Coordinated Law Enforcement Actions Results in Arrests of Seven Men in Connection with Fraudulent COVID-19 Relief Loan Applications

LAS VEGAS - As a result of coordinated law enforcement actions in three states, seven men have been arrested and indicted in connection with submitting fraudulent COVID-19 relief loan applications administered by the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program, totaling $205,639 in fraudulent loan proceeds. The takedown was conducted by the FBI Las Vegas Field Office; FBI Phoenix Division; FBI Houston Division, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department.

"This case demonstrates the power of a true whole-of-government approach to deliver swift justice against fraudsters-and it should be replicated in every region across the United States," said Assistant Attorney General Colin M. McDonald of the Justice Department's National Fraud Enforcement Division. "I commend the outstanding work of the U.S. Attorney's Office for the District of Nevada, the FBI, the SBA-OIG, the Las Vegas Metropolitan Police Department, and the North Las Vegas Metropolitan Police Department for holding these individuals accountable."

"Seven defendants are alleged to have exploited government-funded programs designed to provide emergency financial assistance to Americans to line their pockets," said First Assistant United States Attorney Sigal Chattah for the District of Nevada. "Thanks to the outstanding investigative efforts by the FBI, SBA-OIG, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department these defendants will now each have their day in court to face federal criminal fraud charges."

"Exploiting federal programs intended to support small businesses is unacceptable," said Special Agent in Charge Christopher S. Delzotto for the FBI Las Vegas Field Office. "The defendants used the Covid-19 pandemic as an opportunity to steal from taxpayers for personal gain and should be held fully accountable. The FBI and our partners remain committed to identifying and investigating those who seek to defraud federal programs designed to assist businesses in need of operational support."

According to allegations contained in court documents, Elias Santino Acereto; Sheyland Juakeen Barnett; James Sean Freeman II; Yves Garry Harrison-Pierre; Tyrone Tatrice Johnson; Marcus Dushun McMillian-Bonner; and Nathan Jeffry Scott, all of Las Vegas, each provided false information and fake documentation when applying for PPP loans and/or EIDL loans. As alleged, they each fraudulently obtained the loan funds to enrich themselves.

Acereto; Barnett; Johnson; McMillian-Bonner; Harrison-Pierre; and Scott are each charged with one count of wire fraud; and Freeman is charged with two counts of wire fraud. On June 11, Barnett, Freeman, Johnson, and Scott were arrested in Las Vegas; Acereto and Harrison-Pierre were arrested in Phoenix, and McMillian-Bonner was arrested in Richmond, Texas.

If convicted, the maximum statutory penalty is 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Colin M. McDonald of the Justice Department's National Fraud Enforcement Division, First Assistant United States Attorney Sigal Chattah for the District of Nevada, and Special Agent in Charge Christopher S. Delzotto for the FBI Las Vegas Field Office made the announcement.

The FBI Las Vegas Field Office, SBA-OIG, Las Vegas Metropolitan Police Department, and North Las Vegas Metropolitan Police Department investigated these cases. The FBI Phoenix Division and FBI Houston Division provided valuable assistance with the arrests of the defendants. Assistant United States Attorney Kimberly Frayn is prosecuting these cases.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support 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.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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