Memphis Businessman Sentenced to 30 Months for COVID-19 Relief Loan Fraud

Memphis Man Sentenced for COVID-19 Relief Loan Fraud

Memphis, Tenn. – In a shocking turn of events, a local businessman found himself in a heap of trouble after misusing his COVID-19 relief loan. Herman Shaw, age 44, who runs a small trucking company named Freight Masters Inc., is now facing the consequences of his actions after a judge sentenced him to 30 months in federal prison on November 6, 2024.

COVID Relief Gone Wrong

According to the Department of Justice (DOJ), Shaw originally applied for a COVID-19 relief loan to support his business during the pandemic. However, in a twist that many would call a “poor choice,” he allegedly fabricated details on his loan application, particularly regarding the number of employees he claimed to have. This led him to fraudulently secure a shocking $782,212 in loan proceeds.

Instead of using this significant amount to pay his purported employees, Shaw reportedly diverted a chunk of the funds to settle his gambling debts! Yes, you heard that right. In addition, he allegedly gave $262,000 of the loan money as a kickback to a partner in the scam. It seems he thought he could beat the system, but unfortunately for him, the law caught up.

Pleads Guilty and Faces the Music

Shaw didn’t put up much of a fight though—he pleaded guilty to one count of wire fraud back in August. Now, along with his two-and-a-half-year prison sentence, which is rather unforgiving given the no parole policy, he has been ordered to pay back the entire loan amount of $782,212 in restitution. It’s a tough lesson for the Memphis man, who may have thought he could outsmart the system.

Another Week, Another Story

In other news, Memphis has been bustling lately, with various happenings creating quite a stir in the community. Just last month, a man from Brownsville was recovering after being shot by a Haywood County Sheriff’s Deputy. It’s a stark reminder of the challenges local law enforcement faces daily.

Meanwhile, for those who keep an eye on school happenings, Memphis Police reported finding a gun inside a student’s car at Whitehaven High School. It’s incidents like these that spark conversations about safety and responsibility among students and families alike.

Hope on the Horizon

But it’s not all doom and gloom. There’s light shining through the cracks of our chaos! Memphis-Shelby County Schools (MSCS) has taken a stand by joining a class-action lawsuit against pharmaceutical companies over insulin prices. As we all know, insulin can be a lifeline for those living with diabetes, and rising prices are becoming a critical issue that needs addressing.

As we look out for more updates this season, it’s essential to keep an eye on our own community. Whether it’s local businesses weathering the storm, families ensuring student safety, or schools taking on major health issues—Memphis is a place of resilience. Stay tuned as we follow these stories and more, and remember, keeping our community informed is key to making it stronger!

And for those wondering about the weather, expect a mild high of 67F with light winds today, but keep warm tonight as temperatures dip to a low of 51F. Fog may roll in overnight, so be cautious if you’re heading out early!