Gresham, Oregon resident Justin Allen Cunningham, 41, will spend the next ten months in federal prison after admitting to stealing over $77,000 in COVID-19 relief funds. Cunningham wasn’t helping struggling businesses; he was creating phantom companies to line his own pockets while real businesses were fighting for survival.
The scheme revolved around the Paycheck Protection Program (PPP), a federal lifeline thrown to businesses reeling from pandemic lockdowns. Cunningham allegedly submitted bogus loan applications, fabricating details about nonexistent businesses to fraudulently obtain funds guaranteed by the U.S. Small Business Administration. It’s a familiar story – a blatant abuse of a system designed to help those who genuinely needed it.
Federal prosecutors secured a guilty plea from Cunningham on one count of wire fraud after an indictment handed down in January 2022. The feds weren’t messing around. In addition to the prison sentence, Cunningham has been ordered to pay $81,207 in restitution – meaning he’ll be paying back every penny he stole, plus interest. Whether he’ll actually *have* the means to do so remains to be seen.
The investigation was a multi-agency effort, with the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, and the FBI all contributing. These agencies worked together to untangle the web of lies Cunningham spun and build a solid case. It’s a reminder that these scams, while often complex, rarely leave no trace.
Assistant U.S. Attorneys Ryan W. Bounds and Meredith D.M. Bateman led the prosecution, successfully demonstrating Cunningham’s guilt. The sentence serves as a warning to others considering similar schemes: exploiting a national crisis for personal gain will have serious consequences. The feds are actively pursuing these cases, and they’re not afraid to throw the book at offenders.
This isn’t an isolated incident. The pandemic spawned a wave of fraud, and federal authorities are still working to hold accountable those who preyed on a vulnerable system. If you suspect COVID-19 related fraud, report it immediately to the National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721, or file a complaint online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Don’t let these criminals get away with it.
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