HARRISBURG, Pa. (WHP) — Four men have been sentenced as part of their roles in a scheme in which they received over $11.5 million in COVID relief funds from fraudulent business loan applications.
All four pleaded guilty to their roles in the scheme. U.S. District Judge Jennifer Wilson ordered them to each pay millions in restitution, according to a release from the U.S. Department of Justice.
Joshua White, 44, of Yoe, Pennsylvania, was sentenced to eight years in prison.Creed White, 67, of Freeland, Maryland, was sentenced to 10 years in prison. Creed White is Joshua White’s father.Joseph Bailey, 54, of York, Pennsylvania, was sentenced to 46 months in prison. Kester Murray, 40, of Emigsville, Pennsylvania, was sentenced to two years of probation.
The investigation focused on Creed White, who submitted about 120 fraudulent applications for federal financial assistance on behalf of 18 dormant businesses.
According to the release, 40 of those applications were approved, leading to $11.5 million being transferred to White’s bank accounts.
SEE PREVIOUS COVERAGE | U.S. Attorney charges man for scheme costing $11.5M in pandemic funds
Creed White filed the applications in the names of various third parties, whose information he received from Joshua White.
Bailey and Murray created fraudulent business, banking and tax records to support the loan applications, the release said.
“When individuals manipulate pandemic relief programs for personal gain, they undermine public trust and divert critical resources from legitimate small businesses,” Amaleka McCall-Brathwaite, a special agent from the U.S. Small Business Administration Office of Inspector General, said in the release.
Comment with Bubbles
BE THE FIRST TO COMMENT
“These sentencings underscore that fraud against federal relief programs will be aggressively investigated and prosecuted,” McCall-Brathwaite said.