Chicago Man Gets 6.5 Years for $3.3M Covid Scam

MONTGOMERY, AL – A Chicago-area man is trading his suburban life for a federal cell after a judge slammed him with a six-and-a-half-year sentence for a brazen $3.3 million Covid-19 relief scam. The feds say David A. Zeller, of Illinois, systematically looted programs designed to help struggling Americans during the height of the pandemic.

Zeller, age not specified in court documents, wasn’t building a business or saving jobs. Instead, he allegedly filed fraudulent applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds, fabricating employee rosters and payroll records. The scheme spanned multiple shell companies, designed to funnel the money directly into his pockets. According to federal prosecutors, Zeller treated the Covid relief funds like a personal ATM.

U.S. Attorney Andrew S. Boutros for the Middle District of Alabama, announced the sentence following a court hearing this week. “This wasn’t a mistake or an oversight,” Boutros stated. “This was a calculated and deliberate attempt to exploit a national crisis for personal gain. The sheer audacity of the $3.3 million theft is staggering.” Boutros’ office has signaled a renewed focus on prosecuting Covid-19 fraud cases, indicating more indictments are likely on the horizon.

The investigation, led by the Federal Bureau of Investigation and other federal agencies, uncovered a complex web of falsified documents and shell companies. Prosecutors presented evidence showing how Zeller used the fraudulently obtained funds for lavish personal expenses – details of which have not been fully released but are rumored to include high-end vehicles and real estate. The feds built a solid case, and Zeller ultimately pleaded guilty to the charges.

Zeller was sentenced to 78 months in prison, followed by three years of supervised release. He was also ordered to pay full restitution of the $3.3 million he stole. The case serves as a stark reminder that even years after the peak of the pandemic, the feds are still actively pursuing those who exploited the crisis for financial gain. This sentencing should send a message: stealing from Covid relief programs will carry serious consequences.

The Middle District of Alabama, while often associated with drug and violent crime, is increasingly becoming a hub for white-collar prosecutions. Boutros’ office has been aggressive in pursuing financial crimes, and this Zeller case is just the latest example. Grimy Times will continue to follow this story and report on any further developments in the ongoing crackdown on Covid-19 fraud.

RELATED: Sharon Man Gets 5+ Years for Cocaine Trafficking, Firearm Violations

RELATED: Chicago Carjacker Gets 78 Months – High-Speed Chase Ends in Federal Lockup