Jacob Schneider, a 42-year-old resident of Saint Paul, Minnesota, has been sentenced to one year and one day in prison. He was also ordered to pay $555,292.88 in restitution after pleading guilty to wire fraud related to COVID-19 financial relief programs. Schneider self-reported his fraudulent activities to authorities.
The case stems from the Paycheck Protection Program (PPP), part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law on March 27, 2020. The PPP aimed to assist small businesses affected by the COVID-19 pandemic by providing loans for payroll and other eligible expenses.
In February 2021, Schneider submitted a fraudulent PPP application for "Piddonkadonk, LLC," falsifying payroll information and misrepresenting the intended use of funds. He obtained $530,567 in PPP funds but used most of it for personal gain.
United States Attorney Matt Kirsch stated: "This case is another example of someone who stole benefits intended for struggling taxpayers and used them for personal gain." He noted that Schneider's voluntary admission was considered in his sentencing and encouraged others involved in similar frauds to come forward.
Special Agent in Charge Marc DellaSala of the U.S. Secret Service's Denver Field Office emphasized efforts to protect financial relief programs from exploitation: "We will take all means to safeguard financial relief programs from exploitation."
The investigation was conducted by the United States Secret Service with prosecution led by Assistant United States Attorney Nicole Cassidy. The sentencing was presided over by United States District Court Judge Nina Y. Wang.
On July 11, 2023, the Attorney General appointed the District of Colorado’s U.S. Attorney’s Office as one of five national COVID-19 Fraud Strike Force Teams leaders. These teams focus on large-scale pandemic relief frauds involving criminal organizations and transnational actors.
Individuals with information about attempted COVID-19-related fraud can report it through the Department of Justice’s National Center for Disaster Fraud Hotline or their online complaint form.