Jacob Schneider, a 42-year-old resident of Saint Paul, Minnesota, has been sentenced to one year and one day in prison. He is also required to pay $555,292.88 in restitution after pleading guilty to wire fraud related to COVID-19 relief funds. Schneider self-reported his fraudulent activities to authorities.
The Paycheck Protection Program (PPP), part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law on March 27, 2020, aimed to assist small businesses affected by the pandemic. Schneider submitted a fraudulent PPP application for "Piddonkadonk, LLC," falsifying payroll information and misrepresenting the use of funds. He received $530,567 in fraudulent funds.
United States Attorney Matt Kirsch stated, "This case is another example of someone who stole benefits intended for struggling taxpayers and used them for personal gain." However, he noted that Schneider's voluntary admission was considered in his sentencing. Kirsch encouraged others involved in similar frauds to come forward.
Marc DellaSala from the U.S. Secret Service emphasized their commitment to protecting financial relief programs from exploitation. He remarked on the collaboration with task force partners to apprehend those undermining financial security.
The sentencing was overseen by United States District Court Judge Nina Y. Wang. The investigation was conducted by the United States Secret Service, while Assistant United States Attorney Nicole Cassidy managed the prosecution.
In July 2023, the District of Colorado’s U.S. Attorney’s Office was chosen as one of five national COVID-19 Fraud Strike Force Teams by the Attorney General. This initiative aims to combat large-scale pandemic relief fraud through coordinated efforts involving law enforcement and prosecutorial resources.
For reporting suspected COVID-19 related fraud, individuals can contact the Department of Justice’s National Center for Disaster Fraud Hotline or submit a complaint via their website.
