By Jay Weaver
Eric Sheppard, the first South Florida real estate developer to be charged with COVID-19 relief loan fraud, was sentenced on Friday, June 7, 2024, to 18 months in prison. The 55-year-old was convicted of fraudulently securing hundreds of thousands of dollars from the Paycheck Protection Program (PPP), which was designed to help businesses during the pandemic.
Sheppard, who gained prominence for his renovations at the Carillon Hotel in Miami Beach, was convicted in January of wire fraud and aggravated identity theft. Prosecutors accused him of submitting false loan applications, misrepresenting his business expenses to obtain the funds. During the trial, Sheppard testified that the money was used appropriately, but the jury found him guilty of lying under oath.
Although federal sentencing guidelines suggested a prison term of up to two and a half years, U.S. District Judge Beth Bloom handed down a lighter sentence of 18 months. Bloom explained that Sheppard’s case was less severe compared to other high-profile PPP fraud cases, many of which involved luxury purchases such as Lamborghinis and jewelry. She acknowledged, “Certainly this case did not involve Lamborghinis or jewelry,” but emphasized that Sheppard unlawfully obtained funds he wasn’t entitled to.
Despite Sheppard’s request for no prison time, the judge denied his defense’s bid for leniency, but also chose not to apply harsher penalties based on claims that Sheppard had obstructed justice or used sophisticated means to exploit the government program.
In addition to serving his prison sentence, Sheppard will be required to pay restitution for the misused PPP funds. This case is a part of a broader federal crackdown on fraudulent PPP loan claims, many of which have involved individuals using the funds for personal luxuries rather than business expenses.
Sheppard’s conviction adds to the growing list of South Florida defendants convicted of exploiting government relief programs designed to help businesses in need during the pandemic.
