The United States has secured consent or default judgments in five civil fraud lawsuits involving fraudulent Paycheck Protection Program (PPP) loans. Acting United States Attorney Alexander C. Van Hook announced that the individuals involved obtained loans for fictitious companies or self-employment, violating the False Claims Act. The defendants named are Antoinette Kennedy, Andre Lane, Dieudonne Nlend, Tracey Thompson, and Rashinda Harris. These cases resulted in judgments totaling $138,413.72 in favor of the United States.
The PPP was an emergency loan program established under the Coronavirus Aid, Relief and Economic Security (CARES) Act to support small businesses during the COVID-19 pandemic. Borrowers were required to certify their eligibility and provide accurate information on their loan applications.
The investigation into Kennedy began in May 2024 when agents discovered she had no legitimate business despite her claims on a PPP loan application. She learned about a fraudulent scheme on Instagram and submitted false paperwork to obtain funds. A default judgment of $48,813.72 was issued against her.
Thompson and Harris exaggerated their business income with assistance from another individual to secure loans they were not entitled to receive. Lane also inflated his self-employment income in his application. Settlements were reached with these three defendants, resulting in consent judgments of $23,516 for Thompson, $23,415 for Harris, and $23,435 for Lane.
Nlend admitted to falsifying self-employment income amounts during an interview with investigators. He used the loan proceeds to help a family member with medical expenses abroad. A consent judgment of $19,234 was obtained against him.
Acting U.S. Attorney Van Hook stated: "The United States Attorney’s Office will use every tool at our disposal - to include civil litigation - to root out fraud, waste, and abuse of taxpayer money." He emphasized collaboration with law enforcement partners in holding wrongdoers accountable.
These resolutions resulted from efforts by the Civil Division of the U.S. Attorney’s Office, Small Business Administration’s Office of Inspector General, and for some defendants, the Department of Army Criminal Investigation Division. Assistant U.S. Attorney Melissa L. Theriot handled these cases.