Atlanta man arrested for $3M pandemic relief fraud scheme
The Brief
Ian Patrick Jackson was arrested for orchestrating schemes to fraudulently obtain over $3 million in pandemic relief funds, facing multiple felony charges including bank fraud and money laundering.
Jackson allegedly conspired with another individual to recruit business owners to submit fraudulent PPP loan applications, using fake tax documents and false employee claims, and diverted funds for personal expenses.
If convicted, Jackson faces significant prison time, with up to 30 years for bank fraud and conspiracy charges, and up to 20 years for wire fraud and money laundering counts.
ATLANTA - A 37-year-old Atlanta man was arrested and appeared in federal court on Monday on charges that he orchestrated a series of schemes to fraudulently obtain more than $3 million in pandemic relief funds intended to support struggling businesses during the COVID-19 crisis.
The backstory
Ian Patrick Jackson was indicted by a federal grand jury on May 6 and now faces seven felony counts, including conspiracy to commit bank fraud, bank fraud, wire fraud, and money laundering. He made his initial appearance before U.S. Magistrate Judge Regina D. Cannon.
Federal prosecutors allege Jackson conspired with another Atlanta man to recruit at least nine business owners to submit fraudulent Paycheck Protection Program (PPP) loan applications. The applications allegedly included fake tax documents and falsely claimed each business had 16 employees with monthly payrolls of $120,000. Each business received $300,000 in PPP funds.
After receiving the funds, the business owners reportedly wrote "payroll" checks to individuals who did not work for them. The money was then allegedly diverted, with some of it passed to a co-conspirator and ultimately to Jackson.
In addition to the conspiracy, Jackson is accused of masterminding three other schemes, including:
Using fake tax forms and doctored bank statements to apply for a $237,500 PPP loan;
Submitting forged identification and false revenue statements to fraudulently apply for about $100,000 in Economic Injury Disaster Loans (EIDL) and PPP loans;
Fraudulently securing $240,035 in PPP funds and $125,000 in EIDL loans and grants.
What they're saying
Prosecutors say Jackson spent the funds on personal expenses including restaurant meals, spa services, phone and credit card bills, an Aruba vacation, and cash withdrawals.
"Ian Jackson took advantage of government programs meant to support American businesses struggling during a national emergency and world-wide pandemic," said Matthew R. Galeotti, head of the Justice Department's Criminal Division. "Today's charges reveal that Jackson was the mastermind behind numerous schemes, utilizing a variety of fraudulent tools and techniques, to lie to the SBA."
"Jackson's arrest caps a lengthy investigation that involved multiple defendants and more than $3 million in stolen funds intended to help struggling Americans during a national health crisis," said U.S. Attorney Theodore S. Hertzberg. "These charges demonstrate our office's commitment to collaborate closely with our law enforcement partners to prosecute fraudsters who pilfered CARES Act funds."
FBI Atlanta Special Agent in Charge Paul Brown said the agency will continue pursuing individuals who abused pandemic relief programs. "Lying to gain access to economic stimulus funds for personal gain will be met with justice," Brown said.
SBA Office of Inspector General Deputy IG Sheldon Shoemaker added, "While hard-working small business owners were looking for lifelines... the defendant and his conspirators were scheming to steal the very funds made available to them through SBA's pandemic response programs."
What's next
If convicted, Jackson faces a maximum of 30 years in prison for each of the bank fraud and conspiracy charges, and up to 20 years for each of the wire fraud and money laundering counts. Sentencing would follow federal guidelines but is ultimately at the discretion of the court.
