Theodore S. Hertzberg United States Attorney for the Northern District of Georgia | Department of Justice
Ten individuals have been charged in a federal case alleging a $9 million fraud and money laundering scheme involving government loan programs administered by the U.S. Small Business Administration. The indictment includes allegations that the defendants submitted false applications to obtain Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans between November 2020 and June 2023, using real companies’ information without authorization.
United States Attorney Theodore S. Hertzberg stated, “Fraud schemes, like the ones perpetrated by these defendants, stole valuable resources meant to assist small businesses and citizens during difficult times. The U.S. Attorney’s Office is committed to prosecuting and punishing cold-hearted criminals who target government aid programs for their personal gain.”
According to authorities, the loan applications contained fabricated details regarding company size, payroll needs, revenue, and other key information. Supporting documents such as tax records and bank statements were allegedly falsified. In some cases, stolen identification from business owners or officers was used without their knowledge.
FBI Atlanta Special Agent in Charge Paul Brown commented on the investigation: “PPP loans were intended to provide critical relief to small businesses. FBI Atlanta and our law enforcement partners will continue to aggressively pursue anyone who exploited the pandemic as a means to enrich themselves.”
After obtaining the funds, investigators allege that cash withdrawals and luxury purchases were made with proceeds from the fraudulent loans. Specific expenditures cited include $200,000 for a 2022 Bentley Bentayga; $350,000 for a 2020 McLaren 720S convertible; $142,680 for a down payment on a 2023 Mercedes Benz G-Class Wagon; and $180,645 for annual rent on a luxury home.
The main defendant named is David Nathaniel Black, Jr., of Newnan, Georgia. He faces multiple charges including wire fraud—each count carrying up to 20 years in prison—aggravated identity theft with mandatory two-year sentences per count, and over 100 counts of money laundering which could result in up to ten years per count if convicted.
Additional defendants charged with money laundering are Rashad Avery (Atlanta), Tara Batson (Atlanta), Chris Elvins Constant (Ft. Pierce), Nicole Cooley (Baltimore), Reginald Douglas (Atlanta), Yvenord Guerilus (Miami), Carson Merice (Miami), Rise Robinson (Atlanta), and George Thompson (Atlanta). Black and Constant also face conspiracy charges related to laundering proceeds from an unemployment insurance fraud scheme.
Mathew Broadhurst of the Department of Labor’s Office of Inspector General stated: “An important mission of the Office of Inspector General is to investigate allegations of unemployment insurance fraud targeting state workforce agencies. We will continue to work with our law enforcement partners to investigate these types of allegations.”
Nine defendants appeared in federal court this week following arrests. Authorities are seeking information regarding Rise Robinson’s whereabouts through tips.fbi.gov or by phone at 800-CALL-FBI.
The Department of Justice has taken measures since May 2021 through its COVID-19 Fraud Enforcement Task Force https://www.justice.gov/coronavirus to coordinate efforts across agencies in investigating pandemic-related fraud.
Members of the public can report suspected COVID-19 relief fraud via the National Center for Disaster Fraud Hotline at 866-720-5721 or online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Assistant United States Attorneys Kelly K. Connors and Sarah E. Klapman are prosecuting this case.
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