Shawn Nicholas Young, 42, was involved in a wire fraud conspiracy that used the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, both of which were managed by the Small Business Administration (SBA) and intended to provide a lifeline to struggling small businesses during the pandemic.
The execution of Young’s play, while not sophisticated, was successful. According to the Department of Justice, he submitted over 100 fraudulent loan applications, attempting to obtain more than $9.5 million in relief funds by distorting business information, preparing false tax returns, and fabricating backdated papers to back up his claims. He persisted in the scheme until his capture, embezzling funds meant for struggling small businesses amidst the global financial crisis. Young also received kickbacks from others who acquired loans through his dishonest efforts, which increased his ill-gotten profits.
Young’s greed has a cost beyond money: it is a betrayal of the community’s trust. This conduct comes after his plea bargain, which requires him to make full restitution to the victims and relinquish his house and car—assets probably purchased with the laundered proceeds of his scheme. Young’s fate will be sealed on October 27, when he faces a maximum 20-year federal prison sentence and up to a $250,000 fine, according to U.S. District Judge Kenneth M. Hoyt; in the meantime, he remains on bond.
The investigation that led to Young’s guilty plea was conducted in collaboration with a number of law enforcement agencies, including the Federal Housing Finance Agency Office of Inspector General (OIG), the Treasury Inspector General for Tax Administration, and Immigration and Customs Enforcement – Homeland Security Investigations. Local law enforcement agencies, such as the Fort Bend Sheriff’s Office and Harris County Constable’s Office, Precinct 1, assisted them. Assistant US Attorneys Stephanie Bauman and Shirin Hakimzadeh lead the prosecution in this case, drawing a tighter net around Young and his co-conspirators.
The establishment of a dedicated COVID-19 Fraud Enforcement Task Force demonstrates the federal government’s willingness to prevent such exploitation—an initiative that brings together the knowledge and capacities of several departments to combat pandemic-related fraud. The task force’s mandate includes intensifying investigations, boosting prosecutions, and improving prevention measures in relief programs. The Department of Justice invites anybody with knowledge about suspected COVID-19 relief fraud to contact the National Center for Disaster Fraud (NCDF) Hotline or the NCDF Web Complaint Form.