A repeat offender, 40-year-old Joseph Cherry of Norfolk, Virginia, has been sentenced to 51 months in prison for engaging in a COVID-19 related loan fraud scheme, resulting in losses of nearly $200,000.
The scheme involved submitting multiple applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans, providing false information about his claimed businesses, income, employment, and criminal record.
As a result of these false applications, Cherry fraudulently obtained $196,900 in loan proceeds from the U.S. Treasury. In a brief period of time in April 2020, Cherry withdrew over $100,000 in the form of cash and a cashier’s check and made various purchases inconsistent with the purposes of the PPP and EIDL programs.
Cherry previously was convicted in the Eastern District of Virginia in 2009 for an extensive fraud, money laundering, and identity theft scheme involving losses of over $1.5 million. He has been convicted of over a dozen felony charges in federal and state courts since 2002, and he was under terms of supervision in both federal and state courts when he committed these additional fraud offenses in 2020.
“During a global pandemic, the defendant took advantage of aid programs intended to provide critical relief for hardworking members of our communities impacted by the COVID-19 outbreak,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office will continue to hold accountable individuals who exploit and disadvantage others in order to unlawfully enrich and advantage themselves.”
Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
The announcement was made after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Related Federal Cases
- Jeffrey Phares, Cemetery Fraud, West Virginia, 2023 · West Virginia
- Sark Wire Corporation, PPP Fraud, Albany NY, 2023 · New York
- James Pavlounis, Social Security Disability Benefits Fraud, New York 2023 · Ohio
- Kenneth Thom, Investment Adviser Fraud, New York NY, 2026 · New York
- Jeffrey Phares, Wire Fraud Scheme, Fayetteville WV, 2023 · West Virginia
Key Facts
- State: Virginia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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