A federal judge in Birmingham, Alabama, sentenced two men to prison for their roles in a scheme to defraud the Small Business Administration’s Paycheck Protection Program (PPP).
38-year-old Kenzarian Lemark Harris was sentenced to 36 months in prison for PPP loan fraud. Harris pleaded guilty in November 2023 to wire fraud.
According to the plea agreement, in February 2021 Harris submitted false and fraudulent PPP loan applications and received a PPP loan totaling more than $20,833. Harris’ loan application included fraudulent tax and bank records and several misrepresentations – including that his business was in operation, that the business had employees for whom it paid salaries, that the PPP funds would be used to retain workers, and that the information provided in the loan applications was true and accurate.
The court separately sentenced 26-year-old Reginald Dewayne Rhodes, Jr. to 18 months in prison for PPP loan fraud. Rhodes pleaded guilty in October 2023 to wire fraud.
According to the plea agreement, between April and June 2021, Rhodes applied for and received a fraudulent PPP loan in the amount of $11,770. Rhodes claimed to own and operate a carpet cleaning business that did not exist, and his application included fraudulent tax and bank records.
In addition to their prison sentences, the court ordered both Harris and Rhodes to pay restitution to the U.S. Small Business Administration in the full amount of the PPP loans, plus interest.
The U.S. Secret Service investigated the cases, which Assistant U.S. Attorney Jonathan “Jack” Harrington prosecuted.
Key Facts
- State: Alabama
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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