Zipora Hudson of Olive Branch, Mississippi, has been sentenced to five years in prison by U.S. District Court Judge Michael P. Mills. This follows her conviction in January for conspiracy to commit wire fraud and money laundering. After serving the 60-month sentence, she will undergo five years of supervised release. Hudson was also ordered to pay $3,526,517 in restitution.
Hudson and her associates, including her son Montreal Hudson and Deandre Jones, were involved in a scheme using Zippy Bee, LLC. The business, falsely represented as a tax preparation service, submitted hundreds of fraudulent Paycheck Protection Program (PPP) loan applications for businesses not eligible for the loans. The loans ranged from $19,000 to $20,833, and were based on exaggerated or entirely fabricated income figures. The scheme generated kickbacks for the defendants, who used the money for luxury purchases.
U.S. Attorney Clay Joyner commented on the case, stating, “By exploiting a government program designed to aid businesses during a national crisis, Zipora Hudson stole millions of dollars from American taxpayers.” Assistant Special Agent Lisa Fontanette added, “Zipora Hudson committed PPP loan fraud and is now paying the price for her crime.”
Montreal Hudson, convicted at the same trial, will be sentenced on June 26, 2025. Deandre Jones pled guilty earlier in the case.
The scheme was identified during a civil investigation. It was prosecuted by Assistant U.S. Attorneys Scott Leary and Sam Wright and investigated by the IRS Criminal Investigation Division alongside the U.S. Attorney's Office.
The Attorney General's COVID-19 Fraud Enforcement Task Force was established in May 2021 to address pandemic-related fraud. The task force works to improve fraud prevention, investigation, and prosecution efforts.
Reports of COVID-19-related fraud can be made to the Department of Justice's National Center for Disaster Fraud Hotline or via its web complaint form.