Ten people are facing federal charges for fraud and money laundering connected to U.S. Small Business Administration loan programs. According to the U.S. Attorney’s Office, the defendants obtained more than $9 million in fraudulent loans from the Economic Injury Disaster Loan program and the Paycheck Protection Program. Some are also accused of participating in a fraudulent unemployment insurance scheme.
The indictment states the group used false information and fraudulent documents, such as tax records and payroll files, to secure loans. Prosecutors say the proceeds were spent on luxury cars and homes. David Nathaniel Black Jr., identified as the ringleader, faces charges of wire fraud, aggravated identity theft, and more than 100 counts of money laundering. Items purchased reportedly include a $200,000 Bentley and a Mercedes Benz G-Class with a down payment of $142,680.
Nine others have been charged, including Rashad Avery and Tara Batson of Atlanta, and Chris Elvins Constant of Ft. Pierce. Nearly all have been arrested, though authorities are seeking Rise Robinson. Wire fraud charges carry a maximum of 20 years per count, while money laundering carries up to 10 years.
The Department of Justice created the COVID-19 Fraud Enforcement Task Force in May 2021 to investigate fraud involving relief programs. This case is being prosecuted by Assistant U.S. Attorneys Kelly K. Connors and Sarah E. Klapman, with assistance from the FBI and the Department of Labor’s Office of Inspector General. Those with information about COVID-19 fraud are encouraged to contact the National Center for Disaster Fraud.
