Manvel resident charged for creating fake businesses to obtain COVID-19 funds

HOUSTON – A 38-year-old man has been indicted for wire fraud and money laundering, announced U.S. Attorney Alamdar S. Hamdani.

Authorities arrested Antonio Jackson Jr. this morning. He is expected to make his initial appearance before U.S. Magistrate Judge Yvonne Y. Ho at 2 p.m.

The indictment, returned Dec. 12, alleges Jackson fraudulently obtained approximately $492,611 in funds through the Small Business Administration’s (SBA) Payroll Protection Program and Economic Injury Disaster Loan Program.

According to the indictment, Jackson submitted false information and documents to the SBA to fraudulently obtain COVID-19 related loans. In his loan applications, Jackson allegedly claimed to be the owner and operator of multiple businesses with dozens of employees and millions in revenue and payroll expenses.

The charges allege the businesses were fictional. Jackson is alleged to have submitted fabricated payroll records, profit and loss statements as well as tax records to induce the SBA to approve the loans. 

Jackson allegedly used the fraudulently obtained funds to purchase luxury retail goods, exotic trips and luxury vehicles.

Jackson is charged with four counts of wire fraud and four counts of money laundering. If convicted, he faces up to 20 years in prison and a possible $250,000 maximum fine.

The SBA - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.