Norman Beckwood, Covid Relief Fraud, Tennessee 2023

A Memphis, Tennessee man has been sentenced to 62 months imprisonment for his role in a scheme to defraud the Small Business Administration (SBA) of over $11 Million in Covid relief funds.

Norman Beckwood, 29, of Memphis, recruited individuals to submit fraudulent loan applications to the SBA, working in conjunction with his co-conspirator, Lakeith Faulker, who was an employee of the SBA.

According to court documents, Beckwood and Faulker helped submit over $11 Million in fraudulent Economic Injury Disaster Loans (EIDL) in exchange for $2.3 Million in kickbacks from the borrowers.

Beckwood entered a guilty plea on January 17, 2023, and was sentenced today by U.S. District Judge Sharion Aycock to serve 62 months imprisonment followed by five years of supervised release.

Faulker, who entered a guilty plea on December 7, 2022, was sentenced by United States District Judge Debra M. Brown on May 24, 2023, to serve 62 months imprisonment followed by five years of supervised release.

Beckwood was also ordered to forfeit $700,147.74, a 2018 Mercedez Benz C Class, and a 2020 Mercedes Benz G63. Faulker was ordered to pay $10,620,452.26 in restitution to the SBA.

Twenty-one individual borrowers have been charged in connection with the same scheme, with eight already pleading guilty and receiving sentences ranging from 6 months to 24 months imprisonment.

U.S. Attorney Clay Joyner stated, ‘Norman Beckwood and his cohorts stole millions of dollars from American taxpayers while taking advantage of programs designed to help keep businesses afloat during a national crisis.’

The case is being investigated by the Federal Bureau of Investigation and the U.S. Small Business Administration Office of Inspector General.

The U.S. Attorney’s Office will continue to work with law enforcement partners to bring those who committed pandemic benefit fraud to justice and recover the stolen funds.

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