A brazen scheme to defraud banks and exploit pandemic relief funds has landed a University City business owner behind bars for 30 months.
Le Mell Harlston, 36, used the Social Security number assigned to a minor from the Kansas City, Missouri area and another that had not been assigned to anyone to apply for loans and lines of credit at credit unions and banks.
According to the U.S. Attorney’s office, Harlston applied for Paycheck Protection Program and Economic Injury Disaster Loans offered under the CARES Act, which were intended to help business owners affected by the COVID-19 pandemic.
Harlston applied for EIDL funding for four companies registered to him in July 2020 but used another minor’s Social Security number on the application. He also received multiple PPP loans in February 2021 after certifying that he was only applying for one loan, and lied when asked on the applications whether he was under indictment.
In all, Harlston caused a loss of $653,332, including $551,830 in CARES Act funds. He pleaded guilty in U.S. District Court in August to five counts of bank fraud and nine counts of misuse of a Social Security number.
U.S. District Judge Stephen R. Clark sentenced Harlston to 30 months in prison and ordered him to repay $650,000 that he reaped from the scheme.
Gail S. Ennis, Inspector General for the Social Security Administration, said, “The sentence holds Mr. Harlston accountable for his criminal acts of misusing multiple Social Security numbers to defraud several financial institutions and creditors, as well as to fraudulently obtain CARES Act funds.”
U.S. Attorney Sayler Fleming urged anyone with information about pandemic fraud to come forward, saying, “We are continuing to aggressively prosecute these cases.”
Harlston’s case is one of almost four dozen pandemic fraud-related cases handled by the U.S. Attorney’s office, with a strong warning to those who would exploit the system: we will find you and we will hold you accountable.
Defendant: Le Mell Harlston
Criminal Charges: Five counts of bank fraud, nine counts of misuse of a Social Security number
City and State: University City, Missouri
Date: 2023
Sentence: 30 months in prison, ordered to repay $650,000
Dollar Amounts: $653,332 (total loss), $551,830 (CARES Act funds)
Key Facts
- State: Missouri
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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