News Summary
Ten individuals have been charged for their roles in a fraudulent scheme that misappropriated over $9 million from pandemic relief programs. They allegedly submitted unauthorized applications for the Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP), using false information and stolen personal identification. The primary defendant, David Nathaniel Black, Jr., faces multiple counts of fraud and identity theft. The case underscores the government’s ongoing efforts to combat pandemic-related fraud, with the U.S. Department of Justice taking the lead in prosecution.
Atlanta, Georgia – Ten individuals have been charged in federal court for their alleged roles in a fraudulent scheme that targeted pandemic relief programs, leading to the theft of over $9 million in government funds. The U.S. Department of Justice announced the charges, which stem from activities involving the Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) between November 2020 and June 2023.
The defendants are accused of submitting fraudulent and unauthorized loan applications to secure financial assistance intended to help businesses during the COVID-19 pandemic. Prosecutors allege that these applications contained false information regarding the businesses’ operations, payroll, revenue, and employee counts, with supporting documents that included forged tax records, bank statements, and payroll files. In some cases, stolen personal identification information was used to submit these applications without consent from the legitimate owners of the businesses.
Once the loans were acquired, it is alleged that the defendants wasted no time in withdrawing substantial amounts of cash and purchasing luxury items. This included high-end vehicles and expensive real estate properties, indicating a significant misuse of the funds meant to support struggling businesses.
Lead Defendant and Charges
David Nathaniel Black, Jr., 31, from Newnan, Georgia, has been identified as the lead defendant in the case. He faces a staggering total of 17 counts of wire fraud, 17 counts of aggravated identity theft, and over 100 counts of money laundering. Additionally, Black and another defendant, Chris Elvins Constant, are charged in connection with a conspiracy related to a fraudulent unemployment insurance scheme.
Recent Court Appearances
This week, nine of the ten defendants appeared in federal court to face the charges. One individual, Rise Robinson, remains at large, and authorities are actively pursuing her capture. The ongoing investigation has been carried out by the FBI and the U.S. Department of Labor, Office of Inspector General, showcasing a robust effort to tackle pandemic-related fraud.
Background on COVID-19 Fraud Enforcement
The COVID-19 Fraud Enforcement Task Force was established by the Department of Justice in 2021 as a direct response to the rise of fraudulent activities surrounding pandemic relief programs. This task force aims to combat the exploitation of government assistance initiatives designed to support citizens during the economic challenges caused by the pandemic. As noted, all defendants are presumed innocent until proven guilty in a court of law.
The U.S. government has been vigilant in monitoring and pursuing those who abuse these relief measures, and this case highlights the serious consequences faced by individuals who engage in such fraudulent behavior. With the pandemic relief funds being a lifeline for many businesses, the actions of these ten individuals serve as a stark reminder of the ongoing battle against fraud during economic crises.
As the legal proceedings unfold, the case is being prosecuted by Assistant U.S. Attorneys Kelly K. Connors and Sarah E. Klapman, who are tasked with presenting evidence of the alleged fraudulent activities to the court.
Deeper Dive: News & Info About This Topic
- The Citizen: Newnan Man and 9 Others Charged with $9 Million Federal Loan Fraud
- Fox 5 Atlanta: SEC Charges Georgia Lending Firm with $140M Ponzi Scheme
- Times-Herald: United Bank Fraud Experts Issue Urgent Warning
- Wikipedia: Fraud
- US News: Georgia Republican Running $140 Million Ponzi Scheme
- Encyclopedia Britannica: Fraud
- 11 Alive: Newnan Whataburger Employee Accused of Stealing Credit Card
- Google Search: Loan Fraud
Author: STAFF HERE AUGUSTA WRITER
AUGUSTA STAFF WRITER The AUGUSTA STAFF WRITER represents the experienced team at HEREAugusta.com, your go-to source for actionable local news and information in Augusta, Richmond County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Arts in the Heart Festival, Westobou Festival, and Masters Week. Our coverage extends to key organizations like the Augusta Metro Chamber of Commerce and Greater Augusta Arts Council, plus leading businesses in manufacturing and healthcare that power the local economy such as Textron Specialized Vehicles, Cardinal Health, and Nutrien. As part of the broader HERE network, including HEREAtlanta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
