News Summary
Matthew Lloyd Parker, a 37-year-old CPA from Detroit, was sentenced to two years in federal prison for defrauding the U.S. government of $14.5 million through fraudulent COVID-19 relief loans. Parker also must pay full restitution and will be on supervised probation post-release. His case represents a significant instance of fraud against the Paycheck Protection Program in his district. Co-defendants, including a credit repair specialist, have also received sentences for similar offenses. This ongoing issue highlights vulnerabilities in pandemic-related financial assistance programs.
Pittsburgh, Pennsylvania – Matthew Lloyd Parker, a 37-year-old certified public accountant from Detroit, has been sentenced to two years in federal prison as part of a scheme that defrauded the U.S. government of $14.5 million through fraudulent COVID-19 relief loans. This sentencing, which took place in a federal court in Pittsburgh, underscores the serious consequences of committing fraud during a national crisis.
In addition to his prison term, Parker was ordered to pay the full amount of $14.5 million in restitution to the U.S. Small Business Administration (SBA). Following his release from prison, Parker will be under supervised probation for four years, reflecting the severity of his actions.
Federal prosecutors identified Parker’s scheme as the largest known instance of COVID-19 Paycheck Protection Program (PPP) fraud in his district as of March 2024. Parker pleaded guilty to a charge of fraud conspiracy on May 15, 2024, a serious offense that typically carries a maximum penalty of 30 years in prison and fines of up to $1 million.
Fraud Scheme Details
Between 2020 and 2021, Parker, alongside several co-defendants, was accused of defrauding the SBA and various lenders by submitting falsified PPP loan applications. The fraudulent activity resulted in 226 applications being approved, enabling Parker and his associates to siphon off millions intended for legitimate small businesses affected by the pandemic.
Parker played a central role in the scheme, reportedly recruiting numerous small businesses in Pittsburgh and Detroit to participate in submitting these fraudulent loan applications. His actions, which involved deception against financial institutions, led to his indictment and that of his co-defendants in June 2023 on charges of fraud conspiracy and bank fraud. Collectively, these charges could result in up to 50 years in prison.
Co-defendants and Broader Implications
Virginia Humphries, one of Parker’s co-defendants and a credit repair specialist, also engaged in the recruitment of businesses for the fraudulent operations. She pleaded guilty in March 2024 and received a one-year sentence, along with an order to pay $1.3 million in restitution. Another co-defendant, Marc Andrew Martin, has also pleaded guilty to fraud conspiracy and is scheduled for sentencing on July 10, 2024.
Parker’s fraudulent activities are part of a larger pattern of COVID-19 relief fraud observed in Michigan. Other individuals, including a physician from Southfield and owners of a private social club in Detroit, have faced similar charges for their involvement in PPP loan fraud. This trend highlights broader vulnerabilities in the PPP and calls into question safeguards put in place during the expedited lending process during the pandemic.
Previous Sentences for Fraudulent Activities
In related cases, Danielle Moore, a claims examiner for the Michigan Unemployment Insurance Agency, was sentenced to 41 months in prison for her role in committing wire fraud. She was ordered to pay over $1.5 million in restitution for fraudulent unemployment claims. These cases serve as a reminder of the ongoing efforts by federal authorities to combat fraud related to pandemic relief funds.
Conclusion
The sentencing of Matthew Lloyd Parker represents a significant outcome in the fight against COVID-19 relief fraud. His case, along with those of his co-defendants, highlights the serious legal consequences of exploiting government assistance programs designed to support legitimate businesses during a global crisis. Federal authorities remain vigilant in pursuing individuals who attempt to defraud such programs, ensuring that penalties are imposed to deter similar misconduct in the future.
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Additional Resources
- Detroit News: Former State Employee Sentenced
- Wikipedia: Pandemic Fraud
- Click On Detroit: 41 Months Behind Bars for Detroit Woman
- Google Search: COVID relief fraud cases
- Detroit News: Detroit CPA Sentenced for Loan Fraud
- Google Scholar: COVID-19 PPP Loan Fraud
- CBS News: Man Accused of Fraud
- Encyclopedia Britannica: Unemployment Insurance Fraud
- Detroit Free Press: Detroit Club Owners Settlement
- Google News: Detroit COVID Fraud
Author: STAFF HERE DETROITMI WRITER
DETROIT STAFF WRITER The DETROIT STAFF WRITER represents the experienced team at HEREDetroitMI.com, your go-to source for actionable local news and information in Detroit, Wayne 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 Movement Electronic Music Festival, Detroit Grand Prix, and America's Thanksgiving Parade. Our coverage extends to key organizations like the Detroit Regional Chamber and Focus HOPE, plus leading businesses in automotive and healthcare that power the local economy such as General Motors, Ford Motor Company, and Henry Ford Health. As part of the broader HERE network, including HEREGrandRapids.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
