7 GA Residents Charged In PPP Fraud Case

GEORGIA — Seven people from Georgia are being accused of trying to steal more than $12 million in pandemic aid money as the Department of Justice released new details in a pandemic relief fraud investigation.

The DOJ announced new charges, convictions and sentencings in the investigation Tuesday.

Thirteen people total were sentenced, while five people pleaded guilty, between Jan. 4, 2021, and Aug. 31 in the Northern District of Georgia.

The DOJ said the defendants illegally acquired funds from the Paycheck Protection and Economic Injury Disaster Loan programs by applying for loans under false businesses and purchasing luxury items.

Such items included two Range Rovers, an Acura NSX and a Mercedes Benz S-Class S65 AMG, according to the DOJ.

The defendants are accused of submitting at least 14 fraudulent loan applications around April-August 2020 in attempts to get more than $14.7 million, the DOJ said.

The estimated amount was about $11.1 million in PPP loans, more than $1.15 million in EIDL loans and more than $2.4 million automobile loans, the DOJ said.

The defendants stated in the applications that each business was operating as of Feb. 15, 2020, and had salaried employees and payroll taxes, the DOJ said.

They said the money obtained would be used to retain workers and maintain payroll, make mortgage interest payments, lease payments and utility payments, the DOJ said.

Specifically, the defendants said in the PPP loan applications that each business had around 60 employees and about $300,000 in average monthly payroll taxes, the DOJ said, adding fraudulent IRS forms were submitted.

The following Georgia residents were either sentenced or pleaded guilty for pandemic relief fraud:

• Darrell Thomas, 36, of Johns Creek, Georgia, was sentenced to 15 years in prison.
• Charles Petty, aka Charles Knight, 49, of Stone Mountain, Georgia, was sentenced to three years and 10 months in prison.
• Charles Hill, IV, 46, of Norcross, Georgia, was sentenced to five years of probation, including the first 27 months on home detention.
• Andre Lee Gaines, 67, of Dallas, Georgia, was sentenced to five years of probation.
• Denesseria Slaton, 53, of McDonough, Georgia, was sentenced to three years and 10 months in prison.
• Megan Thomas, 33, of Alpharetta, Georgia, pleaded guilty to conspiracy to commit wire fraud.
• Jesika Blakely, 34, of Atlanta, Georgia, pleaded guilty to conspiracy to commit money laundering.