The Source
The U.S. Attorney's Office for the Northern District of Georgia provided the details for this article.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
Trump administration urges court not to dismiss case against Wisconsin judge
MADISON, Wis. (AP) — The Trump administration argued Monday that charges should not be dropped against a Wisconsin judge who was indicted for allegedly helping a man who is in the country evade U.S. immigration agents seeking to arrest him in her courthouse. Attorneys for the U.S. Department of Justice urged a federal judge to reject a motion filed by Milwaukee County Circuit Judge Hannah Dugan seeking to dismiss the charges against her, saying doing so would be 'unprecedented" and allow judges to be above the law. Dugan faces a July 21 trial in the case that escalated a clash between Trump's administration and opponents over the Republican president's sweeping immigration crackdown. Trump critics contend that Dugan's arrest went too far and that the administration is trying to make an example out of her to discourage judicial opposition to the crackdown. The accusations against Dugan Dugan is charged with concealing an individual to prevent arrest, a misdemeanor, and obstruction, which is a felony. Prosecutors say she escorted Eduardo Flores-Ruiz, 31, and his lawyer out of her courtroom through a back door on April 18 after learning that U.S. Immigration and Customs Enforcement agents were in the courthouse seeking to arrest him for being in the country illegally. She could face up to six years in prison and a $350,000 fine if convicted on both counts. Her attorneys say she's innocent. They filed a motion last month to dismiss the case, saying she was acting in her official capacity as a judge and therefore is immune to prosecution. They also maintain that the federal government violated Wisconsin's sovereignty by disrupting a state courtroom and prosecuting a state judge. Trump administration response Justice Department attorneys responded in a court filing Monday, saying dismissing the charges against the judge on the grounds that she is immune would be unprecedented and would ignore 'well-established law that has long permitted judges to be prosecuted for crimes they commit.' 'Such a ruling would give state court judges carte blanche to interfere with valid law enforcement actions by federal agents in public hallways of a courthouse, and perhaps even beyond,' Justice Department attorneys argued. 'Dugan's desired ruling would, in essence, say that judges are 'above the law,' and uniquely entitled to interfere with federal law enforcement.' Dugan's attorney, Craig Mastantuono, did not immediately respond to messages seeking comment. In her motion to dismiss, Dugan argued that her conduct amounted to directing people's movement in and around her courtroom, and that she enjoys legal immunity for official acts she performs as a judge. She also accused the federal government of violating Wisconsin's sovereignty by disrupting a state courtroom and prosecuting a state judge. Dugan's case is similar to one brought during the first Trump administration against a Massachusetts judge, who was accused of helping a man sneak out a courthouse back door to evade a waiting immigration enforcement agent. That case was eventually dismissed. The case background According to prosecutors, Eduardo Flores-Ruiz illegally reentered the U.S. after being deported in 2013. He was charged in March with misdemeanor domestic violence in Milwaukee County and was in Dugan's courtroom for a hearing in that case on April 18. Dugan's clerk alerted her that immigration agents were in the courthouse looking to arrest Flores-Ruiz, prosecutors allege in court documents. According to an affidavit, Dugan became visibly angry at the agents' arrival and called the situation 'absurd.' After discussing the warrant for Flores-Ruiz's arrest with the agents, Dugan demanded that they speak with the chief judge and led them away from the courtroom. She then returned to the courtroom, was heard saying something to the effect of 'wait, come with me,' and then showed Flores-Ruiz and his attorney out a back door, the affidavit says. The immigration agents eventually detained Flores-Ruiz outside the building following a foot chase. Dugan, 66, was arrested by the FBI on April 25 at the courthouse. A grand jury indicted Dugan on May 13 and she pleaded not guilty on May 15. Dugan defense fund A legal defense fund created by Dugan supporters to help pay for her high-profile defense attorneys has raised more than $137,000 in three weeks from more than 2,800 donors. Her legal team includes former U.S. Attorney Steve Biskupic and former U.S. Solicitor General Paul Clement. Both were appointed by Republican presidents. She has also hired prominent attorneys in Milwaukee and Madison. 'This is an impressive show of support for the defense fund, highlighting that the public believes in protecting a fair and independent judiciary,' former Supreme Court Justice Janine Geske, the fund's trustee, said Monday. 'The fund will continue to raise grassroots donations and uphold strict guidelines to ensure transparency and accountability.' Dugan is not required to list the donor names until she submits her annual financial disclosure form, which is due in April. Numerous people are prohibited from donating, including Milwaukee County residents; attorneys who practice in the county; lobbyists; judges; parties with pending matters before any Milwaukee County judge; and county employees.
