of five years in prison. The Honorable Randolph D. Moss presided over the guilty pleas and scheduled sentencing for July 9, 2024.  

            According to court documents, Kuawogai helped Grigsby establish Owen Grigsby Associates (OAG) in Maryland in July 2020. At the time, Grigsby was employed by the MPD. Although Grigsby was required to report any outside business venture to MPD pursuant to MPD policies, Grigsby failed to do so. OGA allegedly had no legitimate purpose and was created only to obtain EIDL and PPP loans.

            In October 2020, Grigsby filed an EIDL application on behalf of OGA containing materially false statements to the Small Business Administration (SBA). Grigsby was approved for that loan and fraudulently obtained $53,600.00. In December 2021, Grigsby filed an application containing materially false statements on behalf of OGA to the SBA seeking to modify his original EIDL in the amount of $214,500.00. Grigsby was denied that loan modification. Grigsby applied for the EIDLs despite never intending to use loan funds for a legitimate business purpose.

            In April 2021, Grigsby submitted his first PPP loan application on behalf of OGA containing materially false statements to Harvest Small Business Finance, LLC (HSBF), an FDIC-insured financial institution. In April 2021, Grigsby submitted his second PPP loan application on behalf of OGA containing materially false statements to HSBF. As a result of Grigsby’s first fraudulent and misleading PPP loan application, HSBF approved Grigsby’s loan application for OGA for $20,833.00 causing HSBF to disburse $20,833.00 into OGA’s bank account. As a result of Grigsby’s second fraudulent and misleading PPP loan application, HSBF approved Grigsby’s “Second Draw” loan application causing HSBF to disburse $20,833.00 into OGA’s bank account.Grigsby applied for the two PPP loans despite never intending to use loan funds for a legitimate business purpose. In August 2021, Grigsby filed two PPP loan forgiveness applications containing materially false statements. As a result of these fraudulent loan applications, HSBF forgave OGA’s first and second PPP loans.

            For each fraudulent loan and forgiveness application Grigsby submitted on behalf of OGA, Kuawogai assisted Grigsby by providing him with amended and fake documents and explaining the loan application process to him via messaging applications, the phone, and email.

            This case was investigated by the FBI’s Washington Field Office, the Metropolitan Police Department, and the U.S. Attorney’s Office for the District of Columbia.

The case is being prosecuted by U.S. Attorney Rebecca G. Ross