Ten people have been charged in federal court with fraud and money laundering related to government loan programs intended to provide relief during the COVID-19 pandemic. The U.S. Attorney’s Office for the Northern District of Georgia announced that the defendants allegedly targeted the U.S. Small Business Administration’s Economic Injury Disaster Loan (EIDL) program and Paycheck Protection Program (PPP), securing over $9 million in fraudulent loans between November 2020 and June 2023.
According to prosecutors, David Nathaniel Black, Jr., along with others, submitted false loan applications using real companies’ information without the knowledge of their owners or officers. The applications reportedly contained false statements about employee numbers, payroll needs, and revenue figures, supported by fraudulent documents such as fake tax records and bank statements.
“Fraud schemes, like the ones perpetrated by these defendants, stole valuable resources meant to assist small businesses and citizens during difficult times,” said United States Attorney Theodore S. Hertzberg. “The U.S. Attorney’s Office is committed to prosecuting and punishing cold-hearted criminals who target government aid programs for their personal gain.”
FBI Atlanta Special Agent in Charge Paul Brown commented on the intent behind PPP loans: “PPP loans were intended to provide critical relief to small businesses. FBI Atlanta and our law enforcement partners will continue to aggressively pursue anyone who exploited the pandemic as a means to enrich themselves.”
Mathew Broadhurst, Special Agent-in-Charge for the Southeast Region of the U.S. Department of Labor Office of Inspector General, stated: “An important mission of the Office of Inspector General is to investigate allegations of unemployment insurance fraud targeting state workforce agencies. We will continue to work with our law enforcement partners to investigate these types of allegations.”
Authorities allege that after receiving loan funds, defendants made cash withdrawals and transferred money—sometimes using it for luxury purchases such as high-end vehicles and expensive housing. For example, Black is accused of spending $200,000 on a 2022 Bentley Bentayga, $350,000 on a 2020 McLaren 720S convertible, $142,680 as a down payment for a Mercedes Benz G-Class Wagon, and $180,645 for annual rent on a luxury home.
Black faces 17 counts each of wire fraud (up to 20 years per count) and aggravated identity theft (mandatory two-year consecutive terms per count), along with more than 100 counts of money laundering (up to 10 years per count). He is also charged—alongside Chris Elvins Constant—with conspiracy related to laundering proceeds from an alleged fraudulent unemployment insurance scheme.
Other individuals charged with multiple counts of money laundering include Rashad Avery; Tara Batson; Nicole Cooley; Reginald Douglas; Yvenord Guerilus; Carson Merice; Rise Robinson; George Thompson; all from Georgia or Florida.
Prosecutors emphasized that all defendants are presumed innocent until proven guilty in court.
The Federal Bureau of Investigation and Department of Labor Office of Inspector General are investigating this case. Assistant United States Attorneys Kelly K. Connors and Sarah E. Klapman are prosecuting.
Nine defendants appeared in federal court this week following their arrests. Authorities ask anyone with information about Rise Robinson’s whereabouts or tips leading to her arrest to contact the FBI at https://tips.fbi.gov or call 800-CALL-FBI.
In May 2021, the Department of Justice created the COVID-19 Fraud Enforcement Task Force to coordinate efforts across agencies against pandemic-related fraud by sharing investigative resources and best practices (https://www.justice.gov/coronavirus).
Individuals can report suspected COVID-19 fraud through the National Center for Disaster Fraud Hotline at 866-720-5721 or online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.