Michigan Man Pleads Guilty to Wire Fraud and Money Laundering in COVID-19 Pandemic Relief Scheme

Strategic Insights -

A 36-year-old Michigan man, Malcolm Culmer, has pleaded guilty to wire fraud and money laundering for his role in a scheme to obtain COVID-19 pandemic relief benefits through false statements and misrepresentations. Between April 2020 and July 2021, Culmer submitted eight applications for Economic Injury Disaster Loans (EIDL) using fictitious companies, seeking a total of $1,091,499, and obtained $187,500 in approved loans. He also applied for pandemic unemployment benefits in Kentucky, which contained false statements and representations, and obtained $39,496 in benefits.

Key Takeaways:

  • Malcolm Culmer, a 36-year-old man from Michigan, pleaded guilty to wire fraud and money laundering in a scheme to obtain COVID-19 pandemic relief benefits.
  • Culmer submitted eight applications for EIDL using fictitious companies, seeking a total of $1,091,499, and obtained $187,500 in approved loans.
  • He also applied for pandemic unemployment benefits in Kentucky, which contained false statements and representations, and obtained $39,496 in benefits.
  • Culmer engaged in several transactions over $10,000 using the fraudulently obtained funds, including withdrawing cash, transferring money between bank accounts, and purchasing automobiles to expand a vehicle rental business.
  • Paul McCaffrey, Acting United States Attorney for the Eastern District of Kentucky, and Joseph V. Cuffari, Inspector General, Department of Homeland Security, jointly announced the guilty plea.
  • The investigation was conducted by the Department of Homeland Security's Office of Inspector General and the U.S. Department of Labor's Office of Inspector General.
  • Assistant U.S. Attorney Brittany Dunn-Pirio is prosecuting the matter on behalf of the United States.
  • Culmer faces a maximum of 20 years in prison and was scheduled to appear for sentencing on December 16, 2022.
  • The Attorney General established the COVID-19 Fraud Enforcement Task Force on May 17, 2021, to combat and prevent pandemic-related fraud.

Statistics:

  • $1,091,499: The total amount of EIDL loans that Culmer sought through his eight applications.
  • $187,500: The amount of approved EIDL loans that Culmer obtained.
  • $39,496: The amount of pandemic unemployment benefits that Culmer obtained in Kentucky.
  • $20 years: The maximum prison sentence that Culmer faces.
  • 8: The number of EIDL applications that Culmer submitted using fictitious companies.

Sources:

  • United States Attorney's Office for the Eastern District of Kentucky
  • Department of Homeland Security's Office of Inspector General
  • U.S. Department of Labor's Office of Inspector General
  • Justice.gov/coronavirus
  • Disaster-fraud Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form