Man Charged in Connection with Fraudulent COVID-19 Relief Loan Applications Totaling More than $3.39M

A Georgia man was arrested today in connection with his role in 15 fraudulent COVID-19 relief loan applications administered by the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program, totaling more than $3.39 million in fraudulent loan proceeds.

According to court documents, Ian Patrick Jackson, 37, of Atlanta, conspired with another Atlanta man to solicit, recruit, and direct at least nine business owners to submit fraudulent PPP loan applications using fabricated tax documents. Jackson and his co-conspirator allegedly directed the business owners to falsely claim in the loan applications that each business employed 16 individuals and paid monthly wages of $120,000. After receiving the funds, the business owners wrote “payroll” checks to individuals who did not work for their companies and then either kept the money for themselves or gave the money to the co-conspirator, who in turn provided a share to Jackson. 

Jackson is the 12th defendant to be charged in connection with the Atlanta-based PPP fraud ring that allegedly fraudulently obtained millions in PPP loans. All eleven previously charged defendants, including the nine business owners, have pleaded guilty or been convicted at trial related to $2.7 million in fraudulent PPP loans. To date, authorities have recovered nearly $1.2 million of the stolen money.

In addition to the charged conspiracy, Jackson is alleged to have participated in three other schemes to submit fraudulent PPP or EIDL applications: (1) He applied for a fraudulent $237,500 PPP loan on behalf of Parkway Media Group LLC using fabricated tax forms and a doctored bank statement; (2) He used a forged driver’s license to fraudulently apply for approximately $100,000 in PPP and EIDL program loans using false revenue statements; and (3) He fraudulently obtained a $240,035 PPP loan and $125,000 in EIDL program loans and grants on behalf of Express Xchange LLC. As alleged in the indictment, he wrote checks made payable to individuals who did not work for the businesses using the loan proceeds. He also allegedly used the loan proceeds to pay for personal expenses, including restaurant dining, spa services, phone and credit card payments, and a vacation in Aruba. 

Jackson is charged with conspiracy to commit bank fraud, two counts of bank fraud, two counts of wire fraud, and two counts of money laundering. If convicted, he faces a maximum penalty of 30 years in prison on each of the conspiracy and bank fraud counts and 20 years in prison on each of the wire fraud and money laundering counts.  

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Theodore S. Hertzberg for the Northern District of Georgia, Deputy Inspector General Sheldon Shoemaker of the Small Business Administration Office of the Inspector General and Special Agent in Charge Paul Brown of the FBI Atlanta Field Office made the announcement.

The SBA Office of Inspector General and FBI Atlanta Field Office are investigating the case.

Trial Attorney Matthew Reilly of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Diane C. Schulman for the Northern District of Georgia are prosecuting the case.

Since the inception of the Coronavirus Aid, Relief, and Economic Security Act, the Criminal Division’s Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. 

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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Source: Justice.gov