Alexandria, Va. – In a shocking case of COVID-19 relief fraud, Russell Laraway, a 56-year-old Army Reserve officer, pleaded guilty to wire fraud for his scheme to defraud a federal COVID-19 relief plan.
According to court documents, Laraway, a resident of Leesburg, incorporated two business entities in Virginia: Loudoun Innovation LLC (‘LI LLC’) and Commonwealth Commerce LLC (‘CC LLC’). Beginning in April 2020, Laraway submitted loan applications through the Paycheck Protection Program (PPP), a COVID-19 relief program that was intended to provide loans backed by the Small Business Administration to certain businesses, nonprofit organizations, and other entities to help them retain their employees or stay afloat during the pandemic.
Laraway sought loan forgiveness for some of the PPP loans by falsely certifying that the PPP money had been used solely for payroll or other authorized purposes, while he actually intended to use the money to engage in spurious investment ventures and pay off personal debts.
The court documents revealed that Laraway fraudulently received two PPP loans for LI LLC and two PPP loans for CC LLC, totaling approximately $488,952. Some of the loan money was paid to foreign entities in scams of which Laraway was a victim.
Laraway is scheduled to be sentenced on July 25 and faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Katherine E. Rumbaugh, Assistant U.S. Attorney for the Eastern District of Virginia, is prosecuting the case. The U.S. Attorney’s Office for the Eastern District of Virginia announced the plea, along with the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service’s Mid-Atlantic Field Office, and the FBI Washington Field Office’s Criminal and Cyber Division.
Laraway’s actions have sent shockwaves throughout the community, highlighting the importance of transparency and accountability in the use of federal funds. The case serves as a reminder of the consequences of COVID-19 relief fraud and the need for continued vigilance in preventing such schemes.
Key Facts
- State: Virginia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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