Feds say Royal Palm political consultant defrauded Paycheck Protection Program of more than $200K
Federal prosecutors say he claimed to have 30 employees for his political consulting business but actually had none.
A 42-year-old Royal Palm Beach man, who served as a political consultant to a Broward County powerhouse who ran for Congress last year, was charged Monday with bilking a federal program created to help businesses survive the COVID-19 pandemic.
Omar Smith is accused of obtaining a $212,500 loan from the Paycheck Protection Program, claiming his company employed 30 workers. Federal prosecutors said Smith’s company, A Star for I, had no employees.
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Once Smith received the money in July 2020, prosecutors said he spent months trying to cover his tracks. He wrote checks to people who did little or no work for the company, prosecutors said in court papers.
Smith was a paid consultant to former Broward County Mayor Dale Holness, who narrowly lost his bid to replace U.S. Rep. Alcee Hastings, who died in April 2021.
Holness’ daughter, Damara, last year pleaded guilty to lying on a PPP application to obtain $300,000. She falsely claimed she employed 18 people. She was sentenced to nearly two years in prison.
Smith, who is charged with conspiring to commit bank fraud and wire fraud, faces a maximum 30-year prison sentence and $1 million fine.
jmusgrave@pbpost.com