MEMPHIS, Tenn. — A Memphis man is facing nearly two years in federal prison for defrauding a COVID-19 relief fund of more than $2 million, according to the United States Attorney's Office in the Western District of Tennessee. U.S. Attorney Kevin G. Ritz announced the sentence for 55-year-old Dardanius Coleman on Thursday.
Coleman defrauded the Paycheck Protection Program (PPP), a federal program administered by the Small Business Administration (SBA) designed to provide emergency financial assistance to small businesses affected by the COVID-19 pandemic.
This case was investigated by the Federal Bureau of Investigation (FBI) and the SBA Office of Inspector General.
“This federal program was designed to lift hardworking citizens and small businesses in a time of need. Instead, the defendant in this case cheated the program and misused relief funds," Ritz said. " I commend our federal law enforcement partners for helping to bring this defendant to justice. This office will continue to vigorously prosecute those who defraud COVID-19 relief programs.”
Information presented in court revealed Coleman submitted fraudulent PPP applications for five alleged businesses that he controlled from April 2020 through November 2021.
The applications contained false information and fake documents with the number of employees and the amount of payroll related to the alleged businesses. After Coleman received the loan proceeds, he used the money for his personal benefit instead of putting it into his businesses.
Along with a 21-month sentence, Coleman was also ordered by United States District Judge Thomas L. Parker, to pay $2,093,318 in restitution to the SBA and serve a three-year term of supervision after release from custody.
