An abstract image representing the theme of fraud in COVID-19 relief programs.
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.
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.
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.
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.
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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