Ten people have been charged in federal court for allegedly participating in a fraud and money laundering scheme that targeted U.S. Small Business Administration loan programs, including the Economic Injury Disaster Loan (EIDL) program and Paycheck Protection Program (PPP). Two of the defendants also face charges related to laundering proceeds from a fraudulent unemployment insurance scheme.
“Fraud schemes, like the ones perpetrated by these defendants, stole valuable resources meant to assist small businesses and citizens during difficult times,” said United States Attorney Theodore S. Hertzberg. “The U.S. Attorney’s Office is committed to prosecuting and punishing cold-hearted criminals who target government aid programs for their personal gain.”
“PPP loans were intended to provide critical relief to small businesses,” said FBI Atlanta Special Agent in Charge Paul Brown. “FBI Atlanta and our law enforcement partners will continue to aggressively pursue anyone who exploited the pandemic as a means to enrich themselves.”
“An important mission of the Office of Inspector General is to investigate allegations of unemployment insurance fraud targeting state workforce agencies. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General.
According to information presented in court, between November 2020 and June 2023, David Nathaniel Black, Jr., along with others, allegedly used legitimate companies’ details without authorization to submit false EIDL and PPP applications. The applications reportedly included inaccurate information about company operations and finances and were supported by fraudulent documents such as tax records and bank statements. Stolen identification information was also used without the knowledge of company owners or officers. The total amount obtained through these alleged activities exceeded $9 million.
After receiving the funds, defendants are accused of making cash withdrawals and purchasing luxury items with the proceeds. For example, Black allegedly spent $200,000 on a 2022 Bentley Bentayga; $350,000 on a 2020 McLaren 720S convertible; $142,680 as a down payment for a 2023 Mercedes Benz G-Class Wagon; and $180,645 on annual rent for a luxury home.
David Nathaniel Black, Jr., 31, from Newnan, Georgia faces multiple charges: 17 counts of wire fraud (up to 20 years per count), 17 counts of aggravated identity theft (mandatory two-year consecutive terms per count), and over 100 counts of money laundering (up to 10 years per count).
Others charged with multiple counts of money laundering include Rashad Avery (Atlanta), Tara Batson (Atlanta), Chris Elvins Constant (Ft. Pierce), Nicole Cooley (Baltimore), Reginald Douglas (Atlanta), Yvenord Guerilus (Miami), Carson Merice (Miami), Rise Robinson (Atlanta), and George Thompson (Atlanta). Black and Constant are additionally charged with conspiracy to launder proceeds from an unemployment insurance scheme—a charge carrying up to 20 years’ imprisonment.
Authorities remind the public that indictments are only allegations at this stage; all defendants are presumed innocent until proven guilty in court.
The Federal Bureau of Investigation and Department of Labor’s Office of Inspector General are investigating this case.
Assistant United States Attorneys Kelly K. Connors and Sarah E. Klapman are prosecuting.
Nine defendants appeared in federal court this week after their arrests. Authorities seek information on Rise Robinson’s whereabouts; tips can be submitted at https://tips.fbi.gov or by calling 800-CALL-FBI.
In May 2021, the Department of Justice formed the COVID-19 Fraud Enforcement Task Force to coordinate efforts across government agencies against pandemic-related fraud schemes (https://www.justice.gov/coronavirus).
Anyone with information about attempted COVID-19 fraud can report it via the National Center for Disaster Fraud Hotline at 866-720-5721 or online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
