FAYETTEVILLE, Arkansas – In a stunning turn of events, Julia Youngblood and Fawaad Welch, a Florida couple formerly residing in Northwest Arkansas, were sentenced to over nine years combined in federal prison for their involvement in a scheme to defraud pandemic relief loan programs.
Youngblood, 41, was handed down a sentence of 15 months behind bars, followed by one year of supervised release, and ordered to pay $6,131,511.16 in victim restitution. Welch, also 41, was sentenced to 97 months in federal prison, with three years of supervised release, and the same amount of restitution.
The sentencing was presided over by Honorable Judge Timothy L. Brooks at the United States District Court in Fayetteville. The fraudulent activities were carried out through their Arkansas-based business, Slipstream Creative, LLC, an advertising and marketing company located in Fayetteville.
According to court documents, the duo applied for Pandemic Relief Loan Programs between May 2020 and October 2021, providing false statements about their assets and liabilities. Welch then arranged for his wife, Youngblood, to sign applications on behalf of the business. The couple siphoned off large parts of the loan proceeds into personal accounts, including using $445,000 to purchase a home in Florida.
Welch and Youngblood pleaded guilty after waiving indictment by a grand jury. Following their prison terms, the Government forfeited over $1.2 million from their accounts. The investigation was conducted by the FBI, Office of Inspector General for the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, and Special Inspector General for Pandemic Relief.
U.S. Attorney David Clay Fowlkes announced the sentencing, which follows the Fraud Section’s prosecution of over 150 defendants in more than 95 criminal cases involving pandemic relief fraud. More information can be found at Justice.gov/OPA/pr/justice-department-takes-action-against-covid-19-fraud.
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Key Facts
- State: Arkansas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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