A federal judge ordered two New Smyrna Beach residents indicted in a scheme to defraud the government out of millions of dollars in coronavirus relief dollars to remain in custody after one did not appear for a hearing and the other appeared but did not respond to the judge, according to minutes of the hearing.
Evan Edwards, 64, and his son, Joshua Edwards, 30, were indicted in a scheme in which they are accused of using a phony ministry to defraud the Small Business Administration out of approximately $8.4 million according the indictment.
They both had an initial appearance on Wednesday before U.S. Magistrate Judge David A. Baker in Orlando.
But Evan Edwards did not attend his initial appearance “for reported medical reasons,” according to the minutes of the hearing.
Baker provisionally appointed federal Public Defender Erin Hyde to represent Evan Edwards because he “is unable or has refused to testify under oath,” concerning his legal representation, according to an order.
Joshua Edwards was present but did not respond to the judge’s questions or comments, according to the minutes of the hearing. Baker issued a similar order for Joshua Edwards stating he was “unable or has refused to testify under oath” about his legal representation.
The minutes state that “Based on the defendant’s lack of response to the Court’s inquiries, the Court provisionally appoints (attorney) Charles Taylor” to represent Joshua Edwards.
Baker ordered that both defendants be held in the custody of the U.S. Marshals Service “for transport to medical facility or local jail, as indicated,” according to the minutes.
Baker appointed Dr. Jeffrey Danziger, a psychiatrist, to examine Joshua Edwards to determine if he is competent to proceed. Danziger was ordered to provide a report on Joshua Edwards’ competency by Jan. 30 at which time a judge will set a competency hearing.
Danziger has testified in a number of unrelated criminal cases.
The initial appearances of both men were continued to await the reports of their “medical and mental health conditions,” according to the minutes.
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Fraudulent Applications for COVID Relief Funds
Joshua Edwards and Evan Edwards were each indicted by a federal grand jury on one count of conspiracy to commit bank fraud and one count of bank fraud.
They are accused of submitting a fraudulent Paycheck Protection Program (PPP) application on behalf of ASLAN International Ministry, Inc., to First Home Bank, now known as BayFirst, according to the indictment. Businesses applied for the government loans through federally insured institutions like banks.
Joshua Edwards was also indicted on one count of making a false statement to a lending institution.
Additionally, Evan Edwards was indicted on two counts of visa fraud for stating on an immigration application that he had never been arrested when in fact he had been arrested on Sept. 17, 2020, and for claiming that the gross annual income of ASLAN was $1,358,728 when he knew that was false, according to the indictment.
Joshua Edwards was also indicted on a count of visa fraud for claiming on an application for permanent residency that he had never been arrested when he had been arrested on Sept. 17, 2020, according to the indictment.
Joshua and Evan Edwards claimed that ASLAN International Ministries had an annual payroll of $2,764,438 when in actuality it was “significantly lower or entirely nonexistent” according to the indictment.
Joshua and Evan Edwards claimed that ASLAN had 486 employees but again the actual number was “significantly lower or entirely nonexistent” according to the indictment.
Joshua and Evan Edwards also claimed that ASLAN had annual revenue of $51,869,741 in 2019 and $48,235.824 in 2018 when the actual amount was “significantly lower, or entirely nonexistent,” according to the indictment.
A press release from the Department of Justice in 2021 stated that Joshua Edwards, Joy Edwards, Evan Edwards, and Mary Jane Edwards allegedly defrauded the Small Business Administration out of millions of dollars in coronavirus relief funds in April 2020.
Only Joshua Edwards and Evan Edwards have been charged.
The government obtained a civil judgment ordering the forfeiture of $8,417,261.38 in proceeds from bank fraud and money laundering offenses related to COVID relief fraud, the release stated.
Law enforcement seized all of the fraudulently obtained funds, according to the release.
