California Businessman Sentenced to Three and a Half Years in Federal Prison for Orchestrating $14 Million Covid-Relief Fraud

CHICAGO - A California businessman has been sentenced to three and a half years in federal prison for fraudulently obtaining more than $14 million in small business loans under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act.

DARREN CARLYLE SADLER participated in a scheme to fraudulently obtain loans pursuant to the Paycheck Protection Program ("PPP"), which was created by the CARES Act to provide financial relief for small businesses during the Covid-19 pandemic. In 2020, Sadler submitted and caused the submission of at least 63 PPP loan applications for himself and his clients. The applications falsely represented, among other things, the number of employees and the average monthly payroll of the purported businesses. The false applications resulted in the issuance of more than $14 million in loans to Sadler and his clients, including $1.3 million in loans for Sadler himself. Sadler also received more than $1.9 million in fees from clients for fraudulently obtaining the loans on their behalf.

Sadler used the fraud proceeds to rent a villa for several months during the pandemic and to travel across the country on private jets to meet clients at bank branches to secure fund transfers. He also purchased luxury vehicles, including a Rolls Royce, multiple Mercedes-Benzes, and a Land Rover.

Sadler, 40, of Sacramento, Calif., pleaded guilty last year to a federal wire fraud charge. On Tuesday, U.S. District Judge Thomas M. Durkin sentenced Sadler to 42 months in federal prison and ordered him to pay more than $14,692,762 in restitution. The government also seized a bank account controlled by Sadler worth more than $1.8 million, which was turned over to the government pursuant to court order.

The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois; Ryan Whalen, Special Agent-in-Charge of the Chicago Field Office of the FBI; Nicholas Bucciarelli, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service; and William W. Kirk, Inspector General of the U.S. Small Business Administration, Office of the Inspector General.

"It is uncontroverted that defendant's offense conduct was serious and borne of greed," Assistant U.S. Attorney Kartik K. Raman argued in the government's sentencing memorandum. "To enrich himself, defendant engaged in an extremely large, complex scheme that defrauded an important pandemic financial assistance program during a time of great uncertainty."

Consistent with the Administration's priorities to identify, investigate, and prosecute criminal fraud in the federal government entitlement and benefit programs, the U.S. Attorney's Office for the Northern District of Illinois has been taking a fresh look at Covid-19 fraud.

On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.