Quentin Allen Jackson, a former Harlem Globetrotter, has been sentenced to seven years in prison and ordered to pay $3 million in restitution. Jackson, 58, pleaded guilty to conspiracy to commit money laundering related to fraudulent Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration.
U.S. Attorney Michael F. Easley, Jr. commented on the case: "We in the Carolinas idolize our basketball stars, especially the ACC greats who played on Tobacco Road. As a college point guard and Harlem Globetrotter, Jackson’s crossover was deadly. But he drew a foul when he used his talents and reputation to recruit people into a multi-million-dollar fraud on our nation’s pandemic relief program."
Special Agent Donald “Trey” Eakins of the IRS Criminal Investigation in Charlotte added: "Schemes to fraudulently obtain federal funds meant to provide assistance to small businesses is unacceptable."
Jackson's sentencing follows the recent guilty plea of Earl Lamont Taylor, who collaborated with Jackson and Edward Whitaker in obtaining fraudulent PPP loans. Jackson is one of 27 defendants sentenced in this investigation, with five others awaiting sentencing.
The fraudulent activities involved obtaining PPP loans under various company names controlled by Jackson. The funds were then laundered through fake payroll transactions designed to appear legitimate under the CARES Act guidelines.
In addition to orchestrating his own fraud scheme, Jackson recruited over a dozen individuals for similar activities, earning fees for each participant he brought into the scheme. Nearly $4 million in fraudulent disbursements are linked directly or indirectly to Jackson.
The CARES Act was enacted in March 2020 as an emergency response measure providing financial aid during the COVID-19 pandemic. It authorized up to $649 billion in forgivable loans through PPP for small businesses.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina announced the sentence after United States District Judge James C. Dever III delivered it. The Internal Revenue Service Criminal Investigation is handling the case investigation with Assistant U.S. Attorneys David G. Beraka and William M. Gilmore prosecuting.