Spokane, Washington – In a brazen case of COVID-19 relief fraud, Jason Carnell O’Daffer, 41, of Wenatchee, Washington, was sentenced to 12 months and one day in federal prison for swindling over $117,000 in government funds meant to help small businesses struggling during the pandemic.
O’Daffer’s scheme involved submitting false applications for Economic Injury Disaster Loan (EIDL) funding under the guise of his home appraisal business, Chelan Douglas Appraisal Services. However, court documents revealed that O’Daffer was not licensed as an appraiser at the time of the application and his business was no longer engaging in home appraisals.
Instead of using the funds to help his business, O’Daffer spent the majority of the $117,400 on personal expenses, including a whopping $39,000 to purchase a recreational vehicle. The RV was just one of many indulgences O’Daffer treated himself to using the government funds.
According to court records, O’Daffer’s EIDL application was submitted on March 27, 2020, just as the CARES Act was signed into law by President Trump. The CARES Act provided forgivable loans to eligible small businesses to retain jobs and maintain payroll during the pandemic.
O’Daffer’s scheme unraveled when he was arrested in San Francisco in December 2022. Following his initial appearance, he absconded from his pretrial release and remained at large until March 2023, when he was arrested again. His lawyer’s feeble attempts to justify his client’s actions were met with disdain by U.S. Attorney Vanessa R. Waldref.
“Mr. O’Daffer’s actions are a slap in the face to the small business owners who genuinely needed these funds to survive the pandemic,” Waldref stated. “We will continue to vigorously prosecute those who abuse and misuse COVID-19 funding.”
O’Daffer’s sentence was handed down by United States District Judge Thomas O. Rice, who also ordered him to serve three years of supervised release following his prison term. The case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force, the U.S. Secret Service, Spokane Resident Office and San Francisco Field Office, and the SBA OIG. Assistant United States Attorneys Jeremy Kelly and Tyler H.L. Tornabene prosecuted the case on behalf of the United States.
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Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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