Phoenix Man Sentenced to Prison for Fraudulently Obtaining $1 Million in PPP Loans

Summary

Jamar Johnson, 54, of Phoenix was sentenced by United States District Judge Sharad H. Desai to 15 months in prison and three years of supervised release after pleading guilty to wire fraud, the U.S. Attorney's Office for the District of Arizona announced. Johnson admitted submitting false Paycheck Protection Program applications for his entity, CBL Worldwide II; one stated 73 employees and over $4.8 million in annual payroll expenses, when the company had zero employees and no payroll. He received two PPP loans totaling $1,007,650 and spent the money on himself, including cryptocurrency, a vehicle and cosmetic dentistry. He was ordered to pay full restitution to the Small Business Administration. Homeland Security Investigations investigated, with assistance from the SBA Office of Inspector General, in case 25-CR-00738-PHX-SHD.

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PHOENIX, Ariz. – A Phoenix man who received over $1 million in Paycheck Protection Program (PPP) loans by submitting fraudulent applications was sentenced yesterday by United States District Judge Sharad H. Desai to 15 months in prison, followed by three years of supervised release. Jamar Johnson, 54, previously pleaded guilty to Wire Fraud. Johnson admitted that he submitted false applications in order to obtain PPP loans on behalf of his entity, CBL Worldwide II. For example, in one of the applications, Johnson stated that the company had 73 employees and over $4.8 million in annual payroll expenses. In reality, CBL Worldwide II had zero employees and no payroll expenses. As a result of his fraudulent misrepresentations, Johnson received two PPP loans totaling $1,007,650. Johnson spent the money on himself, including by purchasing cryptocurrency, a vehicle, and cosmetic dentistry. At sentencing, Johnson was ordered to pay full restitution to the Small Business Administration (SBA). The Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted in March 2020 to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief under the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program. On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs. Homeland Security Investigations conducted the investigation in this case, with substantial assistance from the SBA, Office of Inspector General. The U.S. Attorney’s Office, District of Arizona, Phoenix, handled the prosecution. CASE NUMBER: 25-CR-00738-PHX-SHD RELEASE NUMBER: 2026-141_Johnson # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

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