⏱ 2 min read
A slick New Orleans businessman swindled the government out of $712,212 in COVID-19 relief funds, claiming his struggling bed and breakfast had raked in over $425,000 in 2019.
Arthur Allen, 53, pleaded guilty to providing a false statement to a federal agency on April 22, 2026, before U.S. District Judge Jay C. Zainey.
Allen’s scheme unraveled after an investigation revealed his business had generated no receipts or revenue in 2019, and he had paid no employees. The Small Business Administration had approved a government-sponsored loan designed to assist small business owners during the pandemic.
Allen now faces up to 5 years in prison and a $250,000 fine when he’s sentenced on July 28, 2026.
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📋 Key Facts
- Crime: White Collar Crime
- Defendant: Louisiana
- Location: LA
- Source: DOJ Press Release
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