Man Pleads Guilty to COVID-19 Loan Fraud Scheme

LAS VEGAS - A man who resides in Las Vegas, Nevada, and Los Angeles, California, pleaded guilty today to a scheme to defraud the Small Business Administration (SBA) out of nearly $54,166 in PPP and EIDL loan money that he was not entitled to receive.

"We will never tolerate thieves who stole from the American people during one of the most painful crises in our nation's history," said First Assistant United States Attorney Sigal Chattah for the District of Nevada. "This defendant shamelessly used a global pandemic as a personal piggy bank, stripping vital lifelines away from struggling workers and honest business owners who genuinely needed help to survive. Today's guilty plea ensures he will face the full consequence of his greed. Let this serve as an unmistakable warning to anyone who thinks they got away with pandemic fraud: we are still watching, we are still tracking you down, and we will not rest until every single dollar is recovered and every fraudster is behind bars."

"Abusing federal programs supporting small businesses is intolerable," said Special Agent in Charge Christopher S. Delzotto for the FBI Las Vegas Field Office. "The defendant exploited a public health crisis for personal enrichment and today's sentence holds him accountable. The FBI remains steadfast in tracking down and investigating anyone who attempts to defraud government programs created to keep business afloat."

According to court documents, from about January 18, 2021, and about August 23, 2022, Desjon Antione Lang Burke fraudulently submitted an application for an EIDL loan to the SBA and two applications for PPP loans to a non-bank direct commercial lender. The applications contained false and fraudulent information, including that Burke was the sole proprietor of a non-profit agricultural business that did not exist; that the business employed 10 people, which it did not; and false information regarding the business revenue received and costs incurred by the non-existent company. On April 13, 2021, Burke submitted an application for a PPP loan with fake Schedule C form for tax year 2019.

Burke pleaded guilty to one count of wire fraud. The maximum statutory penalty is 20 years in prison. Sentencing has been scheduled for February 3, 2027, before Chief United States District Judge Andrew P. Gordon.

This case was investigated by the FBI, the SBA OIG, and the Federal Reserve Board-CFPB Office of Inspector General. Assistant United States Attorney Kimberly Frayn is prosecuting the case.

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