Docterance Atkins, a 32-year-old resident of Sledge, Mississippi, has been sentenced to 37 months in federal prison for his role in a scheme involving wire fraud conspiracy and money laundering related to COVID-19 relief funds. Atkins previously pleaded guilty to one count of wire fraud and one count of money laundering.
The case originated from an IRS Criminal Investigation (IRS-CI) tip that Atkins was involved in COVID-19-related fraud. According to investigators, Atkins recruited individuals from his community and convinced them to submit fraudulent applications for CARES Act Relief funds. The total amount stolen through the scheme was nearly $750,000.
Atkins assisted several people in filing false Paycheck Protection Program (PPP) loan applications by providing inaccurate information about employee numbers and business operations. In exchange for his help, he received kickbacks once the loans were approved. The PPP was established as part of the federal response to the COVID-19 pandemic and administered by the Small Business Administration to support small businesses with forgivable loans intended for job retention and other expenses.
U.S. District Court Judge Sharion Aycock handed down the sentence, which includes 37 months in prison followed by five years of supervised release. Restitution is also required.
“This defendant exploited a national emergency and stole money that was meant to help businesses suffering during the COVID-19 pandemic,” stated U.S. Attorney Scott Leary. “He has been held accountable and we will recover this money for American taxpayers.”
“Those who defrauded the COVID-19 economic program for small businesses took funds designated to help retain employees and used it for their personal gain,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “Docterance Atkins sentence sends a strong message that IRS Criminal Investigation special agents and our law enforcement partners will continue searching and investigating the criminals who took advantage of economic programs created to help small businesses and taxpayers.”
The investigation was conducted by IRS Criminal Investigation Division, with Assistant U.S. Attorney Sam Stringfellow prosecuting the case.
Individuals can report suspected fraud involving COVID-19 government relief programs through multiple channels: visiting the Civil Division’s Fraud Section webpage; calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721; or submitting information via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Justice Department’s Fraud Section leads prosecutions against those exploiting PPP funds nationwide. Since passage of the CARES Act, over 150 defendants have been prosecuted across more than 95 criminal cases related to PPP fraud, resulting in seizures exceeding $75 million along with various assets purchased using fraudulent proceeds. More details are available at Justice.gov/OPA/pr/justice-department-takes-action-against-covid-19-fraud.
