News Summary
Matthew Lloyd Parker, a CPA from Detroit, has been sentenced to two years in prison for participating in a $14.5 million COVID-19 relief loan fraud scheme. The federal court mandated restitution to the U.S. Small Business Administration and four years of supervised release after his prison term. Parker submitted falsified loan applications to secure loans under the Paycheck Protection Program, making this case one of the largest fraud incidents in Pennsylvania’s district. Other accomplices have also pleaded guilty and face severe penalties.
Detroit – Matthew Lloyd Parker, a certified public accountant from Detroit, has been sentenced to two years in prison for his role in a $14.5 million COVID-19 relief loan fraud scheme. A federal court judge in Pittsburgh also mandated that Parker pay restitution in the amount of $14.5 million to the U.S. Small Business Administration (SBA). After completing his prison term, Parker will face four years of supervised release.
Parker’s fraudulent activities were uncovered during an investigation that revealed the scheme to be the largest Paycheck Protection Program (PPP) fraud case in the Western District of Pennsylvania. The illegal acts took place between 2020 and 2021 when Parker and his accomplices deceived lenders into disbursing $14.5 million in PPP loans by submitting falsified loan applications on behalf of hundreds of small businesses in Pittsburgh and Detroit.
Of the fraudulent applications that Parker submitted, the SBA approved 226. Parker pleaded guilty to fraud conspiracy on May 15, 2024, a charge that can carry a severe penalty of up to 30 years in prison. A federal indictment against Parker, along with two co-defendants—Virginia Humphries and Marc Andrew Martin—was issued in June 2023. This indictment charged all three individuals with fraud conspiracy and bank fraud, which together can lead to up to 50 years of imprisonment.
Virginia Humphries, who played a significant role in recruiting businesses to participate in the scheme, also entered a guilty plea in March 2024. She received a sentence of one year in prison and was ordered to pay $1.3 million in restitution by the court in May. Another co-defendant, Marc Andrew Martin, has also pleaded guilty to the same conspiracy charge and is scheduled for sentencing on July 10, 2025.
The investigation into Parker’s fraudulent actions involved various federal agencies, including the IRS and the Department of Labor’s Office of Inspector General. Their collaboration aimed at uncovering fraudulent activities related to COVID-19 relief efforts has led to numerous cases of deceit across Michigan.
In addition to Parker’s case, other recent instances of PPP loan fraud include cases involving a Southfield doctor, the owners of a Detroit social club, and an Ann Arbor woman. These incidents showcase a troubling trend of COVID-19 relief fraud, particularly among residents in Michigan.
The broader context surrounding the PPP program highlights its original purpose: to provide financial assistance to small businesses affected by the economic fallout from the COVID-19 pandemic. However, the influx of fraud cases underlines vulnerabilities within the system meant to support struggling enterprises. Law enforcement agencies continue to investigate and prosecute those seeking to exploit these relief funds for personal gain.
The outcome of Matthew Parker’s case serves as a reminder of the potential consequences of fraudulent behavior and its impact on the economy. The legal actions taken following the detection of these fraudulent schemes aim to recover lost funds and reinforce integrity within federal assistance programs.
Deeper Dive: News & Info About This Topic
HERE Resources
Detroit Accountant Sentenced for COVID-19 Relief Fraud
Metro Detroit Businessman Charged with Wire Fraud and Money Laundering
Detroit Man Admits to Ripping Off $14 Million in COVID-19 Relief Funds
Additional Resources
- Detroit News: CPA sentenced for loan fraud
- Click on Detroit: Detroit man sentenced for PPP loan fraud
- Detroit News: Former state employee sentenced for fraud
- Freep: Detroit club owners settle PPP allegations
- Wikipedia: Paycheck Protection Program
- Google Search: PPP loan fraud
- Encyclopedia Britannica: COVID-19
