NC man pleads guilty to COVID-19 loan fraud

GREENVILLE, NC (WNCN) — A Cary man has pleaded guilty to a multi-million dollar fraud scheme, U.S. Attorney Michael Easley said in a statement.

Quentin Allen Jackson, 56, pleaded guilty on Wednesday to “conspiracy to commit money laundering with respect to the fraudulent proceeds of the Paycheck Protection Act.”

Jackson worked with others to obtain fraudulent Paycheck Protection Program (PPP) loans from several companies that are “under Jackson’s control,” according to Easley.

After Jackson received the PPP loans, he worked with co-conspirators to make it look like he was “paying payroll every two weeks” to employees, but these people weren’t working for the companies or “they don’t were not actually earning salaries comparable to what was represented in the loan applications.

Jackson then told those receiving the checks “to cash the checks and then return the illicit money to him.”

Jackson also served as an intermediary for his co-conspirators, Easley said. He earned a commission for “each additional fraudulent borrower he recruited”.

And he recruited more than 12 people who got fraudulent PPP loans.

“The defendant took money intended to help struggling small businesses during the pandemic,” Easley said. “We will vigorously pursue criminals who lined their pockets with taxpayers’ money as the pandemic crippled local businesses.”

Jackson and his co-conspirators took nearly $4 million in fraudulent PPP loans, Easley said.

Jackson is expected to be sentenced next year.

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