FRESNO, CA – Henry Ellard Jr., 39, of Fresno, pleaded guilty today to fraudulently obtaining $144,000 in COVID-19 relief funds from the Small Business Administration (SBA), the U.S. Attorney’s Office for the Eastern District of California announced.
Ellard, who established the company Baptiste Ellard LLC in July 2020, applied for and received the relief funds despite the fact that he was ineligible for assistance. To secure the funds, Ellard falsely represented to the SBA that his company had 10 employees, an annual payroll of over $695,000, and intended to use the funds for legitimate business expenses. In reality, Baptiste Ellard LLC had no employees, no payroll, and was not actively operating at all.
Instead of using the $144,000 for business purposes, Ellard diverted the funds for personal expenses, including dining at restaurants, entertainment at bars, hotels, airfare, clothing purchases, and golf-related activities.
Ellard is scheduled to be sentenced on February 24, 2025. He faces up to 10 years in federal prison and a $250,000 fine, though the final sentence will be determined by the court based on applicable statutory factors and Federal Sentencing Guidelines.
This case is part of the ongoing efforts of the COVID-19 Fraud Enforcement Strike Force, an initiative created by the U.S. Department of Justice to combat large-scale pandemic relief fraud. The Strike Force combines resources from federal, state, and local agencies to address multistate fraud schemes involving COVID relief funds.
Assistant U.S. Attorney Christopher Baker, who is prosecuting the case, stated that the government’s efforts are focused on holding individuals accountable for misappropriating pandemic relief funds that were meant to support struggling businesses and workers.