Yahoo
18 minutes ago
- Yahoo
Union leader faces federal charge of conspiracy to impede an officer during L.A. ICE raids
Federal authorities on Monday charged David Huerta, president of Service Employees International Union California, in a criminal complaint with conspiracy to impede an officer in connection with his alleged actions during an immigration enforcement raid last week. Huerta, 58, has been held at the Metropolitan Detention Center in downtown L.A. since Friday and is expected to make his initial appearance in federal court on Monday afternoon. He is facing a felony charge that carries up to six years in federal prison, according to the U.S. attorney's office in L.A. His attorney did not immediately respond to a request for comment. Huerta was detained and injured while documenting a workplace immigration raid in downtown L.A. on Friday. He was treated at a hospital and transferred to the Metropolitan Detention Center. Nine people tied to the protests have been charged federally, according to the U.S. attorney's office in L.A. Among them is Russell Gomez-Dzul, a Mexican national, who the White House said was arrested on suspicion of assaulting a federal officer. Rallies are scheduled in more than a dozen cities across the U.S., including in L.A., by union members and other supporters demanding Huerta's release and an end to the workplace immigration raids. California Democratic Sens. Adam Schiff and Alex Padilla sent a letter Monday to the Department of Homeland Security and the Department of Justice demanding a review of Huerta's arrest. The U.S. attorney for Los Angeles, Bill Essayli, a staunch Trump ally and hard-line conservative who was appointed in April, last week posted a photo on X of Huerta, hands behind his back, after the arrest. Essayli accused Huerta of obstructing the access of federal authorities to a facility where they were conducting a search warrant. "Let me be clear: I don't care who you are — if you impede federal agents, you will be arrested and prosecuted," Essayli wrote on X. "No one has the right to assault, obstruct, or interfere with federal authorities carrying out their duties." The labor union said in a statement Friday that Huerta was detained 'while exercising his First Amendment right to observe and document law enforcement activity.' Schiff, who referred to Huerta as "a very prominent union leader in Los Angeles, a very respected voice," was waiting to attend the labor leader's hearing Monday. Schiff spoke with reporters in front of a building graffitied in expletives aimed at Immigration and Customs Enforcement. He said that Huerta was "exercising his lawful right to be present and observe these immigration raids." 'It's obviously a very traumatic thing, and now that it looks like the Justice Department wants to try and make an example out of him, it's all the more traumatic," Schiff said, when asked how Huerta was doing. "But this is part of the Trump playbook. They selectively use the Justice Department to go after their adversaries. It's what they do.' According to the criminal complaint, U.S. Magistrate Judge Margo A. Rocconi authorized search warrants Thursday for four business locations 'suspected of unlawfully employing illegal aliens and falsifying employment records related to the status of its employees.' In an affidavit filed with the federal complaint, a supervisory special agent with Homeland Security Investigations, whose name was redacted, said news quickly spread about 'ICE raids' taking place throughout L.A. According to the complaint, Huerta arrived at Ambiance Apparel in the downtown Los Angeles Fashion District before noon Friday, joining several other protesters. The company was one of the sites of a workplace raid. 'The protesters, including HUERTA appeared to be communicating with each other in a concerted effort to disrupt the law enforcement operations,' the agent wrote. The agent wrote that Huerta was yelling at and taunting officers and later sat cross-legged in front of a vehicle gate to the location where law enforcement authorities were serving a search warrant. 'In addition to sitting in front of the gate, HUERTA at various times stood up and paced in front of the gate, effectively preventing law enforcement vehicles from entering or exiting the premises through the gate to execute the search warrant,' the agent wrote in the affidavit. 'As far as I was aware, this gate was the only location through which vehicles could enter or exit the premises.' The agent wrote that they told Huerta that, if he kept blocking the Ambiance gate, he would be arrested. Huerta responded that he couldn't hear the agent through his mask, according to the affidavit. Huerta used a curse word, the agent wrote. According to the complaint, as a white law enforcement van tried to get through the gate, Huerta stood in its path. Because Huerta 'was being uncooperative, the officer put his hands on HUERTA in an attempt to move him out of the path of the vehicle.' 'I saw HUERTA push back, and in response, the officer pushed HUERTA to the ground,' the agent wrote. 'The officer and I then handcuffed HUERTA and arrested him.' Huerta on Friday released a statement through his union, saying: 'What happened to me is not about me; This is about something much bigger. 'This is about how we as a community stand together and resist the injustice that's happening. Hard-working people, and members of our family and our community, are being treated like criminals. We all collectively have to object to this madness because this is not justice. This is injustice. And we all have to stand on the right side of justice." Ahead of the Monday afternoon hearing, Huerta's cousin, Marta Gonzales, said she was there to represent the family. 'We're all heartbroken. We have family all over the world,' she said. 'Everyone's been watching.' Gonzales called Huerta 'a giant in our family.' 'This is so unjust,' she said. Asked about the protests over the weekend, she said she wondered if Huerta 'was the spark for a lot of it. It just angered so many people." Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.
