CONVICTED FELON PLEADS GUILTY TO PANDEMIC RELIEF PROGRAM FRAUD

Muncy McAllister, III, age 39, of Denham Springs, Louisiana, pleaded guilty to three counts of wire fraud before U.S. District Judge Brian A. Jackson in connection with his scheme to obtain funds from a federal pandemic assistance program by submitting false and fraudulent applications.

According to admissions made as part of his guilty plea, McAllister submitted two fraudulent EIDL applications in August of 2020, one in his own name and one in the name of Famtight. Both applications falsely claimed significant business revenue, multiple employees and that he had no recent felony convictions. Based on these misrepresentations, McAllister attempted to get over $177,000 in EIDL loans.

"This office will continue to safeguard federal relief programs intended to support legitimate small businesses," U.S. Attorney Wall said. "Individuals who defraud these programs, especially during a national emergency, will be held accountable."

The case was investigated and prosecuted by the U.S. Attorney's Office for the Middle District of Louisiana. Assistant U.S. Attorney Jessica M.P. Thornhill, who also serves a Deputy Criminal Chief, led the prosecution.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud 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.