A Missouri City resident has admitted to a wire fraud conspiracy involving pandemic loan applications, as announced by U.S. Attorney Nicholas J. Ganjei. Shawn Nicholas Young, 42, applied for loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program on behalf of his businesses and others'. These programs were managed by the Small Business Administration (SBA) to aid small businesses during the COVID-19 pandemic.
Young misrepresented business information to qualify for funding, using fake tax returns and backdated documents. He submitted over 100 fraudulent applications, seeking more than $9.5 million in relief funds and received kickbacks from approved co-conspirators.
Profiting $1.65 million from the scheme, Young used the money for personal expenses such as paying off his mortgage and purchasing a car. As part of his plea agreement, he will pay restitution to victims and forfeit his house and car.
U.S. District Judge Kenneth M. Hoyt is set to sentence Young on October 27, where he could face up to 20 years in federal prison and a maximum fine of $250,000. Young remains on bond until then.
The investigation was conducted by several agencies including the Federal Housing Finance Agency-Office of Inspector General (OIG), Treasury Inspector General for Tax Administration, Federal Deposit Insurance Corporation-OIG, SBA-OIG, Immigration and Customs Enforcement - Homeland Security Investigations with help from Fort Bend Sheriff’s Office and Harris County Constable’s Office, Precinct 1. Assistant U.S. Attorneys Stephanie Bauman and Shirin Hakimzadeh prosecuted the case.
The COVID-19 Fraud Enforcement Task Force was created to enhance efforts against pandemic-related fraud by coordinating resources across government agencies. It aims to investigate domestic and international criminal actors involved in fraud schemes related to relief programs.
For more information on combating fraud or reporting attempted COVID-19 fraud, visit Justice.gov/Coronavirusand Justice.gov/Coronavirus/CombatingFraud or contact the Department of Justice's National Center for Disaster Fraud Hotline via their Web Complaint Form.
