Three individuals have been sentenced to prison for their involvement in a scheme to defraud the federal government's Paycheck Protection Program (PPP), which intended to aid small businesses during the COVID-19 pandemic. Teldrin Foster, John Gaines, and Carla Jackson received sentences after being convicted of various charges including money laundering and making false statements to a federally insured financial institution.

U.S. Attorney Ryan K. Buchanan emphasized the seriousness of the crime, stating, "These defendants have been held accountable for depriving this program of funds desperately needed by some of the most vulnerable in our society," as reported by the U.S. Department of Justice. The fraud amounted to over $11 million obtained through fabricated loan applications and supporting documents for non-existent businesses and employees. In a continued strategy to rigorously fight such fraudulent activities, the Department of Justice's COVID-19 Fraud Enforcement Task Force has been at the frontline.

The U.S. Department of Justice outlined the details of the sentencing. Foster received a 10-year and one-month prison term, along with an order to pay restitution of approximately $9.6 million. Gaines was sentenced to five years and three months, with a restitution order of over $800,000. Jackson, who aided in laundering the proceeds, will serve three years in prison and has been ordered to pay over $335,000 in restitution.

These sentences underscore a clear message from the Department of Justice and its partners, including the FBI and IRS Criminal Investigation, that those who choose to misuse government-provided aid will be prosecuted. "The FBI will continue to hold accountable those who abused taxpayer dollars and diverted them from citizens who desperately needed them," said Special Agent in Charge Keri Farley. This case, pursued by Assistant U.S. Attorneys and the Criminal Division’s Fraud Section, reflects the shared commitment to ensuring the integrity of relief programs.