Darrell Baker, Bank Fraud, Michigan 2020

Darrell Baker, 56, Sentenced to 24 Months in Prison for Covid-19 Fraud Scheme

Detroit, Michigan – A Detroit resident, Darrell Baker, has been sentenced to 24 months in federal prison on charges of bank fraud and money laundering arising out of a $590,000 Covid-19 fraud scheme, announced Acting United States Attorney Saima Mohsin.

The charges stem from Baker’s effort to obtain $590,000 by defrauding a Pennsylvania financial institution in the issuance of a "Paycheck Protection Program" (PPP) loan. Baker pleaded guilty in September, 2020 to one count of bank fraud and one count of money laundering.

Baker applied for and obtained a $590,000 PPP loan on behalf of a purported business that he owns, called "Motorcity Solar Energy, Inc." The PPP is a program managed by the Small Business Administration (SBA) that provides loans to help businesses keep their workforces employed during the pandemic.

Baker submitted paperwork with his loan application representing that Motorcity Solar Energy Inc. had 68 employees and paid wages, tips, and other compensation totaling $2.8 million in 2019. All of these representations were in fact false. Baker used the funds he did obtain to purchase four cashier’s checks, and used the four checks to purchase two Cadillac Escalades, a Dodge Charger, and a Hummer. He was ordered to forfeit these vehicles, pay a money judgment in the amount of $172,484.40, and pay restitution in the amount of $89,864.

"Mr. Baker treated the PPP like his own personal bank account," said Acting US Attorney Mohsin. "This defendant’s actions caused the diversion of essential funds earmarked for legitimate businesses suffering due to the COVID-19 pandemic for his own personal gain. We are committed to ensuring that anyone who takes advantage of the system will be prosecuted."

The case was prosecuted by Assistant United States Attorney John K. Neal. The investigation was conducted jointly by the FBI and the SBA’s Office of Inspector General.

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.

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