A Michigan man has been sentenced to two years in prison for a scheme to defraud the COVID-19 pandemic assistance programs of more than $2.3 million.
Jabari Long, 46, pleaded guilty to a charge of conspiring to commit wire fraud. The scheme involved Long using a contracting business to secure fraudulent loans from the COVID-era Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) initiatives.
In total, Long obtained $2,187,000 from PPP and $150,000 from EIDL, the Department of Justice (DOJ) said in a Sept. 28 statement.
PPP aimed to help businesses retain their workforce amid the COVID-19 crisis, while EIDL provided loans and advances to help businesses recover from the pandemic’s economic impacts. To secure the loans, Long claimed that his business had 50 workers and that its average monthly payroll expenses totaled $875,000….