Ten people have been charged in Atlanta with federal offenses related to a scheme that targeted government loan programs, including the U.S. Small Business Administration’s Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). Two of those individuals also face charges for laundering proceeds from a fraudulent unemployment insurance operation.
“Fraud schemes, like the ones perpetrated by these defendants, stole valuable resources meant to assist small businesses and citizens during difficult times,” said United States Attorney Theodore S. Hertzberg. “The U.S. Attorney’s Office is committed to prosecuting and punishing cold-hearted criminals who target government aid programs for their personal gain.”
“PPP loans were intended to provide critical relief to small businesses,” said FBI Atlanta Special Agent in Charge Paul Brown. “FBI Atlanta and our law enforcement partners will continue to aggressively pursue anyone who exploited the pandemic as a means to enrich themselves.”
“An important mission of the Office of Inspector General is to investigate allegations of unemployment insurance fraud targeting state workforce agencies. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General.
According to court documents and statements made by U.S. Attorney Hertzberg, between November 2020 and June 2023, David Nathaniel Black, Jr., along with others, allegedly used information from real companies without authorization to submit false applications for EIDL and PPP loans. The applications reportedly included inaccurate details about company size, financial need, payroll figures, revenue data, and intended use of funds. These submissions were supported by forged tax records, bank statements, and payroll documentation. Authorities allege that stolen identification information from business owners or officers was used without their knowledge in order to file these applications.
Prosecutors say the group obtained more than $9 million through fraudulent loans. After receiving funds, members are accused of making cash withdrawals and purchasing luxury items such as high-end vehicles and expensive homes using proceeds from the scheme.
Examples cited include purchases such as $200,000 for a 2022 Bentley Bentayga; $350,000 for a 2020 McLaren 720S convertible; $142,680 as a down payment on a 2023 Mercedes Benz G-Class Wagon; and $180,645 toward annual rent for a luxury home.
David Nathaniel Black Jr., 31 years old from Newnan, Georgia faces multiple charges: 17 counts each of wire fraud (each carrying up to 20 years’ imprisonment), aggravated identity theft (with mandatory consecutive two-year terms per count), and over 100 counts of money laundering (up to ten years per count).
Other individuals charged with various counts of money laundering are Rashad Avery (Atlanta), Tara Batson (Atlanta), Chris Elvins Constant (Ft. Pierce), Nicole Cooley (Baltimore), Reginald Douglas (Atlanta), Yvenord Guerilus (Miami), Carson Merice (Miami), Rise Robinson (Atlanta), and George Thompson (Atlanta). Black and Constant also face conspiracy charges related to laundering proceeds from an unemployment insurance scam; this offense carries up to twenty years’ imprisonment.
All defendants are presumed innocent until proven guilty in court.
The Federal Bureau of Investigation and Department of Labor’s Office of Inspector General are leading the investigation into this case.
Assistant United States Attorneys Kelly K. Connors and Sarah E. Klapman are prosecuting.
Nine defendants appeared in federal court following arrest; authorities seek information regarding Rise Robinson’s whereabouts via tips.fbi.gov or by calling 800-CALL-FBI.
In May 2021 the Department of Justice formed the COVID-19 Fraud Enforcement Task Force in partnership with other agencies across government to address pandemic-related fraud through enhanced coordination efforts https://www.justice.gov/coronavirus.
Anyone with information about COVID-19 related fraud can contact the National Center for Disaster Fraud at 866-720-5721 or submit details online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
