Quentin Allen Jackson, a former member of the Harlem Globetrotters, was sentenced to seven years in prison after pleading guilty to a COVID-19 fraud scheme. According to a U.S. Department of Justice release, the 58-year-old was also ordered to pay three million dollars in restitution for his role in the conspiracy to commit money laundering linked to Paycheck Protection Act loans.
"We in the Carolinas idolize our basketball stars, especially the ACC greats who played on Tobacco Road," Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina, aptly stated. "As a college point guard and Harlem Globetrotter, Jackson’s crossover was deadly. But he drew a foul when he used his talents and reputation to recruit people into a multi-million-dollar fraud on our nation’s pandemic relief program." The U.S. Attorney emphasized in a press release that this sentence should "stand as a warning" to others who exploited the nation’s pandemic relief efforts.
Highlighting the efforts of law enforcement, Donald "Trey" Eakins, Special Agent in Charge at the IRS Criminal Investigation Charlotte Field Office, affirmed their commitment to pursuing individuals who exploit federal aid programs for personal gain. "Schemes to fraudulently obtain federal funds meant to provide assistance to small businesses are unacceptable," Eakins stated in a press release, emphasizing that Jackson took advantage of critical aid programs designed to support businesses affected by the pandemic.
Jackson's case is part of a broader investigation which has already seen 27 defendants sentenced, with five others waiting for their sentencing. According to the same Justice Department press release, Jackson conspired to obtain fraudulent PPP loans through multiple companies under his control. After securing the funds, he purportedly took steps to create the illusion of regular wage payments to nonexistent employees, completing a cycle of money laundering that defrauded the CARES Act's intended beneficiaries.
The Paycheck Protection Program, part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was established by Congress in March 2020 to alleviate the economic impact of the coronavirus pandemic on American businesses. Financial institutions, backed by the Small Business Administration, issued the forgivable PPP loans focusing on supporting small businesses during the crisis.
The sentence was handed down by United States District Judge James C. Dever III, with the case being investigated by the IRS Criminal Investigation division. Jackson's conviction serves as a sobering reminder of the legal consequences facing those who misuse federal pandemic assistance, manipulating systems intended to support the economic stability of communities nationwide.
