Russell Ray Foreman, COVID-19 Fraud, Colorado 2022

Aurora man Russell Ray Foreman, age 39, has been sentenced to 66 months in prison for his role in a COVID-19 relief fraud scheme. The crime dates back to March 29, 2020, when Foreman submitted seven fraudulent Economic Injury Disaster Loan (EIDL) applications to the Small Business Administration (SBA).

According to the plea agreement, Foreman knowingly made false statements about the number of employees for each business, the gross revenues, the cost of goods sold, and the date each business was formed. Two of the EIDL applications were approved and funded by the SBA, resulting in $196,500.00 in EIDL proceeds being received by LLCs created by Foreman.

Foreman also filed a false and misleading Paycheck Protection Program (PPP) loan application on May 14, 2020, which resulted in a $20,052.00 PPP loan being funded by an FDIC-insured bank. Additionally, he aided and abetted a codefendant who made a false EIDL application and received $150,000.00.

Further, Foreman laundered proceeds by causing the transfer of funds to his sister, which was later returned to him. The defendant's actions led to a total of over $2 million in unsuccessful applications under the CARES Act.

At the sentencing hearing, the court considered Foreman's involvement in the scheme and ordered him to pay restitution in the amount of $367,000.00. Judge Raymond P. Moore sentenced Foreman on August 12, 2022.

Foreman's sentence serves as a reminder of the consequences of committing COVID-19 relief fraud. The U.S. Attorney's Office for the District of Colorado is committed to holding individuals accountable for their actions and ensuring that those who take advantage of these programs are brought to justice.

Source: https://www.justice.gov/usao-co/pr/aurora-man-sentenced-66-months-covid-fraud