Fayette County man sentenced to federal prison for car loan scheme and COVID-related fraud (DOJ)

ATLANTA - Hugh A. Brown, Jr. was sentenced to federal prison today for fraudulently obtaining roughly $1.25 million in pandemic relief and auto loans.

"This defendant shamelessly fleeced federal taxpayers and financial institutions over half a decade through various loan fraud schemes," said U.S. Attorney Theodore S. Hertzberg. "My office will continue to prosecute and seek prison time for anyone who abuses government relief programs."

"Submitting false information to obtain federal pandemic relief funds, using fraudulent documents and deliberate misrepresentations to secure loans from banks and credit unions, are serious offenses that undermine the integrity of our financial institutions and erode public trust," said Acting Assistant Special Agent in Charge Patrick M. Palmer, IRS Criminal Investigation, Atlanta Field Office. "IRS Criminal Investigation remains steadfast in its commitment to identifying and investigating financial fraud. Working alongside our federal law enforcement partners and the U.S. Attorney's Office, we will continue to protect taxpayers, safeguard the integrity of our financial system, and ensure that individuals who exploit these institutions for personal gain are held accountable under the law."

"The U.S. Postal Inspection Service sees firsthand through investigations how devastating fraud and deception can be on our communities. That's why we commit, every day, to bring criminals that choose to undermine the integrity of our financial system and betray the trust of lenders to justice," said Rodney M. Hopkins, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service. "The defendant in this case stole money earmarked to help people in a time of economic uncertainty and used it to increase their bank account. The Postal Inspection Service's message and mission are clear: You commit fraud, exploit our financial systems, and do harm to our communities, we will find you and bring you to justice."

According to U.S. Attorney Hertzberg, the indictment, and other information presented in court: In 2020, Brown applied for a Paycheck Protection Program (PPP) loan by submitting false payroll information and fake IRS tax forms to a federally insured bank. As a result of the bogus application, Brown received a $162,500 PPP loan.

In 2022, Brown fraudulently claimed Employee Retention Credits (ERCs), a refundable tax credit designed to encourage employers to continue to pay employees during COVID-19, on behalf of his company. After filing fraudulent tax returns, Brown received seven United States Treasury checks totaling $644,452.98 in ERCs and other credits.

In addition, from at least February 2022 through February 2025, Brown obtained fraudulent bank and credit union loans worth nearly $450,000 by submitting fake documents, misrepresenting employment/income information, and providing fictitious vehicle details as loan collateral.

Today, U.S. District Judge Victoria M. Calvert sentenced Hugh A. Brown, Jr., 35, of Fayetteville, Georgia, to two years, nine months in prison to be followed by five years of supervised release. Brown also was ordered to pay $1,244,243.81 in restitution to the Small Business Administration, the Internal Revenue Service, and financial institutions. On June 3, 2026, Brown pleaded guilty to bank fraud conspiracy and bank fraud.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service, and the U.S. Postal Inspection Service. Valuable assistance was provided by Homeland Security Investigations.

For further information please contact the U.S. Attorney's Public Affairs Office at [email protected] or (404) 581-6185. The Internet address for the U.S. Attorney's Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.