Louisiana man receives seven-year sentence for CARES Act PPP loan fraud

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Michael M Simpson Acting United States Attorney for the Eastern District of Louisiana | Department of Justice

Louisiana man receives seven-year sentence for CARES Act PPP loan fraud

A man from Laplace, Louisiana, Ernest X. Taylor, Jr., age 41, has been sentenced to 84 months in federal prison for making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The sentence was handed down by U.S. District Judge Darrel James Papillion on October 29, 2025.

The CARES Act was enacted on March 27, 2020, to provide relief during the COVID-19 pandemic. It included programs such as the Paycheck Protection Program (PPP), which offered forgivable loans through the U.S. Small Business Administration to help small businesses retain employees and cover certain expenses.

According to court documents, Taylor submitted false information in his PPP loan applications on two occasions in 2021. On March 2 and April 21 of that year, he claimed he had not been convicted of a felony involving fraud or similar offenses within the past five years. However, records show that Taylor pleaded guilty in July 2016 in the Eastern District of Virginia to conspiracy charges involving federal student loan fraud and mail fraud using stolen identities.

Based on these misrepresentations, Taylor received approximately $18,500 from each fraudulent PPP loan application.

In addition to his prison term, Taylor will serve five years of supervised release and must pay a $100 mandatory special assessment fee.

Acting U.S. Attorney Michael M. Simpson acknowledged the United States Secret Service for its investigative work and noted that Assistant U.S. Attorney Edward J. Rivera led the prosecution.

"Acting U.S. Attorney Simpson praised the work of the United States Secret Service in investigating this matter."

For more details about how the Department of Justice is addressing pandemic-related crimes or to report suspected COVID-19 fraud, visit https://www.justice.gov/coronavirus or contact the National Center for Disaster Fraud Hotline at 866-720-5721 or use their online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.