Memphis Man Sentenced for Defrauding COVID-19 Relief Fund of More Than $2,000,000 — USAO Tennessee, Western

Summary

A press release published 2024-08-08 by the United States Attorney for the Western District of Tennessee announcing that Dardanius Coleman, 55, of Memphis was sentenced to 21 months in federal prison for defrauding the Paycheck Protection Program. According to information presented in court as described in the release, from April 2020 through November 2021 Coleman submitted fraudulent PPP applications for five purported businesses he controlled, with false employee and payroll information and fake documents, and used the proceeds for his personal benefit. The office states that Coleman pleaded guilty to wire fraud and that United States District Judge Thomas L. Parker ordered $2,093,318 in restitution to the SBA and a three-year term of supervision.

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“Memphis Man Sentenced for Defrauding COVID-19 Relief Fund of More Than $2,000,000 — USAO Tennessee, Western.” Original at www.justice.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-08-08-memphis-man-sentenced-for-defrauding-covid-19-relief-fund-o-080eb1e763/, SHA-256 48d8ef486110752e0c4e68c8c0adc06b70f0ab27edbc4181287007f2c4ddbec1.

Full text

Memphis, TN
–
Dardanius Coleman
,
55
, of Memphis, was sentenced to 21 months in federal prison for defrauding the Paycheck Protection Program (PPP), a federal program administered by the Small Business Administration (SBA) designed to provide emergency financial assistance to small businesses affected by the COVID-19 pandemic. Kevin G. Ritz, United States Attorney for the Western District of Tennessee, announced the sentence today.
United States Attorney Ritz said: “This federal program was designed to lift hardworking citizens and small businesses in a time of need. Instead, the defendant in this case cheated the program and misused relief funds. I commend our federal law enforcement partners for helping to bring this defendant to justice. This office will continue to vigorously prosecute those who defraud COVID-19 relief programs.”
According to information presented in court, from April 2020 through November 2021, Coleman submitted fraudulent PPP applications for five purported businesses that he controlled. These applications contained false information and fake documents concerning the number of employees and the amount of payroll related to the purported businesses. Once Coleman received the loan proceeds, the monies were used for his personal benefit, not for the approved purposes for the funds such as rent or paying his employees.
This case was investigated by the Federal Bureau of Investigation (FBI) and the SBA Office of Inspector General.
“As we’ve seen in the aftermath of the COVID-19 pandemic, criminals will exploit any opportunity to take advantage of programs intended to help businesses and individuals,” said Special Agent in Charge Joseph E. Carrico of FBI Tennessee. “This sentencing demonstrates the ongoing commitment and dedication of the FBI to work with our partners to aggressively hold individuals accountable who perpetrate fraud against the American people.”
“This sentencing underscores our unwavering commitment to protecting the integrity of SBA programs,” said SBA – Office of the Inspector General’s Eastern Region Special Agent in Charge, Amaleka McCall-Braithwaite. “Fraudulent activities undermine the purpose of these essential programs, designed to support legitimate small businesses struggling during the pandemic. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their support and dedication to ensuring that those who exploit federal programs are held accountable.”
Coleman previously entered a guilty plea to a count of wire fraud. As a part of the sentence imposed, United States District Judge Thomas L. Parker also ordered Coleman to pay $2,093,318 in restitution to the SBA and serve a three-year term of supervision after release from custody.
United States Attorney Kevin G. Ritz thanked Assistant United States Attorney Tony Arvin, who prosecuted this case, as well as the law enforcement partners who investigated the case.
###
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or more information, please contact the Media Relations Team at
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Our copy: 2024-08-08_memphis-man-sentenced-for-defrauding-covid-19-relief-fund-of-more-than-2_c9937212.md.txt
Original: www.justice.gov