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Sarasota Man Sentenced To More Than Five Years In Prison For COVID-19 Related Fraud

Summary

A press release from the U.S. Attorney's Office for the Middle District of Florida dated July 18, 2022. It announces that U.S. District Judge William F. Jung sentenced Randy Xavier Jones of Sarasota to five years and one month in federal prison for wire fraud and aggravated identity theft, and ordered forfeiture including 12 fraudulently obtained prepaid debit cards. Jones pleaded guilty on March 24, 2022, according to the release. It states that from July 2020 through at least September 2020 Jones obtained a $50,000 EIDL loan in the name of a non-existent entity and unemployment benefits from state workforce agencies in Arizona, California and Nevada, among others, and that Jones and others obtained nearly a half million dollars.

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“Sarasota Man Sentenced To More Than Five Years In Prison For COVID-19 Related Fraud.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-07-21-sarasota-man-sentenced-to-more-than-five-years-in-prison-fo-0f48e04fa5/, SHA-256 8d11721a83fde9a4c6c2d116fe1fb76427c6c6f7845739ac1f1d2d8ef73e8ccf.

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                                      Department of Justice
                                         U.S. Attorney’s Office
                                      Middle District of Florida


FOR IMMEDIATE RELEASE                                                          Monday, July 18, 2022

Sarasota Man Sentenced To More Than Five Years In Prison
              For COVID-19 Related Fraud
Tampa, FL – U.S. District Judge William F. Jung has sentenced Randy Xavier Jones (34, Sarasota) to
five years and one month in federal prison for wire fraud and aggravated identity theft. The court
also ordered Jones to forfeit proceeds traceable to the offense, including 12 fraudulently obtained
prepaid debit cards containing unemployment insurance benefits to which Jones was not
entitled. Jones had pleaded guilty on March 24, 2022.

According to court documents, from July 2020 through at least September 2020, Jones knowingly
engaged in a scheme to defraud several federal and state programs by obtaining COVID-19 related
benefits—both loan proceeds from the Economic Injury Disaster Loan (“EIDL”) program and
unemployment insurance (“UI”) benefits from state workforce agencies—to which he was not
entitled. Specifically, Jones obtained an EIDL loan in the amount of $50,000 in the name of a non-
existent entity. In addition, in response to numerous fraudulent applications filed in multiple states,
Jones obtained UI benefits, loaded on to prepaid debit cards, from state workforce agencies in
Arizona, California, and Nevada, among others. In order to retrieve the proceeds of the scheme,
Jones, a resident of Sarasota, flew to California and, over a period of several weeks, withdrew cash
from the prepaid debit cards that were funded as a result of the fraudulent applications. Through
both schemes, Jones and others obtained nearly a half million dollars.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March
2020. It is designed to provide emergency financial assistance to millions of Americans who are
suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided
by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for
job retention and certain other expenses through the PPP. In April 2020, Congress authorized over
$300 billion in additional PPP funding.

The EIDL program is designed to provide economic relied to small businesses that are currently
experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of
working capital and normal operating expenses, such as continuation of health care benefits, rent,
utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds
cannot be used for the same purpose as the PPP funds.

This case was investigated by the United States Secret Service, the Manatee County Sheriff’s Office,
and the U.S. Department of Labor – Office of Inspector General. It was prosecuted by Assistant
United States Attorney Rachel K. Jones.
Topic(s):                                               Component(s):
Coronavirus                                             USAO - Florida, Middle
Disaster Fraud
Financial Fraud

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