Maryland Resident Sentenced to 5 Years Probation, Ordered to Pay Over $165,000 for Preparing and Submitting Fraudulent Applications for Cares Act Financial Assistance

NEW ORLEANS – U.S. Attorney Duane A. Evans announced that SIEDAH ELEY, age 31, a resident of Columbia, Maryland, was sentenced on October 25, 2023 to five (5) years of probation by United States District Judge Ivan L.R. Lemelle after previously pleading guilty 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.  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).  ELEY was also ordered to pay $166,656 in restitution and a mandatory $100 special assessment fee .

According to court documents, ELEY used both word-of-mouth and text messages to solicit individuals interested in fraudulently obtaining money from the Paycheck Protection Program (PPP) program with her assistance.  When a prospective applicant expressed interest, ELEY requested 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.  ELEY falsely represented in the pertinent forms that the applicant had a sole proprietorship in the beauty industry that generated substantial income.  ELEY also submitted false financial numbers overstating the gross receipts, expenses, and net income for the business. This resulted in the creation of a false federal tax Form 1040, Schedule C, that was accepted and processed by the online portal handling the application.  In instances where the applicant actually received a small income from beauty industry work, ELEY knowingly and falsely inflated that  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 same scheme to file her own fraudulent application as well as the applications for at least seven (7) co-conspirators.  This resulted in a loss to the Small Business Association of approximately $166,656.