James Stote

Identity and role

James Richard Stote, of Hollywood, Florida, was 54 when DOJ announced the charges in August 2020 and 56 at sentencing, according to the Justice Department. He was prosecuted in the Northern District of Ohio with Phillip J. Augustin, of Coral Springs, whom DOJ describes as a manager for professional football players. DOJ says 25 people were charged in the scheme across the Northern District of Ohio, the Southern District of Florida and the Middle District of North Carolina.

Biography / career arc

The DOJ releases describe no business of his own outside the scheme. According to DOJ, it began with Augustin's company, Clear Vision Music Group LLC: the two obtained a fraudulent PPP loan for it using falsified documents, then "immediately began working to obtain larger PPP loans for themselves and their associates."

The case / pandemic-relief role

Stote and Augustin recruited PPP applicants and prepared and submitted fraudulent applications for them in exchange for a share of the loan proceeds, according to DOJ. The applications relied on fake payroll numbers, falsified IRS forms and phony bank statements; Augustin recruited through his network of contacts in professional football. DOJ says Stote submitted or facilitated at least 79 fraudulent applications worth at least $35 million, including at least two loans to Northeast Ohio entities that obtained about $875,000.

In related cases, borrowers admitted paying him kickbacks for preparing and submitting their applications: more than $21,000 from Keyaira Bostic, more than $28,000 from another borrower, and more than $311,000 from a former NFL player. Three North Carolina men sentenced in February 2022 had, per DOJ, "joined a scheme led by James Stote."

Their own relief

DOJ's releases do not total the kickbacks he received. He was ordered to pay $10,149,752.69 in restitution and to forfeit $1,137,715.13 in U.S. currency, four Rolex watches and other jewelry valued at more than $31,000 (DOJ).

Legal status / controversies

Charged: by criminal complaint on June 24, 2020, with wire fraud, bank fraud and conspiracy to commit wire fraud and bank fraud, along with Ross Charno; DOJ announced the charges on August 6, 2020. A criminal information followed on November 10, 2021.
Pleaded guilty: to conspiracy to commit wire fraud in the Northern District of Ohio in mid-December 2021. DOJ's releases give the date as December 14 in one and December 15 in another.
Sentenced: May 6, 2022: ten years in prison, three years of supervised release, the restitution and forfeiture above. Augustin was sentenced the same day to six and a half years and $5,910,277.72 in restitution.

Where they are now (2025–2026)

DOJ reported in January 2023, in a related case, that Stote had been sentenced to 10 years. We have no later record of him.

Sources held in this archive

Keyaira Bostic — borrower and recruiter who paid him a kickback; convicted at trial