Participant in $542,000 family COVID fraud ring sentenced to prison

Date: April 10, 2026

Contact: newsroom@ci.irs.gov

New Bern, NC – A federal judge sentenced Erica McMillian, a Robeson County woman, to 10 months in prison, followed by 3 years of supervised release for her role in submitting a false application to the Small Business Administration’s to receive an Economic Injury Disaster Loan.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars.  Department of Justice efforts to combat fraud support 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.

“We are proud to prosecute this case as a part of the President’s Task Force to Eliminate Fraud. This office will continue to hold accountable anyone who defrauds any of our taxpayer funded programs. This Covid fraudster has learned the lesson – Cheaters.Never.Win.” said U.S. Attorney Ellis Boyle.

Inmate McMillian submitted a fraudulent EIDL loan application for a fictitious business located in Robeson County. To obtain the $150,000 loan, McMillian made false representations concerning the number of employees and gross revenues of the business. She also submitted false and fraudulent tax forms and bank statements. Following approval of the loan application, funds were disbursed into a personal account controlled by Inmate McMillian.

McMillian’s case is part of a broader investigation into a scheme to defraud the Small Business Administration’s EIDL and Paycheck Protection Programs.  That scheme resulted in the disbursement of $542,288 in fraudulent covid loan proceeds. Former Robeson County Sheriff’s Office deputy Ricky McMillian, his wife Erica McMillian, and their two sons, Dwayne McMillian, and Derian McMillian, have all been convicted in the scheme.

W. Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. District Judge Louise W. Flanagan sentenced McMillian to prison.  IRS-CI and the FBI investigated the case, and Assistant U.S. Attorney Ethan Ontjes prosecuted the case.

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 18 field offices located across the U.S. and maintains an international presence through attaché posts abroad.