Shreveport, LA – Twenty-four members and associates of the “Step or Die” (SOD) street gang are facing federal fraud charges after allegedly exploiting the CARES Act for personal gain. Federal prosecutors unveiled the indictment today, detailing a scheme to illegally obtain COVID-19 relief funds meant for struggling Americans.
The CARES Act, passed in March 2020, was a massive federal response to the economic fallout of the pandemic. Billions flowed through programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), intended to keep businesses afloat and people employed. But for the SOD gang, it was an opportunity to line their pockets, according to the indictment.
The feds allege the gang members filed fraudulent applications for both PPP and EIDL loans, fabricating business details and inflating expenses to qualify for funds they weren’t entitled to. The exact amounts each defendant attempted to steal vary, but prosecutors say the scheme involved significant sums diverted from legitimate relief efforts. This wasn’t about helping people; it was a calculated grab for cash during a national crisis.
U.S. Attorney Brandon B. Brown made it clear this case isn’t just about financial fraud. “This is about a violent street gang using a pandemic to enrich themselves,” he stated. “We’re committed to eradicating violence in our communities and holding accountable those who prey on vulnerable programs.” The investigation involved a collaborative effort between the FBI, the Treasury Inspector General for Tax Administration, and local law enforcement.
One defendant, Roderguiz Henry, is currently on the run, and the U.S. Marshals Service is actively seeking his arrest. Anyone with information on Henry’s whereabouts is urged to contact authorities at 318-934-4300. Don’t approach him; let the professionals handle it. This highlights the ongoing challenge of tracking down those who attempt to evade justice.
While an indictment isn’t proof of guilt, the potential consequences for those convicted are severe. Each defendant faces up to 20 years in prison, a maximum of three years of supervised release, and fines reaching $250,000. Federal prosecutors are vowing to pursue the maximum penalties for those found guilty of defrauding the CARES Act, sending a message that exploiting a national emergency won’t be tolerated.
The Treasury Inspector General emphasized their dedication to protecting taxpayer dollars. “We will relentlessly pursue those who attempt to defraud federal programs,” a spokesperson said. “Collaboration with the FBI and the U.S. Attorney’s Office is crucial in achieving this goal.” The investigation underscores the importance of vigilance in safeguarding funds intended for legitimate relief efforts.
This case serves as a stark reminder that even during a crisis, criminals will seek to exploit the system. The feds are sending a clear signal: those who steal from COVID relief programs will be hunted down and prosecuted to the fullest extent of the law. The Grimy Times will continue to follow this case as it unfolds.
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