In a recent federal court ruling, 53-year-old Larico D. Steele, who identified himself as a music producer, was sentenced to one year in prison and three years of supervised release for his role in a scheme to defraud the Paycheck Protection Program (PPP). He was also ordered to pay more than $150,000 in restitution to the Small Business Administration. The case is part of a broader investigation that has led to the imprisonment of over 30 individuals for similar offenses.
According to the U.S. Attorney’s Office, Steele pleaded guilty to conspiracy to commit wire fraud and money laundering. He worked with Edward Whitaker to submit a fraudulent loan application for Steele Entertainment, LLC, inflating payroll information to misrepresent the number of employees and their wages. After receiving the funds, Steele sent approximately 25 percent back to Whitaker through cashier’s checks and a shell bank account.
U.S. Attorney W. Ellis Boyle criticized the scheme, stating that the program was intended to support legitimate businesses affected by COVID-related closures, and that individuals who exploited it acted unlawfully. IRS Special Agent in Charge Donald Trey Eakins highlighted the continued efforts to hold accountable those who misuse federal programs for personal gain.
The CARES Act was created to provide emergency relief to Americans affected by the economic impact of the COVID-19 pandemic, including up to $649 billion in forgivable loans for small businesses through the PPP. Steele’s case is part of the larger Loanstarters scheme, which led to Edward Whitaker receiving a 10-year prison sentence last December as one of its ringleaders. Other participants in the scheme have also been sentenced, highlighting the widespread misuse of relief funds intended to support struggling businesses.
U.S. District Judge James C. Dever III issued the sentence, according to U.S. Attorney W. Ellis Boyle of the Eastern District of North Carolina. The investigation was conducted by the IRS Criminal Investigation division, with Assistant U.S. Attorney David G. Beraka handling the prosecution. Additional information on this case and related matters is available on the U.S. District Court for the Eastern District of North Carolina’s website or via PACER under Case No. 5:25-CR-00123-D.
