A Texas couple has been hit with hefty prison sentences for their involvement in a fraud scheme that exploited the Paycheck Protection Program (PPP) during the COVID-19 pandemic. Michael Fullerton, 51, and Tiffany Fullerton, 48, of Georgetown, managed to secure around $3 million through fraudulent PPP loan applications using dormant company identities. Information from the U.S. Department of Justice release details the use of that ill-gotten cash; the funds were funneled into a business venture in Oklahoma, which included a marijuana operation, a bar and grill, and an auto repair shop along with some lavish personal expenses, such as a motor home and luxury watches.
The couple faced serious charges in federal court, where Michael Fullerton pled guilty to a total of 11 counts, including bank and wire fraud, as well as aggravated identity theft. He will serve 286 months—a little over 23 years—in federal prison. The Fullerton's partner in crime, Tiffany, was convicted on counts of conspiracy to commit bank fraud and money laundering following a jury trial, landing her 108 months, which means she'll spend 9 years behind bars. Together, they're also responsible for the repayment of over $3 million in restitution. U.S. Attorney Jaime Esparza, representing the Western District of Texas, did not mince words, declaring the couple's actions as a betrayal of the national trust during a period of widespread crisis.
Led by the Internal Revenue Service-Criminal Investigation (IRS-CI) and the Treasury Inspector General for Tax Administration (TIGTA), the case against the Fullertons was laid bare; the couple, along with their accomplices, constructed a labyrinth of deceit around the PPP loan process. They doctored payroll records, banking statements, and other documents to lay their hands on funds earmarked for struggling businesses. The investigative team's work emphasized the importance of financial trials when it comes to uncovering fraudulent activities. "Financial investigations follow the money, and it always leaves a trail. If you’re committing the crime, it’s only a matter of time before you’re caught and sent to prison," said Acting Special Agent in Charge Lucy Tan of IRS-CI's Houston Field Office, in a statement released by the Department of Justice.
Acting Special Agent in Charge Kyle Kuykendall of TIGTA noted the critical nature of maintaining the integrity of such systems, indicating that vigorous investigative efforts will continue against anyone attempting to subvert it. IRS-CI and TIGTA's collaboration alongside prosecutors was pivotal in ensuring that Fullerton's attempts at manipulating the system did not go unchecked. Assistant U.S. Attorneys Keith Henneke and G. Karthik Srinivasan prosecuted the complex case, ultimately culminating in the recent convictions and sentencing.
