Ten Charged in $9 Million Federal Loan Fraud Scheme

Federal prosecutors have indicted ten individuals accused of orchestrating a scheme that defrauded the U.S. Small Business Administration’s COVID-19 relief programs of more than $9 million.

According to the U.S. Attorney’s Office, the defendants submitted fraudulent applications to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. Using stolen business identities, they allegedly fabricated employee numbers, revenue figures, and supporting documentation to obtain funds meant for struggling small businesses.

The scheme’s alleged ringleader, David Nathaniel Black, Jr., 31, of Newnan, is accused of converting taxpayer dollars into luxury purchases, including:

• A 2022 Bentley Bentayga for $200,000
• A 2020 McLaren 720S convertible for $350,000
• A 2023 Mercedes-Benz G-Class Wagon down payment of $142,680
• A $180,645 rent payment for a luxury home

“These funds were designed to help small businesses and workers survive the pandemic,” said U.S. Attorney Theodore S. Hertzberg. “Instead, they were stolen to bankroll extravagant lifestyles.”

Heavy Charges and Potential Sentences

Black faces 17 counts of wire fraud, each carrying up to 20 years in prison, 17 counts of aggravated identity theft (mandatory two years each), and over 100 counts of money laundering (up to 10 years each). He also faces conspiracy charges tied to a fraudulent unemployment insurance scheme.

Also charged with money laundering are:

• Rashad Avery, 36, of Atlanta
• Tara Batson, 31, of Atlanta
• Chris Elvins Constant, 25, of Ft. Pierce, Fla.
• Nicole Cooley, 35, of Baltimore, Md.
• Reginald Douglas, 32, of Atlanta
• Yvenord Guerilus, 24, of Miami, Fla.
• Carson Merice, 25, of Miami, Fla.
• Rise Robinson, 36, of Atlanta (still at large)
• George Thompson, 33, of Atlanta

Nine defendants have already appeared in federal court. The FBI is still seeking Rise Robinson, and anyone with information is urged to call 1-800-CALL-FBI or visit tips.fbi.gov.

Why It Matters

The pandemic relief programs were lifelines for small businesses. Each fraudulent claim took money away from local employers who needed support to keep staff on payroll, pay rent, and stay afloat.

Unfortunately, COVID-19 programs were quickly targeted by fraudsters nationwide, raising tough questions about oversight and accountability. Law enforcement continues to investigate fraud cases and recover stolen funds, but the community also plays a role.

What Residents Can Do

• Stay Alert to Identity Theft: Many fraudsters used real businesses’ information without permission. Business owners should monitor credit reports and SBA correspondence closely.
• Report Suspected Fraud: If you suspect someone in your community is committing loan fraud, report it directly to the FBI or the SBA Office of Inspector General.
• Support Local Businesses: Remember that legitimate small businesses bore the brunt of this fraud. Shopping locally and engaging with small enterprises strengthens the community.

This case serves as a reminder: federal relief programs are meant to help communities recover. When those funds are stolen, we all lose.