A Georgia man was sentenced earlier this week to over three years in federal prison for defrauding a COVID-19 program.
Brian Graham, 49, Lithia Springs, Georgia, was sentenced to 37 months in federal prison, three years of supervised release, and was directed to pay restitution of $441,546 and forfeiture after pleading guilty to one count of wire fraud.
According to the plea agreement, between April 2020 and August 2021, Graham prepared and submitted fraudulent Economic Injury Disaster Loan Program (EIDL) and Paycheck Protection Program (PPP) applications on behalf of several business entities that he controlled.
The EIDL and PPP are economic relief programs launched and expanded by the federal government in response to the COVID-19 pandemic. In those applications, the defendant made materially false statements regarding the entities’ number of employees, gross revenues, cost of goods sold, and payroll.
“A fraud on the federal government is a fraud on the American taxpayer,” said United States Attorney for the District of Colorado Peter McNeilly. “I am proud that our office continues to seek out and prosecute these greed-driven criminals who choose to benefit from funds meant to help their fellow Americans in a time of need.”
He also certified that the information provided in the applications was true and accurate, and that the funds would be used to pay payroll and other permissible business expenses when, in fact, he used the bulk of the proceeds for his personal benefit.
“This sentencing demonstrates the commitment of the Treasury Inspector General for Tax Administration (TIGTA) to investigate and bring to justice those who victimize the American taxpayer,” said Krystofor Proev, TIGTA Special Agent in Charge. “Fraudulently applying for loans through a federal program meant to assist Americans in need will be met with aggressive investigation and prosecution.”
Senior United States District Judge John L. Kane presided over the sentencing.
“Intentional misrepresentation to gain access to Small Business Administration (SBA) program funds intended for the nation’s small businesses is reprehensible,” said SBA Office of Inspector General Western Region Acting Special Agent in Charge Jonathan Huang. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs.”
The Treasury Inspector General for Tax Administration and the Small Business Administration Office of Inspector General handled the investigation.
Assistant United States Attorney Nicole Cassidy handled the prosecution.
The core mission of the National Fraud Enforcement Division is to investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. The National Fraud Enforcement Division will fulfill that mission by coordinating with agencies responsible for administering benefit programs; partnering with federal, tribal, state, territorial, and local law enforcement on fraud-fighting efforts; developing systems and processes that ensure efficient identification of fraud against taxpayer dollars; and equipping prosecutors and law enforcement with state-of-the-art tools and resources needed to bring criminal actors to justice. The attorneys in the National Fraud Enforcement Division will work every day to protect the financial integrity of our government and the tax system that supports it.
Department of Justice efforts support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
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 at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
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