Memphis resident Herman Shaw, 44, has been sentenced to 30 months in prison for fraudulently obtaining over $700,000 from the Paycheck Protection Program (PPP). Shaw, who operated "Freight Masters, Inc.," admitted to providing false information on his loan application, including misrepresenting the number of employees, according to the Department of Justice.
Herman Shaw misused the $782,212 he received from the Paycheck Protection Program, spending it on personal expenses, gambling debts, and a $262,000 payment to an accomplice instead of legitimate business costs like salaries. After pleading guilty to wire fraud on August 2, United States District Court Judge Thomas L. Parker sentenced him on Wednesday last week. Shaw was ordered to repay the full amount to the Small Business Administration, with the federal no-parole policy.
Acting U.S. Attorney Reagan Fondren emphasized that those who exploited the Paycheck Protection Program stole from taxpayers for personal gain, disregarding the economic hardships faced nationwide. He also commended the efforts of agencies like the SBA Office of Inspector General, the Secret Service, and TIGTA for their work in protecting the PPP and other COVID-19 relief programs from fraud.
Assistant U.S. Attorney Tony Arvin, alongside law enforcement agencies such as the FDIC and the Federal Housing Finance Agency, led efforts to reinforce the government’s commitment to cracking down on similar fraud schemes.