Yahoo
19 minutes ago
- Yahoo
Epic Charter School superintendent resigns after major cuts to staff, facilities
Epic Charter School Superintendent Bart Banfield speaks at a meeting of the school's governing board on Nov. 14 at the 50 Penn Place complex in Oklahoma City. (Photo by Nuria Martinez-Keel/Oklahoma Voice) OKLAHOMA CITY — Amid mass layoffs of educators, the superintendent of Epic Charter School has resigned. The virtual charter school announced Monday that Bart Banfield has stepped down after six years in charge. Deputy Superintendent of Instruction Justin Hunt will lead the school in the interim while Epic's governing board searches for a permanent hire. Banfield led Epic during multiple turbulent periods while the school weathered criminal investigations, a forensic audit, a threat of closure and up-and-down enrollment. 'Bart Banfield's leadership has helped shape our school and strengthen its mission to provide an exceptional, personalized education for students across Oklahoma,' Ginger Casper, president of Epic's school board, said. 'We are grateful for his contributions and wish him continued success in his future endeavors.' During Banfield's tenure, Epic rapidly grew into the largest school district in Oklahoma in 2020 as families sought online schooling during the COVID-19 pandemic. Epic, now the state's third-largest district, has experienced declining enrollment ever since, which contributed to pay cuts and layoffs in October. District officials at the time said they overestimated their yearly enrollment by 4,000 students. This month, the school eliminated 357 teaching and administrative jobs in the latest round of staff cuts. It will close its in-person learning centers in Tulsa and Oklahoma City, as well. Epic's finances have been under the microscope for several years. The school's co-founders, Ben Harris and David Chaney, were charged in 2022 with embezzlement, racketeering and a litany of other financial crimes stemming from their leadership of Epic. Harris and Chaney deny allegations that they wrongfully pocketed millions of taxpayer dollars intended for Epic students. Former Epic CFO Josh Brock also was charged in the case and has agreed to testify against the co-founders in exchange for no prison time. Banfield succeeded Chaney as Epic's superintendent in 2019. He first joined Epic in 2014 as assistant superintendent of instruction. Harris and Chaney, whose company was paid to manage the school, remained intricately linked with Epic until 2021, when the school's governing board cut ties with them and their business. While facing threats of closure from the state, Epic's governing board and Banfield's administration implemented financial, organizational and transparency reforms that converted the school into a self-run entity without an outside company involved in its management. Until 2021, Harris and Chaney's company had run and profited from Epic since they founded the school in 2011. Hunt, who is now interim superintendent, experienced the transition along with Banfield. He was hired in 2017 as managing director of instruction and became deputy superintendent of instruction in 2021. 'Mr. Hunt brings with him a strong commitment to Epic's mission and a deep understanding of our community's needs,' Casper said. 'We are confident that his leadership will ensure continuity and stability as we move forward.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
