Four men have been sentenced as part of their roles in a scheme in which they received more than $11.5 million in COVID relief funding through fraudulent business loan applications.
All four pleaded guilty to their involvement in the scheme. According to a press release from the US Department of Justice, US District Judge Jennifer Wilson ordered them to pay millions in restitution each.
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- Joshua White, 44, of Yoe, Pennsylvania, was sentenced to eight years in prison.
- Creed White, 67, of Freeland, Maryland, was sentenced to 10 years in prison. Creed White is Joshua White’s father.
- Joseph Bailey, 54, of York, Pennsylvania, was sentenced to 46 months in prison.
- Kester Murray, 40, of Emigsville, Pennsylvania, was sentenced to two years of probation.
The inquiry focused on Creed White, who filed over 120 false applications for federal financial aid on behalf of 18 dormant firms.
The announcement stated that the acceptance of 40 of those applications resulted in the transfer of $11.5 million to White’s bank accounts.
Creed White filed the applications in the names of numerous third people, using information he received from Joshua White.
Bailey and Murray used fake company, banking, and tax data to support their loan applications, according to the announcement.
“When individuals manipulate pandemic relief programs for personal gain, they undermine public trust and divert critical resources from legitimate small businesses,” Amaleka McCall-Brathwaite, a special agent from the U.S. Small Business Administration Office of Inspector General, said in the release.
“These sentencings underscore that fraud against federal relief programs will be aggressively investigated and prosecuted,” McCall-Brathwaite said.
