TAMPA, Fla. — Federal authorities have arrested and charged 11 individuals accused of stealing $2.2 million from COVID-19 relief programs, according to the U.S. Attorney’s Office for the Middle District of Florida.
U.S. Attorney Gregory Kehoe announced the indictment Friday, alleging the defendants conspired to defraud the Small Business Administration (SBA) by submitting fraudulent applications for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds.
The defendants are accused of using inactive or minimally operating businesses to falsely claim they provided services such as healthcare, transportation, and food services. Prosecutors allege the scheme operated between April 2020 and June 2021, diverting pandemic relief money intended to help struggling small businesses.
“These are not victimless crimes,” said Jamila Davis, Assistant Special Agent in Charge with the SBA Office of Inspector General. “The ultimate victim in each case is the American taxpayer.”
Each defendant faces one count of conspiracy to commit wire fraud and nine counts of wire fraud, charges that carry a potential sentence of up to 20 years in prison per count if convicted.
Federal prosecutors emphasized that the CARES Act programs were designed as financial lifelines during the pandemic, and that fraud undermined their purpose. Authorities say efforts are ongoing to recover stolen funds and prosecute additional cases tied to pandemic relief fraud.
In a separate case, Neil Bryant, 45, of Winter Haven, was also indicted on wire fraud charges for allegedly submitting a fraudulent EIDL application. Prosecutors are seeking forfeiture of more than $52,000 in that case.
Officials estimate that while the SBA distributed more than $1.2 trillion in relief loans, as much as $200 billion may have been obtained fraudulently. Federal authorities say investigations and prosecutions will continue.
