Travis Crosby, COVID-19 Relief Fraud, Georgia 2023

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Table of Contents

COVID-19 Relief Fraud Scheme Exposed in Atlanta

A South Carolina man, Travis Crosby, has been convicted of fraudulently obtaining a $300,000 forgivable Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The conviction marks a significant milestone in the ongoing fight against COVID-19 Relief fraud. Travis Crosby, 32, of Wellford, South Carolina, was found guilty of conspiracy to commit bank fraud, bank fraud, making a false statement to a bank, and money laundering.

The scheme unfolded during the height of the pandemic, when Crosby submitted a PPP loan application on behalf of his company, Faithful Transport Services LLC (Faithful Transport). The loan application falsely inflated the number of employees and average monthly payroll for Faithful Transport, inducing a larger PPP loan than Crosby could legitimately obtain.

Crosby and a co-conspirator also caused the submission of a forged tax document to support the false statements in the loan application. The defendant then engaged in a series of sham transactions with various individuals to make it appear that he was paying them payroll for work at Faithful Transport when, in reality, these individuals returned the vast majority of the funds to Crosby.

This conviction is the 11th in the Justice Department’s prosecution of a $3 million, Atlanta-based PPP fraud ring. Authorities have recovered approximately $1.2 million of the stolen money. Crosby is scheduled to be sentenced on January 10, 2023.

The COVID-19 Relief fraud scheme has resulted in significant losses for the government and legitimate businesses. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds.

The Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the government in partnership with agencies across government to enhance efforts to prevent and combat COVID-19 fraud schemes.