Three Georgians have been sentenced to prison for their participation in a multimillion-dollar COVID-19 Paycheck Protection Program fraud.
Teldrin Foster, 42, of Atlanta, John Gaines, 59, of Marietta, and Carla Jackson, 56, of Tucker, are just three of the 23 people convicted in connection with the scheme.
According to U.S. Attorney Ryan K. Buchanan, from April 2020 through August 2020, Foster worked with co-defendant Darrell Thomas and others to obtain at least fourteen fraudulent loans.
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Each of the 14 companies received a PPP loan between $700,000 and $850,000, totaling more than $11 million.
The PPP loan applications showed that each business had between 59 and 69 employees and generated approximately $295,000 to $342,000 in average monthly payroll costs.
However, the reality was that none of the companies had employees or payroll costs.
Foster was sentenced to ten years and one month in prison, followed by three years of supervised release.
He was also ordered to pay $9,606,627 in restitution.
Gaines was sentenced to five years and three months in prison, followed by three years of supervised release.
He was ordered to pay $806,710 in restitution.
Jackson was sentenced to three years in prison, followed by two years of supervision.
She was awarded $335,238 in damages.
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“Foster, Gaines and Jackson, along with 20 other defendants already convicted for their participation in this criminal scheme, took advantage of a relief program designed to keep small businesses afloat during the COVID-19 pandemic,” Buchanan said. “These defendants have been held responsible for depriving this program of resources desperately needed by some of the most vulnerable in our society. And their sentences send a clear message that fraud against the government will not be tolerated.”
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