SPOKANE, WA – Roshon Edward Thomas, 52, of Spokane, Washington, is facing up to 40 years in federal prison after being indicted on two counts of fraud related to the COVID-19 Economic Injury Disaster Loan (EIDL) program. The charges, announced today by U.S. Attorney Vanessa R. Waldref, represent the first fruits of a newly formed, interagency COVID-19 Fraud Strike Force targeting those who exploited pandemic relief programs.
The EIDL program, launched under the CARES Act in March 2020, was designed to provide low-interest “bridge” loans to struggling small businesses decimated by the economic fallout of the COVID-19 pandemic. Billions of dollars flowed through the program, with hundreds of millions landing in Eastern Washington. But the flood of applications, coupled with lax oversight, created a breeding ground for fraud, leaving legitimate businesses shortchanged and taxpayers on the hook.
According to the indictment, Thomas allegedly applied for and received a $32,400 EIDL loan using the name of a fictitious business. The details of the fake company haven’t been released, but authorities say the scheme was a blatant attempt to siphon funds intended for those genuinely impacted by the pandemic. Each count of fraud carries a maximum sentence of 20 years in federal prison, meaning Thomas could face a lengthy stint behind bars if convicted.
U.S. Attorney Waldref unveiled the COVID-19 Fraud Strike Force as a direct response to the rampant abuse of programs like the EIDL and Paycheck Protection Program (PPP). The Strike Force is a coalition of federal law enforcement agencies, including the Small Business Administration Office of Inspector General (OIG), the FBI, the Treasury Inspector General for Tax Administration (TIGTA), the U.S. Secret Service, and others. Waldref emphasized the necessity of this collaborative effort, stating that it’s “critical to the strength and safety of our community” to hold those who defrauded the system accountable.
“It is not fair that some deserving small businesses could not obtain funding to keep their businesses in operation during the COVID-19 pandemic, when others abused the programs,” Waldref said in a press statement. The formation of the Strike Force signals a stepped-up effort to recoup stolen funds and prosecute individuals who saw the pandemic as an opportunity for personal enrichment. Waldref specifically praised the work of the SBA OIG, FBI, and TIGTA in the Thomas investigation, promising continued collaboration on future cases.
This case, and the launch of the Strike Force, are a clear message: federal authorities are actively investigating and prosecuting COVID-19 relief fraud. With billions of dollars still unaccounted for, expect more indictments and arrests in the coming months as the Strike Force continues to untangle the web of deceit surrounding these crucial relief programs. The investigation is ongoing.
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- HHS Office of Inspector General, Health Fraud, Washington D.C., 2024 · Washington
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- June Gibbs-Brown, Healthcare Fraud Enforcement, Washington DC, 1993 · Pennsylvania
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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