A Memphis resident, Herman Shaw, has been sentenced to 30 months in federal prison for his involvement in a scheme to defraud the Paycheck Protection Program (PPP). The PPP was established to assist small businesses during the COVID-19 pandemic. Reagan Fondren, Acting United States Attorney for the Western District of Tennessee, announced the sentencing.
According to court documents, Shaw, aged 44, along with an accomplice, submitted a fraudulent PPP loan application for his trucking business, “Freight Masters, Inc.” The application falsely inflated the number of employees to secure $782,212 in loan funds. Instead of using the funds for legitimate business purposes, Shaw diverted the money to pay off gambling debts, personal expenses, and provided a $262,000 kickback to his accomplice.
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On August 2, 2024, Shaw pleaded guilty to wire fraud. He was sentenced by United States District Court Judge Thomas L. Parker on November 6, 2024. In addition to the prison term, Shaw was ordered to repay the full amount to the United States Small Business Administration. Notably, there is no parole in the federal system.
Acting U.S. Attorney Fondren emphasized the importance of protecting taxpayer funds and condemned those exploiting relief programs for personal gain. He acknowledged the efforts of the federal law enforcement agencies involved in the investigation, including the SBA Office of Inspector General, the United States Secret Service, and others.
The case was prosecuted by Assistant U.S. Attorney Tony Arvin, with Fondren expressing gratitude to all law enforcement partners for their roles in the investigation.
For further information, the U.S. Attorney’s Office can be followed on Facebook or on X for updates and office news.
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Nashville Man Sentenced for Ammunition Possession
Demetris Octavius Parrish, a Nashville resident, has been sentenced to 15 years in prison for unlawfully possessing ammunition as a convicted felon. The incident involved Parrish threatening a market manager and discharging shots at him, which was captured on surveillance. Acting U.S. Attorney Thomas J. Jaworski highlighted the office’s commitment to preventing firearm-related offenses by repeat offenders. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Metropolitan Nashville Police Department, with prosecution by Assistant U.S. Attorneys Nicholas J. Goldin and Rascoe Dean.