Three more people convicted of stealing PPP funds during Georgia's COVID-19 pandemic

ATLANTA – Three individuals, Teldrin Foster, John Gaines, and Carla Jackson, were recently sentenced for their roles in a scheme to steal Paycheck Protection Program (PPP) funds during the COVID-19 pandemic, according to U.S. Attorney Ryan Buchanan, Northern District of Georgia. A total of 23 individuals have been sentenced in connection with the fraudulent scheme.

U.S. Attorney Ryan K. Buchanan said, “Foster, Gaines, and Jackson, along with 20 other defendants, exploited a relief program designed to help small businesses during the pandemic. Their convictions demonstrate that fraud against the government will not be tolerated.”

Keri Farley, Special Agent in Charge of the FBI in Atlanta, stressed: “COVID-19 relief loans were intended to support struggling businesses, not for personal gain. The FBI will hold accountable those who misuse taxpayer dollars.”

From April to August 2020, Foster collaborated with co-defendant Darrell Thomas and others to obtain 14 fraudulent PPP loans totaling more than $11 million. These loans falsely claimed that the businesses had employees and payroll expenses. Gaines obtained a fraudulent $806,710 loan for a fictitious business, and Jackson laundered more than $300,000 of the stolen funds.

The sentences are as follows:

• Teldrin Foster, 42, of Atlanta: Sentenced to 10 years and one month in prison, followed by three years of supervised release, and ordered to pay $9,606,627 in restitution. Convicted of multiple counts, including conspiracy to commit bank fraud and wire fraud.
• John Gaines, 59, of Marietta:Sentenced to five years and three months in prison, followed by three years of supervised release, and ordered to pay $806,710 in restitution. Pleaded guilty to one count of money laundering.
• Carla Jackson, 56, of Tucker: Sentenced to three years in prison, followed by two years of supervised release, and ordered to pay $335,238 in restitution. Found guilty of two counts of money laundering.

This case was investigated by the FBI and the IRS Criminal Investigation Division. The prosecution was led by Assistant U.S. Attorneys Tal Chaiken, Samir Kaushal, Nathan Kitchens and Norman Barnett of the Northern District of Georgia, and Prosecutor Siji Moore of the Criminal Division's Fraud Section.

For more information about the Department of Justice's efforts to combat COVID-19 fraud, visit the Department of Justice's response page.

Anyone with information about COVID-19 fraud can report it to the Department of Justice's National Center for Disaster Fraud (NCDF) hotline at 866-720-5721 or via the complaint form NCDF online.

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