A Missouri City man has admitted to pocketing a hefty $1.65 million through fraudulent loan applications aimed at COVID-19 relief funds, according to a statement released by U.S. Attorney Nicholas J. Ganjei's office. The 42-year-old, Shawn Nicholas Young, was involved in a wire fraud conspiracy that exploited the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, both of which were under the management of the Small Business Administration (SBA) and intended to provide a lifeline to struggling small businesses during the pandemic.
Young's play, as it unfolded, wasn't sophisticated in nature but was successful in its execution. As reported by the Department of Justice, he submitted over 100 fraudulent loan applications, aiming for more than $9.5 million in relief funds by manipulating business information, drafting fake tax returns, and inventing backdated documents to support his claims. He kept the scheme going until he was caught, taking money meant for struggling small businesses during the global financial crisis. This scheme also saw Young receive kickbacks from those who secured loans through his fraudulent efforts, further padding his ill-gotten gains.
The cost of Young's greed goes beyond money—it’s a betrayal of the community’s trust. This act follows his plea agreement that compels him to make full restitution to the victims and to forfeit his house and car—assets presumably bought with the laundered success of his conspiracy. A federal judge will seal Young's fate on October 27 when he faces a possible 20-year federal prison sentence and up to a $250,000 fine, a day of reckoning set by U.S. District Judge Kenneth M. Hoyt; meanwhile, Young remains on bond.
An assembly of law enforcement agencies—including the Federal Housing Finance Agency Office of Inspector General (OIG), the Treasury Inspector General for Tax Administration, and Immigration and Customs Enforcement - Homeland Security Investigations—collaborated on the investigation leading to Young's guilty plea. Their efforts were supported by local enforcement agencies, including the Fort Bend Sheriff’s Office and the Harris County Constable’s Office, Precinct 1. Assistant U.S. Attorneys Stephanie Bauman and Shirin Hakimzadeh led the prosecution in this case, tightening the net around Young and his co-conspirators.
The formation of a dedicated COVID-19 Fraud Enforcement Task Force reflects the federal government’s determination to crack down on such exploitation—an effort that consolidates the knowledge and capabilities of various departments to combat pandemic-related fraud. The task force’s mandate includes strengthening investigations, increasing prosecutions, and improving prevention measures within relief programs. The Department of Justice urges anyone with information about potential COVID-19 relief fraud to report it through the National Center for Disaster Fraud (NCDF) Hotline or the NCDF Web Complaint Form.
