Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that Jacob Carter has been sentenced to 11 years in prison. Carter was found guilty of leading a scheme to defraud the U.S. Small Business Administration (SBA) of over $7.6 million. U.S. District Judge Nelson S. Román handed down the sentence after Carter and his co-defendants were convicted on February 9, 2024, for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.
Acting U.S. Attorney Matthew Podolsky stated: “Jacob Carter took advantage of a taxpayer-funded program intended to help small businesses in desperate need during the COVID-19 pandemic. Some small businesses that were eligible for and deserving of this money did not get it because funds ran out. Carter used his ill-gotten gains for far more selfish pursuits, including expensive jewelry and a Lamborghini."
The SBA is responsible for providing assistance to American small businesses through programs like the Economic Injury Disaster Loan (EIDL) Program. During the COVID-19 pandemic, Congress expanded this program to offer low-interest loans up to $2 million before May 2020 and up to $150,000 starting in May 2020.
From March through July 2020, Carter and his co-defendants submitted over 1,000 fraudulent applications using stolen identities to obtain more than $10 million from the EIDL Program. They falsely claimed that these individuals owned businesses with ten or more employees when they did not own any businesses at all.
In addition to his prison term, Carter was sentenced to three years of supervised release and ordered to pay restitution amounting to $7,737,000 along with forfeiture totaling $1,720,950.
Co-defendant Crystal Ransom pled guilty earlier and received a two-year prison sentence followed by three years of supervised release with six months under home confinement. She was also ordered by the court to pay restitution amounting to $7,577,000 as well as forfeiture totaling $99,000.
Quadri Salahuddin and Anwar Salahuddin are scheduled for sentencing on March 26, 2025.
Podolsky commended the efforts of both the Federal Bureau of Investigation and Air Force Office of Special Investigations in bringing about this outcome.
The case is being prosecuted by Assistant U.S Attorneys Jeffrey C Coffman Courtney L Heavey Jared D Hoffman from White Plains Division
