Foreign National Found Guilty in Defrauding American Taxpayers Out of Millions in Covid-Era Emergency Aid

WASHINGTON - Jose "Joe" Biaou, 41, a citizen of Benin and a resident of the District of Columbia, was found guilty yesterday on seven counts in connection with defrauding Covid-era economic programs out of millions of dollars in taxpayer-provided emergency funds, announced U.S. Attorney Jeanine Ferris Pirro.

A federal jury in U.S. District Court deliberated for less than one day before finding Biaou guilty on February 17 of six counts of wire fraud and one count of aggravated identity theft.

"Jose Biaou, a citizen of Benin, West Africa, was convicted of orchestrating massive fraud that siphoned millions of dollars from the American taxpayers at a time of national crisis when assistance was offered to those in need," said U.S. Attorney Pirro. "The Trump Administration will not look the other way and will make thieves accountable. Mr. Biaou will suffer the consequence of his attempt to cheat the American taxpayers."

Biaou, the founder of FRB Capital Group LLC, faces a maximum statutory sentence of 30 years in prison when he is sentenced by Judge Christopher R. Cooper. A date is pending. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided for informational purposes. The sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

According to the government's evidence at trial, Biaou applied for more than $5 million in loans and received more than $3.5 million in proceeds from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program on behalf of FRB and, Millennium Global Finance, the latter of which was an entirely fictional entity with no employees or operations.

In support of his FRB application, Biaou falsely claimed that he was a U.S. citizen and provided a counterfeit birth certificate, which he forged using a copy of his minor daughter's birth certificate.

FRB Capital is a brokerage firm for the commercial real estate industry. On his applications for federal emergency funding, Biaou consistently inflated the number of FRB employees, as well as their average monthly salaries, office rents, and other financial information. Biaou then applied for forgiveness of one of the PPP loans and submitted false information about how his business spent the funds during the pandemic.

Biaou also applied for and received $1.25 million in PPP funds for Millennium Global Finance after representing that the firm had 52 employees and an average monthly payroll of more than $520,000 throughout 2019. Millennium Global was not a real company.

Biaou was arrested July 17, 2024.

This case was investigated by the United States Postal Inspection Service - Washington Division. It is being prosecuted by Assistant U.S. Attorneys Will Hart and Sungtae Kang and Special Assistant U.S. Attorney Samanatha Miller.

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