Zipora and Montreal Hudson Convicted of PPP Loan Fraud
Zipora Hudson and her son Montreal Hudson, both residents of Olive Branch, Mississippi, were convicted today for conspiracy to commit wire fraud and conspiracy to commit money laundering, as announced by the U.S. Attorney’s Office for the Northern District of Mississippi.
Deandre Jones, also of Olive Branch, Pleads Guilty
The U.S. attorney’s office noted that Deandre Jones, also from Olive Branch, had previously pleaded guilty in connection with the case.
Fraudulent Tax Documents and Ineligible Borrowers
Court documents revealed that Zipora Hudson, Montreal Hudson, and Deandre Jones used Zippy Bee, LLC, a tax preparation business located in Charleston, Mississippi, to file fraudulent Paycheck Protection Program (PPP) loan applications for ineligible borrowers.
The defendants created fake Schedule C tax documents, which inflated gross income for real businesses or falsely claimed income for businesses that didn’t exist. These falsified documents enabled them to secure PPP loans ranging from $19,000 to $20,833 per loan.
Kickbacks, Luxury Purchases, and Stolen Funds
In return for filing the fraudulent applications, the defendants required borrowers to pay kickbacks from the loan proceeds. The illegally obtained funds were then used by the defendants to purchase luxury cars, real estate, and other high-end items.
Fraud Costs Taxpayers Millions
U.S. Attorney Clay Joyner emphasized the scale of the fraudulent scheme, stating, “Zipora Hudson, Montreal Hudson, and Deandre Jones stole millions of dollars from American taxpayers while taking advantage of programs designed to help businesses during a national crisis.”
Sentencing Set for April 2025
The sentencing for both Zipora and Montreal Hudson is scheduled for April 24, 2025. Each defendant faces up to 30 years for the wire fraud conspiracy and 20 years for the money laundering conspiracy.
