Derek Parker PPP fraud case — N.D. Ga., Atlanta Division, No. 1:20-cr-00296

Case summary

Derek Parker was a defendant in United States v. Thomas et al, No. 1:20-cr-00296-JPB-CMS, in the U.S. District Court for the Northern District of Georgia. A defense motion in the case states that the second superseding indictment alleges 18 separate conspiracies arising from 14 loans made by five financial institutions under the Paycheck Protection Program. Parker pleaded guilty to count 18s, conspiracy to commit wire fraud under 18 U.S.C. § 1349, with the offense ending in June 2020. On August 31, 2022 the court adopted a joint request for a downward variance and sentenced him to 18 months of confinement and three years of supervised release, with a $100 special assessment, the fine waived, and restitution of $163,620.40 ordered jointly and severally and apportioned over the government's objection.

Case at a glance

What was Parker sentenced to?

Eighteen months in the custody of the Bureau of Prisons and three years of supervised release on count 18s, imposed August 31, 2022. The court found he did not have the ability to pay a fine or the cost of incarceration and waived both, ordered a $100 special assessment and $163,620.40 in restitution, and waived the interest requirement.

Who receives the restitution?

Two payees. Harvest Small Business Finance Corporation is listed with a total loss of $793,558.94 and restitution ordered of $158,711.79, and the Small Business Administration with a total loss of $24,543.06 and restitution of $4,908.61; the totals are $818,102 in loss and $163,620.40 ordered. Each payee is to receive 20 percent.

What does the government say Parker did?

Its sentencing memorandum states that he used his business and its bank account to obtain a fraudulent PPP loan, that the entire loan was deposited into an account he alone controlled, that he chose to launder the proceeds rather than return the funds to the lender, and that he ultimately received nearly $160,000 for himself. The memorandum agrees that 18 months' imprisonment is sufficient but not greater than necessary.

Summary written from the documents on this page; every sentence is sourced.