A Michigan man admitted his role in a drug distribution network and a related loan fraud case linked to COVID-19 relief funds. Donald Nchamukong, 37, entered his guilty plea before a federal court in Boston, committing to charges of conspiracy to smuggle goods into the U.S., commit loan fraud, and distribute controlled substances, reports the U.S. Attorney’s Office. Judge Nathaniel M. Gorton is set to deliver Nchamukong's sentencing on June 25.
The operation, running from 2019 to 2022, saw Nchamukong and his associate Doyal Kalita using internet and call centers in India to push their illegal pharmaceutical sales, including the Schedule IV opioid tramadol, into American hands. Employing shell companies purportedly dealing in dietary supplements and auto parts, the men laundered money and navigated the drug distribution channels. Amidst the raging pandemic, they further manipulated a $200,000 Economic Injury Disaster Loan, purportedly securing the funds to fuel their illicit enterprise.
Doyal Kalita was sentenced in 2024 to ten years in prison for leading the drug trade and a complex tech support fraud scheme, which included money laundering activities. Meanwhile, Nchamukong faces a conspiracy charge that could result in up to five years in prison, three years of supervised release, and a fine of up to $250,000 or double the monetary gain or loss, whichever is greater. The final sentencing will be determined by the federal district court judge, based on the applicable guidelines and statutes for criminal cases.
Leah B. Foley, the United States Attorney, alongside Jodi Cohen of the FBI's Boston Division, IRS Criminal Investigation's Thomas Demeo, and the U.S. Food and Drug Administration's Fernando P. McMillan, spearheaded the announcement of Nchamukong's plea. Their investigation benefited from contributions by Homeland Security Investigations in New York, the Small Business Administration, and the United States Attorney’s Office for the Eastern District of New York. Assistant U.S. Attorney Kriss Basil, Deputy Chief of the Securities, Financial, and Cyber Fraud Unit, is handling the prosecution of this case.
The Department of Justice has actively addressed pandemic-related fraud by creating the COVID-19 Fraud Enforcement Task Force in May 2021. This initiative focuses on individuals exploiting government relief programs, uniting various government agencies to combat fraudulent activities. Anyone with information about potential COVID-19 related fraud is encouraged to report it through the Department of Justice’s National Center for Disaster Fraud Hotline or via their online complaint form.
