Harold Dotson, a 54-year-old accountant from Gaithersburg, Maryland, was sentenced to three years in federal prison, followed by six months of home confinement, for his role in a conspiracy to commit wire fraud. Dotson submitted fraudulent loan applications to secure COVID-19 relief funds.
The U.S. Attorney’s Office for Maryland revealed that between 2020 and 2022, Dotson helped file over $24 million in false CARES Act loan applications. U.S. District Judge Richard Bennett handed down the sentence earlier this week.
During the pandemic, several federal programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) were created to aid struggling businesses. Dotson exploited these programs by preparing fraudulent applications for businesses that either did not exist or significantly exaggerated their payroll and revenue.
Prosecutors noted that Dotson, leveraging his accounting skills, also created fake IRS tax forms to support these applications. His co-conspirator, Ahmed Sary, 47, of Brooklyn, Maryland, operated a credit repair company and supplied Dotson with false paperwork.
Dotson initially believed he was helping legitimate small businesses but later realized the scam involved fake businesses and inflated financials. His lawyer revealed Dotson’s gambling addiction worsened due to the influx of illicit funds, leading him to frequent casinos and lose thousands weekly.
The conspiracy resulted in over $14 million in PPP funds from more than 85 fraudulent loans, with another co-conspirator involved in additional loans totaling over $6 million. Moreover, fraudulent EIDL loans amounted to more than $3.5 million.
Along with prison and probation, Dotson was ordered to pay restitution of $24,807,432. In a related case, Ahmed Sary was sentenced to seven years in prison in June for his role in the fraud.
