CHARLESTON, S.C. – Five of eight individuals who were charged for their role in a COVID-19 loan fraud scheme have been sentenced, leaving the community wondering how they got away with ripping off $295,841 in federal relief funds.
In March 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to help businesses impacted by COVID-19 continue paying their employees. The CARES Act authorized the Small Business Administration (SBA) to issue emergency advances, also referred to as grants, of up to $10,000.00 depending on the number of employees a small business employed.
The evidence presented to the court showed that the defendants devised and participated in a scheme to defraud the Small Business Administration, and its approved third-party lenders, in their application and receipt of Paycheck Protection Program (PPP) loan funds and Emergency Injury Disaster Loans (EIDL) advances. The defendants submitted fraudulent loan documents, which included the creation of fraudulent companies as well as the submission of falsified tax documentation, to induce the SBA and its third-party lenders to fund the loans.
The five individuals sentenced this week were:
- Staci Harley, 41, of Summerville, was sentenced to three years after pleading guilty to wire fraud.
- Anthony Harley, 40, of North Charleston, who was an inmate incarcerated with the South Carolina Department of Corrections at the time he committed these offenses, was sentenced to two years after pleading guilty to wire fraud.
- Benjamin Blue, 42, of Summerville, was sentenced to one year and one day after pleading guilty to wire fraud.
- Sheniqua Mitchell, 37, of North Charleston, was sentenced to 33 months after pleading guilty to wire fraud.
- Roberta Harley, 61, of North Charleston, received a time-served sentence after pleading guilty to conspiracy to commit wire fraud.
U.S. Attorney Adair F. Boroughs praised the sentencings, citing them as a victory against a large-scale criminal operation that tormented the Charleston area with illegal drugs, guns, and financial crimes. The Secret Service, FBI, and SBA OIG also weighed in, highlighting the seriousness with which the government handles financial crimes and warning those who aspire to exploit government relief programs that they will be held accountable.
The investigation and prosecution of this case demonstrate the commitment of law enforcement agencies to protecting the integrity of SBA’s programs and ensuring that fraud is met with the full force of the law. As the community continues to heal from the wounds of the COVID-19 pandemic, it’s clear that those who sought to take advantage of the system will be brought to justice.
With the COVID-19 loan fraud scheme now behind bars, it’s a stark reminder that those who try to deceive and exploit the system will be caught and punished. As the nation moves forward, it’s essential to maintain a strong commitment to transparency and accountability in government relief programs to prevent similar schemes from emerging in the future.
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Key Facts
- State: South Carolina
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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