Jemel Lyles, a 43-year-old resident of Washington, DC, has entered a guilty plea in federal court to charges of wire fraud and aggravated identity theft. The announcement was made by Kelly O. Hayes, U.S. Attorney for the District of Maryland, alongside Acting Special Agent in Charge Amanda M. Koldjeski from the FBI's Baltimore Field Office.
Lyles admitted to submitting fraudulent applications for six CARES Act loans between April 2020 and February 2021 while on supervised release for a previous federal felony fraud conviction. He inflated employee numbers and payroll figures in loan applications to secure Paycheck Protection Program (PPP) funds illegally. Despite regulations disqualifying businesses with prior felony fraud convictions from receiving PPP funds, Lyles obscured his ownership interests or control over these funds to bypass this restriction.
The fraudulent activities included using the identity of an acquaintance to apply for loans under false pretenses and misusing funds for personal expenses such as a home gym, jewelry, and personal investments. The total amount defrauded was approximately $281,900.
For his wire fraud conviction, Lyles faces up to 20 years in prison followed by five years of supervised release. His aggravated identity theft charge carries a mandatory two-year sentence consecutive to any other penalties he receives. Additionally, he may face up to two more years in prison for violating terms of his supervised release. Sentencing is scheduled for September 10 before U.S. District Judge Deborah L. Boardman.
This case is part of the efforts by the District of Maryland Strike Force, one of five established nationwide by the Department of Justice to combat COVID-19-related frauds including those linked with the CARES Act.
U.S. Attorney Hayes praised the FBI's role in investigating this case and acknowledged Assistant U.S. Attorney Joseph L. Wenner along with Paralegal Specialist Joanna B.N. Huber for their contributions.
For further details on reporting pandemic-related fraud or learning about available resources from the Maryland U.S. Attorney’s Office, individuals are encouraged to visit their official website or contact relevant authorities through provided channels.
