Emanuel Tucker, COVID-19 Relief Fraud, California 2022

A California man pleaded guilty yesterday for his role in a scheme to defraud the Small Business Administration (SBA) out of $15.9 million in loans through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs.

According to court documents, Emanuel Tucker, 45, of Canyon Lake, California, and other co-conspirators, submitted several dozen fraudulent PPP and EIDL loan applications on behalf of various companies that he owned and controlled from April 2020 to April 2022.

The applications contained material misrepresentations about the companies, including the number of employees, average monthly payroll, gross revenue, cost of goods, and supporting documents. The defendant used the fraudulently obtained funds to purchase a variety of luxury items, such as a Cadillac Escalade, a Bentley Continental, and a Ferrari F8 Tributo, multiple million-dollar houses, and various jewelry, including a $63,000 diamond ring and a $400,000 diamond necklace.

“The defendant orchestrated a scheme where he worked with purported business owners to submit dozens of loan applications to steal millions of dollars of Covid-19 relief funds,” said Acting Assistant Attorney General Matthew R. Galeotti of the Criminal Division. “The defendant’s egregious scheme relied on layers of deception to steal taxpayer money to buy himself luxury vehicles, residential properties, and jewelry. The Criminal Division remains dedicated to holding fraudsters who steal from the public fisc to account for their greed.”

Tucker pleaded guilty to conspiracy to commit wire fraud and bank fraud. Tucker faces a maximum penalty of 20 years in prison, and sentencing is scheduled for December 4.

“Exploiting pandemic relief meant for struggling Americans is not only morally reprehensible, it’s a betrayal of public trust,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “This defendant orchestrated a multimillion-dollar fraud scheme, weaponizing federal COVID-19 assistance programs for his personal gain. The FBI will always work to make sure those who steal from programs designed to help others are held accountable.”

Source: https://www.justice.gov/opa/pr/california-man-pleads-guilty-role-159m-covid-19-fraud-scheme