A Maryland man was sentenced to 11 years in federal prison for orchestrating a scheme that defrauded the U.S. Small Business Administration (SBA) of more than $7.6 million, according to the U.S. Attorney’s Office for the Southern District of New York.
Jacob Carter, 39, of Capitol Heights, Maryland, was convicted for leading a fraud operation with his co-defendants Quadri Salahuddin, Anwar Salahuddin, and Crystal Ransom. The group submitted fraudulent applications for pandemic relief funds, using the identities of over 1,000 individuals to claim funds intended for businesses. The defendants applied for Economic Injury Disaster Loans (EIDL), falsely asserting that the individuals owned businesses with at least 10 employees. In reality, none of the applicants were business owners or employers.
Despite these fraudulent claims, the group managed to secure over $7.6 million in advance payments from the SBA. The recipients of these funds then kicked back a portion of the money to Carter and his co-conspirators. Carter flaunted his newfound wealth by purchasing expensive jewelry, leasing a Lamborghini, and taking photos of large sums of cash.
According to Acting U.S. Attorney Matthew Podolsky, Carter exploited a taxpayer-funded program that was meant to support struggling small businesses during the COVID-19 pandemic. Instead of using the funds for their intended purpose, Carter misused the money for his personal gain.
As part of his sentencing, Carter was also ordered to pay $7,737,000 in restitution to the SBA and forfeit $1,720,950 in assets.
Crystal Ransom pleaded guilty to conspiracy charges related to the wire fraud scheme. On April 24, 2024, she was sentenced to two years in prison, followed by three years of supervised release, including six months of home confinement. Ransom was also ordered to pay $7,577,000 in restitution and forfeit $99,000.
The Salahuddins, Quadri and Anwar, are scheduled to be sentenced on March 26, 2025, for their involvement in the fraudulent scheme.
This case highlights how individuals exploited the emergency funds intended to help businesses during the pandemic, resulting in significant financial losses for taxpayers.
