Former Seattle man sentenced to three years in prison for fraudulently obtaining COVID benefits

On Wednesday, May 29, a former Seattle man was sentenced to 42 months in prison for three counts of bank fraud in connection with the COVID-19 Paycheck Protection Program (PPP), a said Tessa M. Gorman, United States Attorney.

Donte McClellon, 30, was a resident of Seattle at the time of the crime.

In May and June 2020, McClellon falsified documents and received $500,948 that he spent on himself and his investments.

“The negative effects of McClellon’s crime go beyond financial loss. His fraudulent applications clogged an overburdened application system and stole valuable resources from lending institutions that work around the clock to distribute money,” said U.S. Attorney Gorman. “McClellon even tried to cut the line in front of small businesses. His fraud was not a one-off error in judgment, but rather a calculated attempt to take advantage of relief systems put in place for businesses struggling due to the COVID-19 pandemic.”

According to court documents, McClellon used three inactive limited liability companies (LLCs) he had previously registered in Washington state when he applied for the PPP loans.

When he received the money, he spent it on Manhattan apartment rent, Uber rides, gym membership fees, and personal travel.

U.S. District Judge Lauren King emphasized that the societal costs of these crimes are severe, saying these crimes have affected taxpayers and diverted funds from struggling small businesses.