Man Sentenced to a Year and a Half in Federal Prison for Covid-Relief Fraud
A federal judge in Chicago has sentenced a man to a year and half in prison for scheming to fraudulently obtain nearly $2 million in small business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
In 2020, Samuel W. Jackson engaged in fraud related to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan program (EIDL)—two sources of relief under the CARES Act.
Jackson submitted to lenders and the U.S. Small Business Administration numerous applications on behalf of businesses he controlled.
The applications contained false statements and misrepresentations concerning, among other things, the purported businesses’ employment figures, payroll costs, and operating expenses.
The fraud scheme caused a loss to lenders and the SBA of more than $1.9 million.
Jackson and others used the loan proceeds for their personal benefit, including $500,000 on luxury vehicles, nearly $230,000 at restaurants, bars, and entertainment venues, and $116,000 on rent.
Jackson, 45, formerly of Chicago, pleaded guilty earlier this year to wire fraud and money laundering charges. On Wednesday, U.S. District Judge Matthew F. Kennelly sentenced Jackson to 18 months in federal prison and ordered him to pay approximately $1.9 million in restitution.
The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the SBA Office of Inspector General.
“Defendant was the hub of a fraudulent scheme,” Assistant U.S. Attorneys Christopher K. Veatch and Branka Cimesa argued in the government’s sentencing memorandum. “Defendant abused a federal program funded by taxpayer money and designed to help those in need.”
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