Eastern District of Texas joins DOJ Fraud Division, SBA, and SBA OIG in COVID-Era Loan Takedown Exceeding $245 million in Fraud

Press release — Eastern District of Texas joins DOJ Fraud Division, SBA, and SBA OIG in COVID-Era Loan Takedown Exceeding $245 million in Fraud, dated 2026-09-14, issued by U.S. Attorney’s Office, Eastern District of Texas.

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{"metadata":{"responseInfo":{"status":200},"resultset":{"count":"1","pagesize":20,"page":0},"executionTime":0.0065560340881347656},"results":[{"attachment":"","body":"PLANO, Texas \u2013The U.S. Attorney\u0027s Office for the Eastern District of Texas today announced results as part of a nationwide enforcement action led by the Justice Department\u2019s National Fraud Enforcement Division, the Small Business Administration, and the SBA Office of Inspector General targeting fraud in the SBA\u2019s Paycheck Protection Program (PPP).\u0026nbsp; The Eastern District of Texas was a key participant in this surge effort.\u202f\u202f\u0026nbsp;From June 12 to September 1, federal prosecutors\u202facross the country\u202ffacilitated\u202ffraud enforcement actions involving\u202fover 160 defendants and approximately\u202f$245\u202fmillion\u202fin intended loss to American taxpayers.\u202f\u202f\u201cIn the Eastern District of Texas, we will spare no effort to recover ill-gotten gains,\u201d said U.S. Attorney Jay R. Combs.\u0026nbsp; \u201cThese funds were intended to keep small businesses alive, not fund the lifestyles of individuals taking advantage of the programs.\u201d\u202f\u0026nbsp;\u201cPandemic loan relief was meant to keep American small businesses alive during government lockdowns\u2014not line the pockets of fraudsters,\u201d said Attorney General Todd Blanche. \u201cThe defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications\u2014 but they will now be prosecuted to the fullest extent of the law.\u201d\u201cThis summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,\u201d said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. \u201cOur mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day\u2014standing shoulder-to-shoulder with our partners\u2014to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.\u201d\u201cToday\u2019s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we\u2019re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,\u201d said SBA Administrator Kelly Loeffler. \u201cWith demand letters going out to suspected fraudsters, we\u2019re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.\u201d\u201cOperation No Doze brings a focused and coordinated approach to pursuing fraud in SBA\u2019s pandemic relief programs,\u201d said SBA Inspector General William Kirk. \u201cBy concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.\u201dIn the Eastern District of Texas, U.S. Attorney Jay R. Combs announced that three defendants have pleaded guilty and are awaiting sentencing.\u0026nbsp; Two other defendants have been set for trial.On August 12, 2026, Weldon Greer, Jr., 61, of Houston, pleaded guilty to conspiracy to commit wire fraud and faces up to 30 years in federal prison.\u0026nbsp; According to information presented in court, from 2020 through 2021, Greer conspired to fraudulently obtain dozens of PPP and EIDL loans by submitting falsified supporting documentation to the SBA.\u0026nbsp; The total loss to the SBA was at least $8,394,561.\u0026nbsp;Greer\u2019s co-conspirator, Jarrod Durant Wilburn, 58, of Houston, has also been charged and is set for trial on October 13, 2026, in Beaumont.\u0026nbsp; This case is being prosecuted by Assistant U.S. Attorney Donald Carter.\u0026nbsp;On August 13, 2026, Thomas Flanagan, 66, of Beaumont, was indicted by a federal grand jury and charged with four counts of wire fraud.\u0026nbsp; According to the indictment, Flanagan is alleged to have submitted falsified applications for forgiveness of PPP loans for two businesses, James Flanagan Shipping Corporation and P.C. Pfeiffer Co. Inc., resulting in a loss to the SBA of $1,514,917.\u0026nbsp; If convicted, Flanagan faces up to 20 years in federal prison.\u0026nbsp; Flanagan is set for trial in January of 2027 in Beaumont.\u0026nbsp; This case is being prosecuted by Assistant U.S. Attorney Jim Noble.\u0026nbsp; \u0026nbsp;Craig Bennett, 51, and his wife, Chemika Bennett, 53, of Celina, pleaded guilty to conspiracy to commit wire fraud.\u0026nbsp; The Bennetts applied online for PPP loans under their own names, as well as business names using fraudulent statements and information claiming the loans would be used for business expenses and employee payroll.\u0026nbsp; However, the Bennetts did not have employees or business expenses, and the loans were sued for their personal expenses.\u0026nbsp; The loss to the SBA is $697,000.\u0026nbsp; \u0026nbsp;The couple faces up to 20 years in federal prison and will be sentenced on November 10, 2026, in Sherman.\u0026nbsp;These cases were investigated by the SBA \u2013 Office of Inspector General and the FBI.\u202f\u0026nbsp;On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (\u201cFraud Division\u201d). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department\u2019s work to combat fraud supports President Trump\u2019s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to\u202feliminate\u202ffraud, waste, and abuse within Federal benefit programs.\u202f\u202f\u0026nbsp;\u202f\u202f\u0026nbsp;An indictment, information, or complaint\u202fis merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.\u202f\u202f\u0026nbsp;\u0026nbsp;###","changed":"\u003Ctime datetime=\u00222026-09-14T17:30:05-04:00\u0022\u003E1789421405\u003C\/time\u003E\n","component":[{"uuid":"dca09ceb-4978-4466-9c30-ce9f5ada2f0a","name":"Federal Bureau of Investigation (FBI)"},{"uuid":"7640bef5-117f-47d2-9226-572020e05213","name":"USAO - Texas, Eastern"}],"created":"\u003Ctime datetime=\u00222026-09-14T17:21:54-04:00\u0022\u003E1789420914\u003C\/time\u003E\n","date":"1789387200","image":"","number":"","teaser":"\u003Cp\u003EThe U.S. Attorney\u0027s Office for the Eastern District of Texas today announced results as part of a nationwide enforcement action led by the Justice Department\u2019s National Fraud Enforcement Division, the Small Business Administration, and the SBA Office of Inspector General targeting fraud in the SBA\u2019s Paycheck Protection Program (PPP).\u0026nbsp; The Eastern District of Texas was a key participant in this surge effort.\u202f\u202f\u0026nbsp;\u003C\/p\u003E","title":"Eastern District of Texas joins DOJ Fraud Division, SBA, and SBA OIG in COVID-Era\u202fLoan Takedown\u202fExceeding $245\u202fmillion\u202fin Fraud\u202f\u202f ","topic":[{"uuid":"32b4d47b-2142-420c-9aae-28f7bf2c86d4","name":"Fraud"},{"uuid":"6827a162-b783-4ffa-a6c2-596fc9f07e39","name":"COVID-Related Fraud"}],"url":"https:\/\/www.justice.gov\/usao-edtx\/pr\/eastern-district-texas-joins-doj-fraud-division-sba-and-sba-oig-covid-era-loan","uuid":"8457b175-f3a6-4d09-881f-a50f7023498d"}]}

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