Arlington Sheriff's Deputy Indicted In COVID-19 Wire Fraud Scheme

ARLINGTON, VA — India Middleton, a deputy sheriff with the Arlington County Sheriff’s Office, was indicted in Georgia by the U.S. Postal Inspection Service on conspiracy to commit wire fraud.

Middleton was one of 10 defendants indicted in a multi-state scheme to submit fraudulent loan applications for non-existence businesses as part of the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP), according to a U.S. Department of Justice release.

“The impact of COVID-19 on small businesses around the country has been devastating,” said acting U.S. Attorney Kurt R. Erskine, in the release. “The defendants allegedly abused both programs by submitting fraudulent applications and obtaining thousands of dollars that should have gone to support struggling businesses. We will work tirelessly to protect the integrity of the EIDL and PPP and to help small businesses stay afloat.”

The scheme came to light as part of a narcotics investigation. On Aug. 11, 2020, USPIS and Drug Enforcement Administration agents executed a search warrant on the home of Alicia Quarterman in Atlanta, according to court documents. In addition to seizing a package containing methamphetamine hidden in dog food containers, agents found cell phones and a ledger detailing personal and banking information of several individuals. After obtaining search warrants, agents found hundreds of text messages and photos related to fraudulent EIDL and PPP business loans.

Police say that Quarterman and Katrina Lawson, a former deputy sheriff for Fulton County, Georgia, familiarized themselves with the requirements of filing applications for the EIDL and the PPP. They enlisted friends and family who didn't own businesses to file applications, police say. In addition to filing for the business loans, police say they created fake IRS documentation to support them.

Between July 1 and Aug. 11, 2020, Quarterman completed about 58 fraudulent EIDL applications, seeking $490,000 in loan money, according to court documents. Lawson filed 11 fraudulent PPP loan applications in the same time frame, seeking at least $224,000.

The defendants have been charged with various counts of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering.

“The Arlington County Sheriff’s Office is committed to holding ourselves accountable to the highest professional standards to ensure the public’s trust,” Sheriff Beth Arthur said, in the release. “Once we became aware of the allegations, we cooperated with the United States Postal Inspection Service and upon arrest, we immediately initiated an internal administrative investigation. We take any and all allegations of staff misconduct seriously and can ensure the public that a comprehensive internal investigation will be conducted.”

Middleton, who is currently assigned to court duty, has been a deputy with the Sheriff's Office since 2015. She is the subject of an internal administrative review and has been placed on administrative leave.