A Valley Springs man, Tracy Emery Smith, 42, has been sentenced to 37 months in prison and ordered to pay $901,035 in restitution for COVID-19 Paycheck Protection Program (PPP) loan fraud and money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2020, Smith submitted loan applications for three companies, containing false information such as the number of employees, the average monthly payroll for the company, and that he had not been involved in any bankruptcy. Smith was listed as sole owner of Sharp Holding, and in the PPP loan application for that company, Smith claimed 27 employees with an average monthly payroll of $105,791. He certified that he was not involved in a bankruptcy when, in fact, his bankruptcy was pending at the time of the application. Smith received PPP loan proceeds of $220,600.
Smith’s bogus loan applications drained the PPP program of funds intended for actual businesses that were negatively impacted by the pandemic, said U.S. Attorney Talbert. The U.S. Attorney’s Office will continue to investigate and prosecute those who obtained PPP funds through fraud.
Tracy Smith fraudulently falsified Paycheck Protection Program loan applications and obtained funds designated to provide Americans financial relief during the COVID-19 pandemic under the CARES Act, said IRS Criminal Investigation Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. Today’s sentencing reinforces that IRS Criminal Investigation special agents and investigative staff are following the money and targeting fraudsters who seek to exploit the government’s relief efforts for their personal gain.
Tracy Smith defrauded the federal government of pandemic relief funds for his own personal gain and will now pay the price for his crimes, said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to hold Mr. Smith accountable.
The FBI is proud to partner with our fellow agencies, said Special Agent in Charge Siddhartha Patel of the FBI Sacramento Field Office. Collaboration ensures a thorough investigation by leveraging the strengths and unique abilities of each agency. This case is an example of how federal agencies work together to protect taxpayer-funded programs.
Defendant: Tracy Emery Smith
Criminal Charges: COVID-19 Paycheck Protection Program Loan Fraud and Money Laundering
City and State: Valley Springs, California
Date: Not specified
Sentence: 37 months in prison and ordered to pay $901,035 in restitution
Dollar Amount: $901,035
Related Federal Cases
- Jason Toland, COVID Fraud, California 2024 · Colorado
- Mehrdad Tabrizi, COVID Relief Fraud, California 2021 · Arkansas
- Mitch Tabrizi, COVID-19 Relief Fund Fraud, California 2024 · California
- Tamara Yvonne Motley, Medicare Fraud, California 2023 · California
- Sara Jacqueline King, Investor Fraud, California 2023 · Idaho
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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