A Detroit-based certified public accountant has been sentenced in federal court in Pittsburgh for orchestrating a major Paycheck Protection Program (PPP) loan fraud that affected hundreds of small businesses, many of which were in Western Pennsylvania.
Matthew Lloyd Parker, 37, was sentenced to 24 months in prison, followed by four years of supervised release, and ordered to pay $14.5 million in restitution to the US Small Business Administration, Acting US Attorney Troy Rivetti stated on Tuesday.
Parker is accused by federal authorities of leading a scheme between March 2020 and August 2021 in which he faked over 200 PPP loan applications totaling more than $14.5 million.
Many of the small firms he recruited were in Pittsburgh and nearby areas, making this the largest known PPP fraud case in the Western District of Pennsylvania.
Parker allegedly utilized his CPA expertise to misrepresent firm facts, payroll information, and tax records in order to obtain funds for legitimate pandemic recovery efforts.
He personally made about $1.5 million in loan processing fees.
Assistant US Attorney Gregory C. Melucci prosecuted the case, which was also probed by the FBI and the United States Postal Inspection Service.
“This sentence sends a strong message that exploiting emergency relief programs at the expense of honest small business owners will not go unpunished,” Rivetti told reporters.
The PPP program was created to provide financial help to businesses that were struggling during the COVID-19 pandemic.
