U.S. Attorney Duane A. Evans has announced that Clifton C. James, a 50-year-old resident of New Orleans, pled guilty to charges related to the CARES Act fraud, money laundering, and false tax filing. The plea was entered on January 15, 2025, before U.S. District Judge Jane Triche-Milazzo.

The CARES Act, signed into law on March 27, 2020, aimed to provide emergency assistance to small business owners affected by the COVID-19 pandemic through programs such as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). According to court documents, James made false statements on April 30, 2020, to secure an $86,800 PPP loan for his business. On July 13, 2020, he stole $149,900 from the SBA using a fraudulent application under Crescent City Tax Services, LLC. These funds were then laundered through the purchase of an automobile in California. Additionally, James filed a false tax document with the IRS claiming an income of $1.00 for 2019.

James is scheduled for sentencing on April 23, 2025. He faces up to five years in prison for each charge of making false statements and filing a false tax document and up to ten years for each charge of money laundering and theft of government funds. Each charge also carries potential fines up to $250,000 and additional penalties.

This case was investigated by the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. The PRAC oversees federal COVID-19 response spending and aims to detect fraud across various programs including the PPP. U.S. Attorney Evans commended the efforts of the U.S. Department of Veterans Affairs - Office of Inspector General and the IRS - Criminal Investigation in this investigation.

Assistant U.S. Attorney Edward J. Rivera from the Financial Crimes Unit is leading the prosecution.

For more information about the Department of Justice's response to COVID-19 or to report suspected fraud related to COVID-19 relief funds, visit their website or contact their hotline.