U.S. Attorney Duane A. Evans announced that Clifton C. James, a 50-year-old resident of New Orleans, pled guilty on January 15, 2025, to charges including making false statements, theft of government funds, and money laundering related to the CARES Act. He also admitted to filing a false tax return with the IRS.
The CARES Act was enacted on March 27, 2020, to provide emergency assistance through programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), administered by the U.S. Small Business Administration.
According to court documents, James falsely applied for an $86,800 PPP loan on April 30, 2020. Later, on July 13, he fraudulently obtained $149,900 from the SBA using a false application in the name of Crescent City Tax Services LLC. The funds were then laundered by purchasing a vehicle from a California dealership. Additionally, James filed a tax document falsely claiming an income of $1 for 2019.
James is scheduled for sentencing on April 23 and faces up to five years in prison for each charge of making false statements and filing a false tax document. The charges of money laundering and theft of government funds could result in up to ten years per count. Each charge also carries fines up to $250,000 and other penalties.
The case was investigated by agents from the Pandemic Response Accountability Committee Fraud Task Force. This task force comprises agents from various Inspectors General who work together to combat pandemic-related fraud across federal programs.
Evans commended the investigative efforts of the U.S. Department of Veterans Affairs Office of Inspector General and IRS Criminal Investigation. Assistant U.S. Attorney Edward J. Rivera is handling the prosecution.
For more information about COVID-19 fraud or to report allegations, visit www.justice.gov/coronavirus or contact the National Center for Disaster Fraud Hotline at 866-720-5721.