Henry Ellard Jr., a Fresno man, has pleaded guilty to defrauding the Small Business Administration (SBA) out of $144,000 meant for COVID-19 relief. According to the U.S. Attorney's Office, Ellard admitted to fabricating details about his company's operations to secure the funds, which he subsequently used for personal indulgences including dining, travel, and golf.
In the details outlined by the authorities, it was revealed that Ellard's company, Baptiste Ellard LLC, was, in essence, a falsified enterprise. His claim that the business had 10 employees and an annual payroll exceeding $695,000 was a calculated untruth. Despite knowing that his company had no real operations or staff, Ellard used those fabricated figures to procure pandemic assistance designed to sustain legitimate businesses struggling amidst global uncertainty.
The successful investigation that led to Ellard's confession was a combined effort by the U.S. Treasury Inspector General for Tax Administration and the Federal Bureau of Investigation. The case is now in the hands of Assistant U.S. Attorneys Joseph Barton and Arelis M. Clemente. With the sentencing set for February 24, 2025, the court's considerations will be influenced by the Federal Sentencing Guidelines, with Ellard facing up to a decade behind bars and a potential $250,000 fine.
Ellard's case is just one of many under the scrutiny of the California COVID-19 Fraud Enforcement Strike Force—a testament to the unfortunate reality that the pandemic brought not only a viral plague but also a cohort of opportunists. Those with information on potential pandemic relief fraud are encouraged to report suspicions to the Department of Justice’s National Center for Disaster Fraud.