Dardanius Coleman, a 55-year-old resident of Memphis, Tennessee, has been sentenced to 21 months in federal prison for defrauding the Paycheck Protection Program (PPP). The PPP, managed by the Small Business Administration (SBA), was intended to offer financial aid to small businesses impacted by the COVID-19 pandemic. The announcement was made by Kevin G. Ritz, United States Attorney for the Western District of Tennessee.
United States Attorney Ritz emphasized that the PPP was created to assist hardworking citizens and small businesses during a critical time. He condemned the misuse of these funds by Coleman and praised federal law enforcement for their role in bringing Coleman to justice. Ritz assured that his office will continue to prosecute those who defraud COVID-19 relief programs.
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Court documents revealed that between April 2020 and November 2021, Coleman submitted fraudulent PPP applications for five businesses that he claimed to control. These applications included false information and fake documents about employee numbers and payroll amounts. Instead of using the loan proceeds for their intended purposes, such as rent or payroll, Coleman used the funds for his personal benefit.
The case was investigated by the Federal Bureau of Investigation (FBI) and the SBA Office of Inspector General. Special Agent in Charge Joseph E. Carrico of FBI Tennessee stated that the sentencing demonstrates the FBI’s dedication to holding individuals accountable for exploiting programs meant to assist the public.
Amaleka McCall-Braithwaite, Special Agent in Charge of the SBA Office of Inspector General’s Eastern Region, reiterated the commitment to safeguarding the integrity of SBA programs. She thanked the U.S. Attorney’s Office and law enforcement partners for their dedication to ensuring that those who exploit federal programs are held accountable.
Coleman had previously pleaded guilty to a count of wire fraud. United States District Judge Thomas L. Parker, who imposed the sentence, also ordered Coleman to pay $2,093,318 in restitution to the SBA and to serve a three-year term of supervision after his release from custody.
United States Attorney Kevin G. Ritz extended his gratitude to Assistant United States Attorney Tony Arvin for prosecuting the case and to the law enforcement partners involved in the investigation.
For more information, please contact the Media Relations Team at USATNW.Media@usdoj.gov. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Source: Read Original Release
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