PPP Fraud Conviction
A federal jury in the Northern District of Georgia has convicted Shelitha Robertson, a Georgia attorney and former City of Atlanta police officer, of fraudulently obtaining over $7 million in loans through the Paycheck Protection Program (PPP).
Fraudulent PPP Loan Applications
Court documents and trial evidence revealed that Robertson, aged 62 and residing in Atlanta, conspired to submit PPP loan applications for four businesses she owned.
These applications contained false information, inflating the number of employees and average monthly payroll to secure larger PPP loans.
Additionally, false tax documents were submitted to support these misleading statements.
Misuse of Loan Proceeds
Robertson misappropriated the obtained loan funds for personal gain, purchasing luxury items such as a 10-carat diamond ring and transferring funds to family members and a co-conspirator.
Conviction and Charges
The jury convicted Robertson on charges including one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of money laundering.
Sentencing is scheduled for April 11, 2024, with potential penalties of up to 20 years in prison for wire fraud-related charges and 10 years for money laundering.
Justice Department’s Prosecution Efforts
This case is part of the Justice Department’s broader crackdown on PPP fraud, with Robertson being the second defendant convicted in an approximately $15 million PPP fraud conspiracy.
The announcement is made by key officials, including Acting Assistant Attorney General Nicole M. Argentieri and U.S. Attorney Ryan K. Buchanan.
Investigating Agencies
The investigation was conducted by the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), and U.S. Treasury Inspector General for Tax Administration (TIGTA).
Fraud Section’s Role
The Fraud Section of the Criminal Division is leading the prosecution of fraud schemes exploiting the PPP.
Over 200 defendants in more than 130 criminal cases have been prosecuted, with significant assets seized from fraudulently obtained PPP funds.
COVID-19 Fraud Enforcement Task Force
The Attorney General’s establishment of the COVID-19 Fraud Enforcement Task Force is mentioned, focusing on coordinating efforts to combat pandemic-related fraud and bolstering investigations.
Reporting Fraud Information
The announcement concludes by encouraging individuals with information about attempted COVID-19 fraud to report it through the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline.