United States District Judge Thomas O. Rice has sentenced Tyler Keith Andrews, a 39-year-old from Russellville, Arkansas, to over 16 years in federal prison. The sentencing relates to a scheme involving fraudulent applications for COVID-19 relief funds amounting to more than $16 million. In addition to the prison term, Andrews faces three years of supervised release and must pay restitution of $16,330,814.30 to the Small Business Administration. He is also subject to forfeiture of $4,300,474.75.
The CARES Act was signed into law on March 27, 2020, providing programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program to help small businesses during the pandemic. These programs offered forgivable loans and low-interest loans respectively to support business operations amid economic disruptions.
Court documents reveal that between June 2020 and May 2022, Andrews facilitated numerous fraudulent EIDL loan applications on behalf of co-conspirators across various locations including Eastern Washington. He charged a fee typically set at 10% of the loan amount obtained through these fraudulent means. This resulted in his aiding others in securing at least $13,449,179 in EIDL funding.
Andrews also filed false PPP and EIDL applications for his own enterprises such as Andrews Associates Inc., Texas Oil and Gas Express Inc., Total Logistic Solutions among others. These actions led him to acquire approximately $3,253,541 for his businesses while TE Andrews Holdings LLC secured an additional $1,232,000 from SBA loan programs.
In July 2023, following an initial indictment and arrest related to passport fraud and identity theft aimed at fleeing the U.S., Andrews was apprehended again by authorities.
“Mr. Andrews developed a fraudulent scheme...to obtain millions in COVID-19 pandemic relief funds,” stated U.S. Attorney Waldref who commended her office’s COVID-19 Fraud Strike Force for their efforts against such fraudulent activities.
Gregory L. Austin from the FBI’s Seattle field office remarked on how Andrews exploited pandemic relief programs intended for struggling businesses: “While legitimate small business owners were struggling...he fraudulently obtained millions.”
Weston King from SBA OIG highlighted the importance of maintaining integrity within SBA programs: "Exploiting relief efforts for personal gain undermines public trust."
The case involved collaboration between several agencies under the Eastern District of Washington COVID-19 Fraud Strike Force including FBI and SBA with prosecution led by Assistant United States Attorney Dan Fruchter.