PPP Loan Scheme Unveiled: Georgia Attorney Convicted in $7 Million Scandal
In a significant development highlighting the persistent efforts to combat pandemic-related financial fraud, a federal jury in the Northern District of Georgia has found Shelitha Robertson, a 62-year-old former City of Atlanta police officer turned attorney, guilty of fraudulently obtaining over $7 million in loans from the Paycheck Protection Program (PPP). This conviction underscores the ongoing commitment to prosecute individuals taking advantage of relief programs during the COVID-19 pandemic.
The trial presented compelling evidence, supported by court documents, revealing Robertson’s deceptive actions in applying for PPP loans for four businesses she owned. The applications were deceitfully inflated, misrepresenting the number of employees and average monthly payroll to secure larger loan amounts than she was eligible for. To substantiate these fraudulent claims, Robertson collaborated with a co-conspirator to submit falsified tax documents.
Following the illicit acquisition of funds, Robertson indulged in the misappropriation of money, using it to purchase luxury items such as a 10-carat diamond ring. Additionally, she distributed funds to family members and her co-conspirator, compounding the financial wrongdoing.
The federal jury convicted Robertson on multiple charges, including one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of money laundering. Scheduled for sentencing on April 11, 2024, Robertson faces a maximum of 20 years in prison for each wire fraud and conspiracy count, and up to 10 years for the money laundering charge. The final sentence will be determined by a federal district court judge, considering relevant factors and U.S. Sentencing Guidelines.
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This case is part of a broader investigation into a $15 million PPP fraud conspiracy, with Robertson becoming the second defendant to be convicted; her co-conspirator had already pleaded guilty.
Acting Assistant Attorney General Nicole M. Argentieri, U.S. Attorney Ryan K. Buchanan, and Inspector Generals from the U.S. Small Business Administration, Federal Deposit Insurance Corporation, and the U.S. Treasury announced the case.
The investigation was conducted by the SBA-OIG, FDIC-OIG, and TIGTA, with prosecution led by Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Bernita Malloy for the Northern District of Georgia.
The Criminal Division’s Fraud Section has been at the forefront of combating PPP-related fraud schemes since the inception of the CARES Act. With over 200 defendants prosecuted in more than 130 criminal cases, they have successfully recovered over $78 million in fraudulently obtained funds, accompanied by substantial real estate and luxury item seizures.
The COVID-19 Fraud Enforcement Task Force, established in May 2021, continues to spearhead efforts against pandemic-related fraud. Under the guidance of the Attorney General, the task force enhances investigative and prosecutorial measures across various government agencies. Detailed information on these efforts can be accessed through the Justice Department’s dedicated websites for PPP fraud and the coronavirus response.
The Department of Justice encourages individuals with information about COVID-19 related fraud to report it through the National Center for Disaster Fraud Hotline or the NCDF Web Complaint Form. This conviction sends a strong message that fraudulent activities exploiting relief programs will be met with rigorous legal action, emphasizing the importance of maintaining the integrity of pandemic-related financial assistance initiatives.
