U.S. Department of Labor OIG, Two Georgians indicted for pandemic-related fraud (USAO ND-GA 05/19/2023) (2023-05-19)

Summary

A press release from the U.S. Attorney's Office, Northern District of Georgia, dated May 19, 2023, announcing indictments in two separate pandemic fraud cases. Kenneth Wilkerson, 39, of Atlanta, was charged in a 16-count superseding indictment with firearm possession by a convicted felon, bank fraud, wire fraud and money laundering counts, and allegedly sought more than $800,000 in PPP and EIDL funds for seemingly defunct businesses, receiving more than $383,000. Jeremy Graves, 38, of Atlanta, was charged in a 26-count indictment with 11 counts of wire fraud, eight counts of aggravated identity theft and seven counts of theft of government funds. Graves allegedly used stolen identities to obtain over $230,000 in unemployment insurance benefits in states including Georgia, California, Maryland and Nevada.

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PRESS RELEASE



Two Georgians indicted for
pandemic-related fraud
Friday, May 19, 2023

For Immediate Release
U.S. Attorney's Office, Northern District of Georgia

ATLANTA – A federal grand jury has indicted individuals in two separate cases for fraud
related to the COVID-19 pandemic. Kenneth Wilkerson was indicted for his fraudulent
acquisition of several Paycheck Protection Program (PPP) loans and Economic Injury
Disaster Loans (EIDL) for small businesses as well as his illegal possession of multiple
firearms. Jeremy Graves was indicted for filing multiple fraudulent applications for
unemployment insurance benefits using victims’ stolen personal identifying information.

“While communities suffered from the effects of the pandemic, the federal government
worked to help small businesses and individuals avoid catastrophic economic disaster
through the CARES Act,” said U.S. Attorney Ryan K. Buchanan. “We will continue to
investigate and prosecute those who illegally obtained these loans and work diligently
to recover these funds intended to support struggling business owners and families.”

Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division stated, “No
matter how much Wilkerson tried to conceal his money laundering activities behind
Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds, this
was a drug trafficking operation, generating hundreds of thousands of dollars in illicit
proceeds.”

“The defendant allegedly chose to illegally possess firearms,” said Alisha Jones, Assistant
Special Agent in Charge of ATF’s Atlanta Field Division. “We will continue to pursue
those who seek to circumvent the law.”

“An important part of the mission of the Office of Inspector General is to investigate
allegations of fraud related to unemployment insurance programs. We will continue to
work with our law enforcement partners to aggressively investigate these types of
allegations,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S.
Department of Labor Office of Inspector General.
According to U.S. Attorney Buchanan, the indictments, and other information presented
in court: Kenneth Wilkerson allegedly submitted at least nine loan applications to
financial institutions, authorized lenders, and the Small Business Administration that
contained fraudulent information regarding gross revenues and fake employees at his
various companies. He also allegedly submitted fraudulent tax forms and bank
statements to support his loan applications. Wilkerson allegedly received more than
$383,000 from Paycheck Protection Program (PPP) loans and Economic Injury Disaster
Loans (EIDL) that he failed to spend on authorized business purposes.

Jeremy Graves allegedly used stolen identification documents to apply for and obtain
unemployment insurance (UI) benefits – a program that was expanded during the
COVID-19 pandemic with CARES Act funds, in multiple states, including Georgia,
California, Maryland, and Nevada. In his applications, Graves listed various addresses,
including his own, as the applicant’s mailing address. Debit cards loaded with UI benefits
were then mailed to those addresses. Graves allegedly called the bank associated with
the debit cards to activate the cards, request new cards, and make other inquiries. The
individuals whose identities were stolen and used to apply for the UI benefits did not
apply, or give anyone permission to apply, for UI benefits on their behalf. Graves
allegedly received over $230,000 in UI benefits to which he was not entitled.

Kenneth Wilkerson, 39, of Atlanta, Georgia, was charged in a 16-count superseding
indictment with two counts of possession of a firearm by a convicted felon, two counts
of bank fraud, eleven counts of wire fraud, and one count of money laundering.
Wilkerson allegedly submitted fraudulent applications seeking more than $800,000 in
PPP and EIDL funds for various, seemingly defunct businesses.

Jeremy Graves, 38, of Atlanta, Georgia, was charged in a 26-count indictment with 11
counts of wire fraud, eight counts of aggravated identity theft, and seven counts of theft
of government funds. Graves allegedly applied for and obtained UI benefits in multiple
states using stolen identities.

Members of the public are reminded that the indictment only contains charges. The
defendants are presumed innocent of the charges and it will be the government’s
burden to prove the defendants’ guilt beyond a reasonable doubt at trial.

The Kenneth Wilkerson case is being investigated by the Internal Revenue Service
Criminal Investigation, the Drug Enforcement Administration, and the Bureau of Alcohol,
Tobacco, Firearms and Explosives.

The Jeremy Graves case is being investigated by the Department of Labor – Office of
Inspector General.
Assistant U.S. Attorneys Rebeca M. Ojeda and Mary Webb are prosecuting Kenneth
Wilkerson. Special Assistant U.S. Attorney Diane C. Schulman is prosecuting Jeremy
Graves.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement
Task Force to marshal the resources of the Department of Justice in partnership with
agencies across government to enhance efforts to combat and prevent pandemic-
related fraud. The Task Force bolsters efforts to investigate and prosecute the most
culpable domestic and international criminal actors and assists agencies tasked with
administering relief programs to prevent fraud by, among other methods, augmenting
and incorporating existing coordination mechanisms, identifying resources and
techniques to uncover fraudulent actors and their schemes, and sharing and harnessing
information and insights gained from prior enforcement efforts. For more information
on the Department’s response to the pandemic, please
visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can
report it by calling the Department of Justice’s National Center for Disaster Fraud
(NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form
at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For further information please contact the U.S. Attorney’s Public Affairs Office
at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S.
Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-
ndga.

Updated May 19, 2023

Topic
CORONAVIRUS


Component
USAO - Georgia, Northern


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