Ronald A. Smith, Loan Scam, Virginia 2021

NORFOLK, Va. – A Virginia Beach man has been convicted of cheating 1,700 victims out of $1,287,000 in a loan scam. Ronald A. Smith, 59, pleaded guilty to wire fraud, engaging in monetary transactions in criminally derived property, and fraud in connection with emergency benefits. He faces a maximum penalty of 60 years in prison when sentenced on April 2, 2021.

According to court documents, Smith and his wife, Terri Beth Miller, set up a company called Business Development Group. The company offered to assist individuals in preparing loan applications to obtain SBA-guaranteed loans in exchange for an advance fee. However, Smith and Miller solicited customers on the basis of false and misleading statements, including claims that the company was headquartered at the Trump Building in New York and had assisted well-known large companies in obtaining SBA loans.

The couple solicited approximately 1,700 customers, who paid an aggregate sum of about $1,287,000 in advance fees. However, the vast majority of these customers did not receive an SBA guaranteed loan. In fact, Smith did virtually nothing to even attempt to obtain loans for their customers, despite offering a money-back guarantee. Smith was convicted of a nearly identical scam back in 2006 and received a seven year sentence.

Smith also made a false application to the Virginia Employment Commission for unemployment benefits, including an additional $600 per week in federal pandemic unemployment compensation authorized under the CARES Act. He falsely stated that he was not the owner or operator of a business and that he had not received income from another source. As a result of his false statements, Smith received $9,600 in federal pandemic unemployment compensation to which he was not entitled.

The case was investigated by the FBI’s Norfolk Field Office and is being prosecuted by Assistant U.S. Attorney Alan M. Salsbury. The plea was accepted by U.S. District Judge John A. Gibney, Jr.

A copy of the plea agreement is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-69.

The defendant’s sentencing is scheduled for April 2, 2021. The maximum penalty for the crimes is 60 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties.

Mandatory Facts: Defendant: Ronald A. Smith, Exact Charges: Wire fraud, engaging in monetary transactions in criminally derived property, and fraud in connection with emergency benefits, City: Norfolk, State: Virginia, Date: 2021, Sentence: Up to 60 years in prison.

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