D.C. Business Owner Pleads Guilty to Stealing More than $1 Million in COVID-19 Relief Funds

WASHINGTON - Robert A. Terrell, 51, of Washington, D.C., and Bowie, Maryland, pleaded guilty today in U.S. District Court to falsifying documents to secure $1.35 million in COVID-19 relief funds for his business, announced U.S. Attorney Jeanine Ferris Pirro.

"Robert Terrell lied to steal over a million dollars meant to keep struggling businesses afloat, then gambled much of it away," said U.S. Attorney Pirro. "He forged documents, he denied his own name, and he thumbed his nose at a federal judge. Today, he was held accountable for his actions. My office will continue to aggressively identify fraud, bring consequences to those who misuse federal programs, and enforce strict protections for taxpayer resources."

Terrell pleaded guilty to wire fraud before the Honorable Emmet G. Sullivan.  Following the plea hearing, Judge Sullivan scheduled sentencing for February 4, 2027.  

Court documents establish that Terrell was the sole owner of District Logistics LLC, which was established in the District of Columbia in 2016. The company's services include hauling sand, dirt, gravel, and asphalt, and performing snow and ice removal. Between July 2020 and January 2022, on behalf of District Logistics, Terrell applied for an Economic Injury Disaster loan (EIDL) and two EIDL modifications.

In response to the COVID-19 pandemic, the U.S. Small Business Administration (SBA) offered Economic Injury Disaster Loans to certain entities, including small business owners. These loans were provided directly from the SBA and were low-interest, fixed-rate, long-term loans that could only be used for specified purposes.

District Logistics initially received $125,800 in EIDL funds in July 2020. After Terrell applied for a modification to the loan, the business received an additional $384,100 in EIDL money in September 2021. Terrell then sought a second loan modification requesting $2 million.

On November 29, 2021, in connection with his second modification request, Terrell submitted a Schedule of Liabilities to the SBA, which showed District Logistics as having approximately $518,000 in outstanding debt to a creditor. Approximately one month later, on January 6, 2022, Terrell emailed the SBA an updated Schedule of Liabilities, which falsely showed District Logistics as now owing the same creditor just over $71,000. Terrell attached four PNC wire transfer receipts to the email, which he had doctored to show his business as having wired more than $400,000 to the creditor when it really had wired less than $20,000. By falsely attesting that District Logistics owed less money than it did, Terrell succeeded in getting the SBA to approve a second modification to the EIDL, which resulted in District Logistics receiving an additional $1.35 million that it otherwise would not have received.

The government's investigation revealed that Terrell spent some of the EIDL funds day trading through his Robinhood account and gambling at casinos.

After he was indicted, Terrell's case took an unusual turn. At his initial appearance in U.S. District Court, Terrell admitted that his name was "Robert Alphonso Terrell." However, at his next court hearing and several thereafter, Terrell denied that he was "Robert A. Terrell" and instead insisted that he was "Robert Alphonso III, the General Executor of the Terrell Estate." He repeated this bogus assertion in various pleadings while representing himself. In March 2026, in flagrant disregard of his pretrial release conditions, Terrell traveled to the Turks and Caicos for a weekend trip after securing a new passport. Although Terrell returned to the United States following the trip, as a result of his outrageous conduct, Judge Sullivan issued an arrest warrant for Terrell and ordered him detained after he was arrested on the warrant.

Terrell was previously convicted in 1998 of Assault with a Dangerous Weapon, Possession of a Firearm during a Crime of Violence, and Carrying a Pistol Without a License.

On April 7, 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.  

This case was investigated by the Federal Bureau of Investigation Washington Field Office and is being prosecuted by Assistant U.S. Attorneys Kondi Kleinman and David Liss of the U.S. Attorney's Office for the District of Columbia.

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