Three Georgians have been sentenced to prison for their participation in a multimillion-dollar COVID-19 Paycheck Protection Program fraud.
Teldrin Foster, 42, of Atlanta, John Gaines, 59, of Marietta, and Carla Jackson, 56, of Tucker, are just three of the 23 people who was convicted and sentenced in connection with the scheme.
According to U.S. Attorney Ryan K. Buchanan, from April 2020 to August 2020, Foster worked with co-defendant Darrell Thomas and others to obtain at least 14 fraudulent loans.
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Each of the 14 companies obtained a PPP loan of between $700,000 and $850,000, totaling more than $11 million.
PPP loan applications reported that each company had between 59 and 69 employees and generated about $295,000 to $342,000 in average monthly payroll expenses.
However, the reality is that neither company had employees or payroll expenses.
Foster was sentenced to 10 years and one month in prison, followed by three years of supervised release.
He was also ordered to pay $9,606,627 in restitution.
Gaines was sentenced to five years and three months in prison, followed by three years of supervised release.
He was ordered to pay $806,710 in restitution.
Jackson was sentenced to three years in prison, followed by two years of supervised release.
She was ordered to pay $335,238 in restitution.
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“Foster, Gaines and Jackson, along with 20 other defendants who have already been convicted for their participation in this criminal scheme, took advantage of an aid program designed to keep small businesses afloat during the COVID-19 pandemic,” Buchanan said. . “These defendants have been held responsible for depriving this program of desperately needed funds for some of our society’s most vulnerable. And their sentences send a clear message that fraud against the government will not be tolerated.”
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