Roanoke area residents charged in major PPP loan fraud scheme

Roanoke, Virginia – Twenty-four people from the greater Roanoke area have been charged by a federal grand jury in Roanoke, Virginia, on allegations of wire fraud, conspiracy to commit wire fraud, money laundering, false statements, and fraud in connection with an emergency benefits program. Returned earlier this month, the indictment was unsealed Wednesday, exposing a scheme to defraud the Paycheck Protection Program (PPP), a COVID-19 pandemic relief initiative.

Administered by the Small Business Administration (SBA), the Paycheck Protection Program was meant to provide small businesses with forgivable loans for job retention and some other needs. However, the indictment asserts that the accused individuals utilized this program, obtaining loans despite not operating any businesses between June 2020 and May 2021. Many of them were also seeking unemployment benefits concurrently.

Fraudulent Scheme and Key Players

United States Attorney Christopher R. Kavanaugh highlighted the critical role of the PPP during the global health crisis, stating, “The Paycheck Protection Program was put in place when the world’s economy was battling a once-in-a-generation health crisis. This program provided much-needed financial relief to keep small businesses open. However, in the midst of this global crisis, a small number of people saw an opportunity to commit fraud and other criminal conduct. My Office continues to work with our law enforcement partners to root out these fraudulent opportunists and hold accountable those who swindle the citizens of the United States.”

The indictment details how Jaimeka Mechelle Austin and Kiearra Desaray Gardner collected personal information from various friends and acquaintances who already owned businesses. They then submitted fraudulent PPP loan applications on their behalf. For those without established businesses, Austin and Gardner created sham business entities to fraudulently claim benefits through the PPP loan program, charging an additional fee for this service. Their efforts led to dozens of fraudulent loan applications, resulting in over $1.5 million in benefits.

Law Enforcement Response

Assistant Special Agent in Charge Stephen Farina emphasized the FBI’s commitment to protecting the American people and the Constitution. “We are committed to investigating those who seek to defraud the government and will work with our partners to ensure they are brought to justice.”

David Meisenheimer, Acting Special Agent in Charge of the IRS Criminal Investigation Washington, D.C. Field Office, condemned the defendants’ actions, stating, “During a time of unprecedented national peril, these defendants took advantage of a pandemic by stealing federal funds intended to help businesses keep their employees paid and their doors open.”

Individuals Charged

The individuals charged include:

• Jaimeka Mechelle Austin, 31, purported owner of Mechelle’s Boutique LLC.
• Ta’Quan De’Carlos Austin, 34, purported owner of Quan’o’s Chimney Sweep LLC.
• Richard David Henson Brown, 35, purported owner of Immaculate Balla Cleaning Service LLC.
• Israel Antonio Cunningham, 36, purported owner of Tate’s Lawn Care & Services LLC.
• Rahiim Noel Cunningham, 27, purported owner of Quanie’s Lounge LLC.
• Timothy Edward Cunningham, Jr., 26, purported owner of Gen5 Dog Kennels LLC.
• Mikkielia Sentoyia Fisher, 37, purported owner of Mad Stylez Clothing.
• Joshua Scott Fleming, 32, purported owner of Clear N Shine Auto Detail.
• Kiearra Desaray Gardner, 35, purported owner of businesses in the name of Kiearra Gardner and Kustom Kreationz by Kie LLC.
• Sierra Desaray Garrison, 39, purported owner of Major Pressure LLC.
• Deshawn Lamar Johnson, 34, purported owner of Affordable Car Care LLC.
• Antonio Devaughn Levesy, 36, purported owner of Squeaky Clean Mobile Detailing LLC.
• Millot Kevin Lexima, 30, purported owner of Plugd N Kennel LLC.
• Xavier Lee Manigault, 31, purported owner of The Goat Car Care LLC.
• Talisha Geornell Otey, 33, purported owner of businesses in the name of Talisha, Lash Tech, and the Butterfly Effect 540 LLC.
• Corey Durrell Steelman, 37, purported owner of Steel Hauling LLC.
• Jamal Donnell Steelman, 34, purported owner of Steel Painters LLC.
• Jessica Nicole Taylor, 34, purported owner of All In Caregiving LLC.
• Thomas Manuel Taylor, 54, purported owner of Showcase Kennels LLC.
• Denisha Michelle Walker, 31, purported owner of multiple businesses including Lit & Fit Sculpting LLC.
• Jenea Shontae Webb, 39, purported owner of Nae & Friends Childcare.
• Stephfon Davido Webb, 36, self-employed and working in the janitorial industry.
• Akeem Marquis Williams, 37, purported owner of Williams & Williams Moving Company LLC.
• A 24th defendant has been indicted but has not yet been arrested and remains under seal.

Investigation and Prosecution

The Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations led the investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael A. Baudinet, Jason M. Scheff, and Lee S. Brett.