A U.S. citizen has pleaded guilty to defrauding more than $1 million from a pandemic relief program, federal authorities said.
Jamar J. Johnson entered the plea April 20 in connection with a scheme to obtain $1,047,824 through the Small Business Administration’s Paycheck Protection Program, according to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Phoenix.
Prosecutors said Johnson submitted fraudulent loan applications in 2020 on behalf of a company he claimed operated an amateur basketball league. Based on those claims, the SBA approved and disbursed four loans totaling more than $1 million.
Authorities said Johnson did not use the funds for legitimate business expenses. Instead, he used the money for personal gain, including purchasing cryptocurrency and transferring funds to foreign markets to conceal the proceeds.
The Paycheck Protection Program was created under the Coronavirus Aid, Relief and Economic Security Act to help small businesses cover payroll and other eligible costs during the COVID-19 pandemic.
Federal officials said fraud involving the program diverted resources from legitimate businesses and increased costs to taxpayers.
“Those who defraud the American people and attempt to hide their crimes will be identified, investigated and held accountable,” said Acting Assistant Secretary Lauren Bis in a statement.
HSI said it continues to investigate financial crimes involving government relief programs, including schemes that use cryptocurrency and international transactions to obscure illicit funds.
Information about Johnson’s sentencing was not immediately available.
Susan Shrestha
View More PostsSusan Shrestha is a Europe-based journalist. He covers a wide range of topics, from local matters to global affairs. Shrestha previously worked as a reporter for Khasokhas in Nepal.
