Fake Music Producer Sentenced to Prison for Stealing PPP Loans in Nationwide Scheme

RALEIGH, N.C. - A Federal Judge sentenced Larico D. Steele, 53, to 1 year in federal prison, 3 years of supervised release, and ordered him to pay over $150,000.00 restitution to the Small Business Administration. Steele pleaded guilty to Conspiracy to Commit Wire Fraud and Conspiracy to Commit Money Laundering. Steele participated in a nationwide multimillion-dollar Paycheck Protection Program (PPP) fraud scheme. The EDNC United States Attorney's Office has obtained over thirty prison sentences over the course of the investigation.

"Congress enacted this program to assist real American businesses who suffered when the governments forced the economy to close related to perceived COVID health scares. Greedy grifters descended like crabs to pick away these funds for illicit gain. Do what your mamma taught you, don't steal. Cheaters never win." said U.S. Attorney W. Ellis Boyle.

"Today's sentencing reflects our commitment to holding individuals accountable for defrauding the government," said Donald "Trey" Eakins, Special Agent in Charge of the Charlotte Field Office, IRS Criminal Investigation. "Our special agents, alongside the U.S. Attorney's Office and other partners, will continue to target those who exploit federal relief programs for personal gain."

According to evidence presented in court, Steele worked with Edward Whitaker to obtain a fraudulent PPP loan based on bogus payroll information related to Steele's purported music business, Steele Entertainment, LLC. Steele lied, grossly inflating both the number of purported employees and their salaries. After obtaining the loan, Steele then laundered 25% of the PPP proceeds back to Whitaker through cashier's checks through a shell bank account. Last December, a federal judge in the EDNC sentenced Whitaker to 10 years in federal prison for his role as a ringleader in the scheme.

Other defendants that have been sentenced in the broader "Loanstarters" PPP scheme include:

• Albert Eugene Miller, Jr. [Case No. 5-22-CR-00290-D]

• Jonathan Fleming [Case No. 5-22-CR-00337-D]

• Nekita Hooks [Case No. 5-23-CR-00025-D]

• Denise Coit Alston [Case No. 5-23-CR-00077-D]

• Monica Faye Barnes [Case No. 5:23-CR-00094-D]

• Dontrell Barnes [Case No. 5-23-CR-00094-D]

• Isaac Lamont Dawson [Case No. 5:23-CR-0097-D]

• Irene Edwards [Case No. 5-23-CR-00098-D]

• Natosia Jerome Jenkins [Case No. 5:23-CR-00167-D]

• Ronald L. Jones [Case No. 5:23-CR-00339-D]

• Delvin Dashavone Felder [Case No. 5:23-CR-00198]

• Shun Lamont Gibbs [Case No. 5:23-CR-00346-D]

• Teresa Ann McRae [Case No. 5:23-CR-00313-D]

• Dontae Antonio Murphy [Case No. 5:24-CR-00072]

• Jackson Ndoyo [Case No. 5-23-CR-00118-D]

• Terron Cortez Parker [Case No. 5-23-CR-00081-D]

• Ayyub Abdur Rasheed [Case No. 5:23-CR-00314-D]

• Karim Aziz Razzak [Case No. 5:23-CR-00324]

• Toni A. Smith [Case No. 5:23-CR-00312-D]

• Darian Casteele Tyler [Case No. 5:23-CR-00338-D]

• Shakeerah Kaneisha Yvette Vinson [Case No. 5-23-CR-00027-D]

• Anthony S. Whitaker [Case No. 5:23-CR-00311-D]

• James Elton Watson Case No. 5:23-CR-00323-D]

• Shara Monique Wells [Case No. 5:23-CR-00323-D]

• Kami D. Woodard [Case No. 5-23-CR-00095-D]

• Lenille Woodard [Case No. 5-23-CR-00138-D]

• Quentin Jackson [Case No. 5-22-CR-180-D]

• Everett M. McBride [Case No. 5:24-CR-00036-D]

• Hanif Abdul-Hakim [Case No. 5:24-CR-00109-D]

• Schunda Coleman [Case No. 5-22-CR-00257-D]

• Edward Whitaker [Case No. 5-22-CR-00257-D]

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to the millions of Americans who were economically suffering from the COVID-19 pandemic. The CARES Act and additional appropriations authorized up to $649 billion in forgivable loans to small businesses through the Paycheck Protection Program. Financial institutions issued the PPP loans, which were guaranteed by the Small Business Administration (SBA).

W. Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. District Judge James C. Dever III announced the sentence. IRS Criminal Investigations investigated the case and Assistant U.S. Attorney David G. Beraka prosecuted the case.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North CarolinaLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. or on PACERLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. by searching for Case No. 5:25-CR-00123-D.