A Georgia woman has been sentenced to five years in prison for defrauding COVID-19 small business relief programs. Gladys Harun, a 44-year-old tax preparer from Byron, Georgia, pleaded guilty to lying to a federal investigator and was ordered to repay over half a million dollars she fraudulently obtained from the programs.
Harun used her knowledge as a tax preparer to obtain hundreds of thousands of dollars in funds intended for struggling small businesses during the COVID-19 pandemic. U.S. Attorney Jill E. Steinberg stated, "Such greed-fueled theft from government programs hurts businesses legitimately in need of vital relief efforts."
According to court documents, Harun admitted to lying to investigators from the Small Business Administration Office of Inspector General about applications she filed for herself and others. She obtained more than $550,000 from a California lender through the Paycheck Protection Program and Economic Injury Disaster Loans, both part of the Coronavirus Aid, Relief, and Economic Security Act.
The sentencing of Harun sends a clear message that those who stole taxpayer dollars through the Paycheck Protection Program will be held accountable. Amaleka McCall-Brathwaite, SBA-OIG’s Eastern Region Special Agent in Charge, emphasized, "This sentence demonstrates that those responsible will be held accountable."
The investigation was a joint effort between the Small Business Administration Office of Inspector General, the U.S. Secret Service, and IRS Criminal Investigation. J. Craig Reno, Resident Agent in Charge of the U.S. Secret Service Savannah Resident Office, stated, "The United States Secret Service, along with our law enforcement partners, will continue to investigate, arrest, and support the successful prosecution of the criminals who choose to commit fraud."
Maisha Horton, Acting Assistant Special Agent in Charge of IRS Criminal Investigation, Atlanta Field Office, highlighted the continued pursuit of those who fraudulently obtained funds from the PPP and EIDL programs. "There are individuals who believe they've gotten away with stealing taxpayers' funds through those programs; however, IRS Criminal Investigation and our law enforcement partners vigorously continue investigating suspects and forwarding our findings for adjudication," stated Horton.
The case was prosecuted by Southern District of Georgia Assistant U.S. Attorney L. Alexander Hamner. The Department of Justice's National Center for Disaster Fraud encourages anyone with information about attempted fraud involving COVID-19 to report it through their hotline or web complaint form.
Fraudulent activities like these undermine the purpose of relief programs and hinder the assistance that legitimate businesses desperately need. The sentencing of Gladys Harun serves as a reminder that individuals who choose to exploit such programs will face serious consequences.