Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, has announced that Jacob Carter was sentenced to 11 years in prison. Carter led a scheme defrauding the U.S. Small Business Administration (SBA) of over $7.6 million. He and his co-defendants, Quadri Salahuddin and Anwar Salahuddin, were convicted on February 9, 2024, for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.
Acting U.S. Attorney Matthew Podolsky stated: “Jacob Carter took advantage of a taxpayer-funded program intended to help small businesses in desperate need during the COVID-19 pandemic. Some small businesses that were eligible for and deserving of this money did not get it because funds ran out. Carter used his ill-gotten gains for far more selfish pursuits, including expensive jewelry and a Lamborghini. Thanks to the work of our law enforcement partners at the FBI and the career prosecutors of this Office, Carter has now received just punishment.”
The SBA is a federal agency providing assistance to American small businesses through programs like the Economic Injury Disaster Loan (EIDL) Program. In response to COVID-19, Congress expanded this program offering low-interest loans up to $2 million before May 2020 and up to $150,000 from May 2020 onwards.
Between March and July 2020, Carter along with Quadri Salahuddin, Anwar Salahuddin, and Crystal Ransom used identities of over 1,000 individuals to submit fraudulent applications seeking over $10 million through the EIDL Program. They falsely claimed these individuals owned businesses with ten or more employees when they did not. The SBA disbursed more than $7.6 million based on these false applications; a portion was kicked back to Carter and his associates.
In addition to his prison sentence, Carter was ordered three years of supervised release and must pay restitution of $7,737,000 as well as forfeiture amounting to $1,720,950.
Crystal Ransom pleaded guilty earlier and received two years in prison followed by three years supervised release with six months home confinement. She was ordered restitution of $7,577,000 and forfeiture of $99,000. Quadri Salahuddin and Anwar Salahuddin are scheduled for sentencing on March 26, 2025.
Mr. Podolsky commended the Federal Bureau of Investigation and Air Force Office of Special Investigations for their work on this case.
The prosecution is being handled by Assistant U.S. Attorneys Jeffrey C. Coffman, Courtney L. Heavey, and Jared D. Hoffman from the White Plains Division.