A Charlotte businessman, Evan Agustin Perez, 35, has admitted to running a brazen scheme to siphon off over $720,000 in COVID-19 relief funds. Perez pleaded guilty to wire fraud conspiracy, a charge stemming from a calculated effort to exploit the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) programs. The feds say Perez wasn’t alone; he worked with at least one accomplice, Edward Whitaker, and others to fleece taxpayers.
The scam, which ran from April 2020 to September 2021, involved a network of businesses controlled by Perez. These included Augie’s Wish Foundation, EMP Haircare, LLC, and several barber shops and a daycare center. Federal prosecutors allege Perez and his crew fabricated key details on loan applications – inflating income, employee numbers, and revenues – to qualify for funds they didn’t deserve. It was a systematic effort to lie to the Small Business Administration (SBA) and the banks backing these crucial programs.
Whitaker, already facing charges in the Eastern District of North Carolina, previously pleaded guilty to money laundering conspiracy for his role in a broader, multi-million dollar fraud operation involving bogus disaster relief claims. The connection between Whitaker and Perez indicates a potentially larger network of individuals exploiting the pandemic-era aid programs. While authorities haven’t released the names of the other co-conspirators, the scale of the operation suggests a coordinated effort.
The $720,000 wasn’t a rounding error. It represents real money intended to keep legitimate businesses afloat during the height of the pandemic. Instead, it lined the pockets of Perez and his partners. The feds, led by the SBA Office of Inspector General, meticulously untangled the web of false documents and fraudulent applications, eventually leading to Perez’s guilty plea. The investigation highlighted the vulnerability of the relief programs to exploitation.
Perez now faces a stiff penalty for his crimes. While sentencing hasn’t been scheduled, the maximum statutory penalty for wire fraud conspiracy is substantial. He’ll likely face years behind bars, along with hefty fines and restitution orders. The feds are determined to recover the stolen funds and hold those responsible accountable for their actions.
This case is being prosecuted by Assistant U.S. Attorneys Daniel Ryan and Eric A. Frick, with support from the COVID-19 Fraud Enforcement Task Force, a multi-agency effort aimed at combating fraud related to government relief programs. The Task Force is actively investigating thousands of cases nationwide, seeking to recoup billions of dollars lost to scammers. Anyone with information about COVID-19 fraud is urged to report it to the SBA Office of Inspector General.
The SBA Office of Inspector General played a critical role in uncovering the scheme. Their investigators painstakingly reviewed loan applications, financial records, and other documentation, identifying discrepancies and tracing the flow of funds. This case serves as a stark reminder that fraud will be investigated, and those who attempt to profit from disaster will face the full force of the law.
The feds are sending a clear message: exploiting a national crisis for personal gain will not be tolerated. Perez’s guilty plea is just one step in a larger effort to hold accountable those who preyed on the pandemic and stole vital resources from those who needed them most. The investigation remains ongoing, and further charges are possible.
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