A Maryland accountant has been sentenced to three years in federal prison for his role in a scheme that submitted more than $24 million in fraudulent COVID-19 relief loan applications. Harold Dotson, 54, of Gaithersburg, was also ordered by U.S. District Judge Richard D. Bennett to pay over $24.8 million in restitution and will serve three years of supervised release, including six months of home confinement.
The sentencing was announced by Kelly O. Hayes, U.S. Attorney for the District of Maryland, along with Special Agent in Charge William J. DelBagno of the FBI’s Baltimore Field Office.
According to court documents and Dotson’s plea agreement, from April 2020 through January 2022 he participated in several wire fraud conspiracies related to pandemic relief funds under the CARES Act. The CARES Act provided emergency financial support to businesses affected by the COVID-19 pandemic through programs such as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL). These programs were designed to help small businesses retain employees and cover essential expenses.
Dotson owned H&M Tax Service LLC, also known as H&M Financial Group, where he used his position as an accountant and tax preparer to prepare numerous false EIDL and PPP applications for businesses that did not exist legitimately. The fraudulent applications included fabricated details about employee numbers, payroll costs, and revenue figures.
He also created false Internal Revenue Service tax forms for co-conspirators, including Ahmed Sary of Brooklyn, Maryland. "In return, Dotson received a percentage of the fraudulent loan proceeds, ranging from 2 to 27 percent," according to information from prosecutors.
Authorities said Dotson personally received more than $828,000 from these schemes and spent much of it gambling at casinos in Maryland and on a trip to Las Vegas.
Dotson’s activities with Sary resulted in over $14.8 million being disbursed through more than 85 fraudulent PPP loans. Another conspiracy involving Dotson led to at least 30 additional fraudulent loans totaling over $6.4 million. Fraudulent EIDL applications prepared by Dotson resulted in another $3.5 million being distributed.
In June 2024, Judge Bennett sentenced Sary to seven years in federal prison for his role in the same conspiracy.
The case was investigated by the District of Maryland Strike Force—one of five such groups established nationwide by the Department of Justice to target large-scale COVID-19 relief fraud involving criminal organizations and transnational actors using prosecutor-led teams supported by data analysts.
"U.S. Attorney Hayes commended the FBI, SBA-OIG and the Baltimore County Police Department for their work in the investigation." She also thanked Assistant U.S. Attorneys Paul A. Riley and Joseph L. Wenner for prosecuting the case and recognized Paralegal Specialist Julie Jarman and Joanna Huber for their assistance.
Further information about reporting suspected pandemic-related fraud can be found at justice.gov/coronavirus or through the National Center for Disaster Fraud Hotline at 866-720-5721.
