Memphis Man Sentenced for COVID-19 Relief Fraud

In a surprising twist of events in Memphis, a man named Dardanius Coleman was sentenced to 21 months in federal prison for his involvement in a scheme that defrauded a COVID-19 relief fund. The hefty sum? Over $2 million. Coleman, who is 55 years old, was found guilty of exploiting the Paycheck Protection Program (PPP), which was created to help small businesses that were struggling during the pandemic.

The Paycheck Protection Program was established by the federal government, operated through the Small Business Administration (SBA), and aimed to provide emergency financial relief to businesses that faced unprecedented challenges due to COVID-19. According to U.S. Attorney Kevin G. Ritz, “This federal program was designed to lift hardworking citizens and small businesses in a time of need. Instead, the defendant in this case cheated the program and misused relief funds.”

From April 2020 to November 2021, Coleman allegedly got creative and submitted fraudulent applications for five businesses that he controlled. These applications were riddled with false information. He provided fake documents about how many employees each business had and exaggerated the payroll amounts to get bigger loans. As a result, he managed to receive a staggering amount of money, which, rather than going into the businesses, went straight into Coleman’s pockets.

After receiving the funds, it’s reported that he didn’t use the money for its intended purpose. Instead, he effectively diverted the funds for his personal gain, leading to his eventual downfall. The moral of the story? Cheating the system rarely ends well.

In addition to serving a prison sentence, Coleman was hit with a financial consequence that will linger long after he’s free. The federal court has ordered him to pay back the amount of $2,093,318 in restitution to the SBA. The judge also mandated that Coleman will be under three years of supervised release once he completes his prison time.

U.S. District Judge Thomas L. Parker made it clear that fraud like Coleman’s undermines the purpose of essential programs like the PPP. “This sentencing underscores our unwavering commitment to protecting the integrity of SBA programs,” said Amaleka McCall-Braithwaite, the Special Agent in Charge of the SBA Office of Inspector General’s Eastern Region. She emphasized that fraudulent activities directly impact legitimate businesses that genuinely needed the assistance during the tough times caused by the pandemic.

It’s a bitter reminder that while many individuals and small businesses followed the rules and used the relief funds wisely, there were others who chose to take a shortcut. Unfortunately, for those in the community who truly needed help, Coleman’s actions meant that taxpayer dollars were misused when they could have made a real difference elsewhere.

As this case wraps up, it serves as a warning to anyone considering similar fraudulent plans – the repercussions can be severe. With legal systems tightening their grip and investigators analyzing every suspicious application, it’s becoming more challenging for fraudsters to escape accountability. Each case that surfaces not only helps reclaim misappropriated funds but also reinforces the importance of integrity especially in times of crisis.

This case might be an isolated incident, but it shines a spotlight on ongoing efforts to safeguard public funds. The accountability measures and legal actions following Coleman’s case illustrate that the government is not only serious about supporting small businesses, but they are equally determined to weed out the wrongdoers.

In conclusion, Dardanius Coleman’s fraudulent actions may have gained him short-term gains, but in the end, he faced substantial consequences – a prison sentence, hefty financial restitution, and a lasting mark on his record. Let this serve as a reminder that integrity and hard work prevail in the long run.