DETROIT – Jawan Simpson, 37, a tax preparer and Certified Public Accountant (CPA), pleaded guilty today to orchestrating a scheme to defraud the Small Business Administration’s Paycheck Protection Program (PPP), announced United States Attorney Jerome F. Gorgon, Jr. During the COVID-19 pandemic, the federal government established the PPP to help small businesses keep their workers employed and cover essential operating costs. Simpson pleaded guilty to one count of wire fraud, which carries a maximum penalty of 20 years in prison.Gorgon was joined in the announcement by Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation, Detroit Field Office and Basil Demczak, Special Agent in Charge of Amtrak Office of Inspector General’s Central and Western Field Offices.“Jawan Simpson abused the trust placed in him as a tax preparer to defraud the American people of more than $2 million,” said U.S. Attorney Jerome F. Gorgon Jr.“Exploiting a federal relief program during a national crisis for personal financial gain is a serious betrayal of the public trust. Today’s guilty plea represents an important step toward accountability,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “I am grateful for the outstanding work of our FBI Oakland County Resident Agency and the Amtrak Office of Inspector General’s Central and Western Field Offices. Their diligence and collaboration helped uncover this scheme and protect the integrity of programs funded by American taxpayers.”“We hope this guilty plea sends a clear message that those who exploit emergency relief programs for personal gain will be held accountable,” said Basil Demczak, Special Agent in Charge of Amtrak Office of Inspector General’s Central and Western Field Offices. “We appreciate the strong partnership among the investigative agencies and prosecutors involved and remain committed to pursuing those who defraud taxpayer-funded relief programs.”According to the plea agreement, Simpson promised family members, friends, and tax preparation clients (including Amtrak employees) that, in exchange for a fee of $2,000-$3,000, he could help them qualify for pandemic relief loans that would be forgiven by the federal government. Simpson ultimately filed 111 PPP loan applications that contained materially false information. In support of those fraudulent applications, Simpson created bogus documents, including fake tax returns. The government asserts in the plea agreement that Simpson’s fraud resulted in the loss of $2.3 million in government funds.The case is being prosecuted by Assistant U.S. Attorney Davin M. Reust. The case is being investigated by the Amtrak Office of Inspector General and FBI.
Source: U.S. Department of Justice