Jessica Mathews / news@whmi.com


The United States Attorney’s Office for the Eastern District of Michigan has announced charges, pleas and sentences as part of a nationwide enforcement action that exceeded $245 (m) million in COVID-era loan fraud.

It was led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration (SBA), and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP). The Eastern District of Michigan was a key participant in the surge effort.

A release states from June 12th to September 1st, 2026; federal prosecutors across the country facilitated fraud enforcement actions spanning over 160 criminal defendants, including approximately 80 newly charged defendants, reaching approximately $245 million dollars in intended loss to American taxpayers.

“With every fraud against the government, these criminals steal from the pockets of the American taxpayer. With every prosecution, we bring justice and return money to those same Americans,” said U.S. Attorney Jerome F. Gorgon Jr.

“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”

The full release is attached.

Photo: ChatGPT