An Atlanta man who obtained COVID-19 relief funding through fake documents has been sentenced to prison and ordered to repay the money.
Kemar Clarke Jr., 28, of Atlanta, has been sentenced to eight months in prison and ordered to pay $41,665 in restitution, according to Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Clarke to serve three years of supervised release upon completion of his prison term.
‘When Congress approved relief funding for small businesses struggling during the COVID-19 pandemic, far too many people saw it as an opportunity to cash in at the expense of deserving business owners,’ said U.S. Attorney Steinberg. ‘We are committed to holding accountable those who defraud American taxpayers.’
The Coronavirus Aid, Relief, and Economic Security (CARES) Act authorized the Small Business Administration to provide and/or guarantee loans to keep small businesses afloat during the pandemic’s financial challenges. One of the programs provided forgivable loans through the Paycheck Protection Program (PPP).
As described in court documents and testimony, agents from the Department of the Army Criminal Investigative Division at Fort Stewart determined that Clarke had fraudulently obtained a PPP loan for a non-existent barber shop and paid an $8,000 kickback to another individual for submitting the application on his behalf.
The investigation also determined that Clarke had fraudulently obtained PPP funding for $20,832 – the maximum amount available to a sole proprietor. The restitution amount reflects the total PPP payouts.
‘Unscrupulous actors engaged in PPP fraud have pilfered taxpayer dollars and undermined public trust in government programs.’ said Steven Ausfeldt, Special Agent in Charge of Department of the Army Criminal Investigation Division’s Southeast Field Office. ‘We will continue to aggressively pursue fraudsters who try to defraud the U.S. Army and hold them accountable for exploiting government programs for their own profit.’
The case was investigated by the Department of the Army Criminal Investigative Division and prosecuted for the United States by Assistant U.S. Attorneys Matthew A. Josephson and David H. Estes.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The crime occurred in no specific date mentioned in the source but sentencing occurred in 2024. Kemar Clarke Jr. was charged with fraudulently obtaining COVID-19 relief funding. The case was investigated by the Department of the Army Criminal Investigative Division and prosecuted for the United States by Assistant U.S. Attorneys Matthew A. Josephson and David H. Estes.
Related Federal Cases
- Daniqua Clark, Mail Stream Theft and COVID-19 Relief Fraud, Georgia 2023 · Georgia
- Angela Miller and Lee Lynwood, Tax Return Fraud, Georgia, 2008 · Georgia
- Four Individuals Face Federal Oxycodone Fraud Charges, Georgia, 2023 · Georgia
- Eijroghene Okuma, $10M Investment Fraud, Atlanta GA, 2023 · Puerto Rico
- Sark Wire Corporation, PPP Fraud, Albany NY, 2023 · New York
Key Facts
- State: Georgia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News