Maryland Resident Pleads Guilty to Conspiracy to Commit Wire Fraud After Preparing and Submitting Fraudulent Applications for Cares Act Financial Assistance

NEW ORLEANS – U.S. Attorney Duane A. Evans announced that SIEDAH ELEY, age 30, a resident of Houston, Texas, and formerly a resident of Columbia, Maryland, pled guilty  before United States District Judge Ivan L.R. Lemelle to a one-count bill of information charging her with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 371 and 1343, announced U.S. Attorney Duane A. Evans.  The charge stems from ELEY’S role in preparing and filing false applications for loans related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). 

According to court documents, ELEY used both  word-of-mouth and text message contacts to fraudulently solicit individuals interested in obtaining money from the Paycheck Protection Program (PPP) program with her assistance.  When someone expressed interest, ELEY requested  the following information from the applicant: the applicant’s name, address, social security, and phone number, a copy of the front and back of the applicant’s driver’s license, a bank statement from 2020, and the routing and account number for the applicant’s bank account.  ELEY then created a false and fraudulent loan application.  Among the false representations ELEY included in the pertinent forms was that the applicant had a sole proprietorship in the beauty industry and generated substantial income from those businesses.  ELEY also submitted financial numbers that overstated the gross receipts, expenses, and net income for the business, which resulted in the creation of a false federal tax Form 1040, Schedule C by the online portal that accepted and processed the application.  In several instances, where the applicant received minimal income from the beauty business, ELEY knowingly and falsely inflated the amount of income.  Each of the above-described false representations constituted a misstatement that was material to the determination of the eligibility of the applicant and the loan amount the applicant would receive. 

Once the loan was paid to the applicant, ELEY charged some applicants up to $5,000.00 for preparing and submitting the fraudulent PPP application.  ELEY used this scheme to file her own fraudulent application and applications for at least seven (7) co-conspirators, which resulted in a total loss to the Small Business Association of approximately $166,656.