A Great Falls man with a history of felony convictions has been found guilty of wire fraud and money laundering for his role in abusing COVID relief funds. Raymond Marcellous Blair, 45, was convicted by Chief U.S. District Judge Brian M. Morris following a one-day bench trial.
Blair faces up to 20 years in prison on the wire fraud charge and up to ten years in prison on each money laundering count, as well as a $250,000 fine, and three years of supervised release. The sentencing is set for January 28, 2026, and Blair was released on conditions pending sentencing.
According to court documents, Blair applied for COVID relief in the form of an Economic Injury and Disaster Loan (EIDL) from the Small Business Administration (SBA) in August 2020. He claimed his business had gross revenues of $249,000, which was false, and also falsely stated that he had not been convicted of a felony or placed on probation within the last five years.
In reality, Blair was convicted of aggravated assault in 2011 and of failing to register as a violent offender in 2017, and was on probation in 2020 when he applied for the EIDL loan. The SBA approved his loan application and wired $99,900 into his bank account on September 1, 2020. Blair then transferred more than $10,000 out of the account on two occasions and spent the majority of the loan proceeds on personal expenses.
The government alleged that Blair’s actions constituted wire fraud and money laundering, and the court agreed. Assistant U.S. Attorney Benjamin D. Hargrove prosecuted the case, which was investigated by the Small Business Administration Office of Inspector General.
The conviction is a significant victory for the government in its efforts to crack down on COVID relief abuse. The case highlights the importance of verifying the accuracy of information provided by applicants for COVID relief funds and the need for strong enforcement mechanisms to prevent and punish fraud.
As Blair awaits sentencing, the community is left to wonder how someone with a history of felony convictions was able to so easily manipulate the system and obtain COVID relief funds. The case raises questions about the effectiveness of the SBA’s vetting process and the need for greater oversight and accountability in the distribution of COVID relief funds.
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Key Facts
- State: Montana
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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