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Date: Sept. 14, 2026
Contact: newsroom@ci.irs.gov
New Orleans, LA – United States Attorney David I. Courcelle for the Eastern District of Louisiana announced today the successful prosecution of seven (7) defendants for Small Business Administration related fraud, resulting in seven (7) guilty pleas, four (4) of which have already been sentenced, making EDLA a key player in the nationwide enforcement surge led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration (“SBA”), and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP).
From June 12 to Sept. 1, federal prosecutors across the country facilitated fraud enforcement actions netting over 160 criminal defendants, including approximately 80 newly charged defendants, amounting to approximately $245 million dollars in intended loss to American taxpayers.
“Fraud against the United States government is a serious crime,” stated David I. Courcelle, United States Attorney for the Eastern District of Louisiana. “Especially egregious, is fraud that grossly undermines the financial assistance so desperately needed for small businesses to survive during one of the most vulnerable eras in our country, the COVID-19 pandemic. Highlighted today are successfully prosecuted fraud cases handled by the EDLA that involved the Small Business Administration Paycheck Protection and Economic Injury Disaster Loans programs. Successful prosecutions such as these are only made possible by the close partnership and shared mission of the U.S. Attorney’s Office and our law enforcement colleagues to safeguard public funds from fraud and prosecute those who steal such funds.”
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder-to-shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”
“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler.
“With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”
“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”
Again, in the Eastern District of Louisiana, 7 defendants pleaded guilty to defrauding the SBA and 4 of those defendants have been sentenced for the SBA-related fraud. These 7 defendants caused actual fraud losses to the SBA of approximately $1.8 million and intended fraud losses of approximately $2.6 million.
On July 21, 2026, Amanda Clayborne-Williams pled guilty to defrauding the Small Business Administration by submitting 12 false PPP and EIDL loan applications seeking $1.3 million. After submitting the false applications, Clayborne-Williams received $447,305 and spent the funds on personal expenses. She also pled guilty to committing tax evasion. Clayborne-Williams’s sentencing hearing is scheduled for Oct. 20, 2026. The case was investigated by Internal Revenue Service – Criminal Investigation and prosecuted by Assistant U.S. Attorney Maria M. Carboni.
On July 21, 2026, Jessica Lacour pled guilty to defrauding the Small Business Administration by submitting fake tax returns to obtain a $20,940 PPP loan. Lacour also admitted she used the identities of other people to obtain emergency Covid rental assistance totaling $71,740. The total fraud loss Lacour caused to the SBA is $92,680. Lacour is scheduled to be sentenced on Oct. 20, 2026. This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Chandra Menon.
On July 14, 2026, Marcel Gross of Slidell pled guilty to fraudulently obtaining $350,272 by providing false information on a PPP loan application. Gross split the proceeds with his co-conspirator who helped him complete the application. Gross’s sentencing hearing is Oct. 13, 2026. This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Chandra Menon.
On Aug. 25, 2026, Arthur Allen of New Orleans was sentenced to 24 months of imprisonment to be followed by three years of supervised release for defrauding the Small Business Administration (“SBA”). In 2020, Allen falsely claimed on a PPP loan application that his bed and breakfast received over $425,000 in gross revenue in 2019 when the business actually generated no revenue in 2019. As a result of his false statements, the SBA issued Allen a PPP loan of $712,212. In addition to the 2-year prison sentence he received, Allen was also ordered to pay $712,212 in restitution. The case was investigated by the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Richard R. Pickens, II.
On Aug. 27, 2026, after pleading guilty to PPP fraud, Wellington Brown was sentenced to 5 years of probation and 12 months of home detention. Brown admitted he lied on his PPP application and received $123,771 in SBA funds. Brown was also ordered to pay $123,771 in restitution. The case was investigated by the U.S. Department of Veterans Affairs Office of Inspector General (a member of the Pandemic Response Accountability Committee) and prosecuted by Assistant U.S. Attorney Richard R. Pickens, II.
On Aug. 12, 2026, Chelsey Powell was sentenced to 2 years of probation, after pleading guilty to making false statements to the SBA in order to obtain PPP loans totaling $36,123. Specifically, Powell made false statements on a PPP application and unlawfully received $36,123 in PPP benefits. In addition to probation, Powell was ordered to pay restitution to the SBA in the amount of $36,123.52 and to serve 100 hours of community service. The case was investigated by the U.S. Department of Veterans Affairs Office of Inspector General (a member of the Pandemic Response Accountability Committee) and the United States Secret Service and was prosecuted by Assistant U.S. Attorney Edward J. Rivera.
On Aug. 5, 2026, Myiesha Robertson was sentenced to 5 years of probation, with 6 months of home detention, for defrauding the SBA. Robertson provided false statements on her PPP loan application and received $64,198. Robertson also filed a false tax return for herself and others. Robertson was ordered to pay restitution of $64,198 to the SBA, restitution in the amount of $432,447.35 to the IRS and ordered to serve 150 hours of community service. The case was investigated by Internal Revenue Service – Criminal Investigation and prosecuted by Assistant U.S. Attorney Edward J. Rivera.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 16 field offices located across the U.S. and maintains an international presence through attaché posts abroad.