The Allegations: A Web of Deceit

An Atlanta man, Ian patrick Jackson, 37, faces charges related to a sprawling COVID-19 relief fraud scheme. He allegedly orchestrated the submission of 15 fraudulent loan applications to the U.S.Small Business Governance (SBA), seeking funds from the Paycheck Protection Program (PPP) and economic Injury Disaster Loan (EIDL) program. The total value of the fraudulent requests exceeds $3.39 million.

According to court documents, Jackson allegedly conspired wiht another Atlanta resident to recruit business owners into the scheme.The indictment outlines a systematic approach to defraud the government.

• Recruitment: Jackson and his co-conspirator allegedly solicited and recruited at least nine business owners.
• Fabrication: They allegedly directed these owners to submit fraudulent PPP loan applications using fabricated tax documents.
• False Claims: The applications falsely claimed that each business employed 16 individuals and paid monthly wages of $120,000.
• Money Laundering: After receiving the funds,the business owners allegedly wrote “payroll” checks to individuals who did not work for their companies. The money was then either kept by the owners or given to the co-conspirator, who allegedly shared a portion with Jackson.

A Larger Fraud Ring Unravels

Jackson’s arrest marks the 12th defendant charged in connection with this Atlanta-based PPP fraud ring. 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. Authorities have recovered nearly $1.2 million of the stolen funds to date.

Beyond Conspiracy: Additional Schemes

The indictment alleges that Jackson participated in three additional schemes to submit fraudulent PPP or EIDL applications:

1. Parkway Media Group LLC: He allegedly 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. Forged Identification: He allegedly used a forged driver’s license to fraudulently apply for approximately $100,000 in PPP and EIDL program loans using false revenue statements.
3. Express Xchange LLC: He allegedly fraudulently obtained a $240,035 PPP loan and $125,000 in EIDL program loans and grants on behalf of Express Xchange LLC.

The indictment further alleges that Jackson misused the loan proceeds. He allegedly wrote checks to individuals who did not work for the businesses and used the funds for personal expenses, including restaurant dining, spa services, phone and credit card payments, and a vacation in Aruba.

The Charges and potential Penalties

Jackson faces serious charges, including:

• Conspiracy to commit bank fraud
• Two counts of bank fraud
• Two counts of wire fraud
• 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.

Law enforcement Collaboration

The examination is a collaborative effort between several agencies. 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 announced the arrest.

The SBA Office of Inspector General and FBI Atlanta Field Office are actively 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.

Nationwide crackdown on COVID-19 Fraud

Since the inception of the Coronavirus Aid, Relief, and Economic security (CARES) Act, the Criminal Division’s Fraud Section has been actively prosecuting COVID-19 related fraud. They have 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, and also numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.

reporting COVID-19 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.

FAQ: COVID-19 Relief Fraud

What is the PPP?

The Paycheck Protection Program (PPP) provided forgivable loans to small businesses to help them keep employees on the payroll during the COVID-19 pandemic.

What is the EIDL program?

The Economic Injury Disaster Loan (EIDL) program offers low-interest loans to small businesses and private non-profit organizations to help them overcome temporary revenue losses.

How can I report COVID-19 fraud?

Report suspected fraud to the Department of Justice’s National Center for Disaster Fraud (NCDF) via their hotline or web complaint form.

What are the penalties for PPP fraud?

Penalties can include meaningful prison time and fines, depending on the severity of the fraud.