Greer Man Sentenced to Federal Prison for Wire Fraud, Money Laundering related to Cares Act Fraud

COLUMBIA, S.C. - Jonathan Wade Sumter, 54, of Greer, has been sentenced to more than six years in federal prison for wire fraud and money laundering related to a scheme to defraud the Paycheck Protection Plan (PPP) and the Economic Injury Disaster Loan (EIDL) programs of over $1.8 million.

Evidence obtained in the investigation revealed that between June 2020 and January 2022, Jonathan Wade Sumter, his twin brother Jason Elijah Sumter, and Gerothia McCullough devised a scheme to defraud the PPP and EIDL programs by applying for funds on behalf of sham or defunct companies. Jonathan Sumter and the others submitted applications containing phony company expenses, employee wage statements, and other false documents on behalf of the sham companies Living Water Outreach, High Consulting, Lyons Transport, GSM Home Care, Challenge Consulting, and Omni Holdings. Using these fraudulent applications, they obtained over $1.8 million of EIDL and PPP payments. Jonathan Sumter was the ringleader and submitted the applications on behalf of and with the permission of the others. When the loans were funded, the three split the proceeds.

United States District Judge Mary Geiger Lewis sentenced Johathan Sumter to 80 months' imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Jonathan Sumter's sentence will run concurrent with a 92-month sentence he was already serving for a 2023 federal conviction for health care fraud. Jason Elijah Sumter was recently sentenced to three years for his role in the fraud and Gerothia McCullough was sentenced to 12 months for her role.

To recover ill-gotten gains from the defendants, Jonathan Wade Sumter was ordered to pay $1,802,741 in restitution. Jason Elijah Sumter was ordered to pay $739,786 in restitution and he was ordered to forfeit a parcel of real property in Orangeburg County. Gerothia McCullough was ordered to pay $478,366 in restitution and she was ordered to forfeit a 2018 GMC Canyon.

This case was investigated by the Small Business Administration and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney T. DeWayne Pearson prosecuted the case.

###