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Fraud

Ten Individuals Charged in $9 Million COVID-19 Fraud Scheme

Strategic Insights

— 2 min read

The United States Attorney's Office for the Northern District of Georgia recently announced charges against ten individuals for their involvement in a massive COVID-19 fraud scheme, which targeted government loan programs and resulted in over $9 million in false claims. The defendants allegedly submitted unauthorized and false applications for Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) funds, using stolen identification information and providing false tax records and bank statements to support their claims.

Key Takeaways:

  • The scheme targeted government loan programs, including the Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP), with over $9 million in false claims.
  • The defendants allegedly used real companies' information to submit unauthorized and false applications, providing false information about the companies' employees, payroll, and gross revenue.
  • The scheme involved the use of stolen identification information, false tax records, bank statements, and payroll documents to support the false claims.
  • The defendants allegedly conducted cash withdrawals, transferred funds, and purchased luxury items using the fraudulent loans, including a 2022 Bentley Bentayga, a 2020 McLaren 720S convertible, and a luxury home.
  • David Nathaniel Black, Jr. was charged with 17 counts of wire fraud, 17 counts of aggravated identity theft, and over 100 counts of money laundering, with a maximum sentence of 20 years' imprisonment per count.
  • Nine other individuals were charged with multiple counts of money laundering, with a maximum sentence of 10 years' imprisonment per count.
  • The scheme was investigated by the Federal Bureau of Investigation and the Department of Labor, Office of Inspector General.
  • The case is being prosecuted by Assistant United States Attorneys Kelly K. Connors and Sarah E. Klapman.

Statistics:

  • Over $9 million in false claims submitted through the Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP).
  • 17 counts of wire fraud against David Nathaniel Black, Jr.
  • 17 counts of aggravated identity theft against David Nathaniel Black, Jr.
  • Over 100 counts of money laundering against David Nathaniel Black, Jr.
  • 9 other individuals charged with multiple counts of money laundering.
  • $200,000 spent on a 2022 Bentley Bentayga.
  • $350,000 spent on a 2020 McLaren 720S convertible.
  • $142,680 spent on a luxury home down payment.
  • $180,645 spent on annual rent for a luxury home.
  • 10 individuals charged in the scheme.

Sources:

  • United States Attorney's Office for the Northern District of Georgia
  • Federal Bureau of Investigation (FBI)
  • Department of Labor, Office of Inspector General
  • Assistant United States Attorneys Kelly K. Connors and Sarah E. Klapman
  • Department of Justice's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721
  • NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
  • U.S. Attorney's Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6185

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