40 U.S. Attorney’s Offices, along with 20 federal and state investigative agencies, participate in two-month enforcement surge
OKLAHOMA CITY – The U.S. Attorney’s Office for the Western District of Oklahoma today announced charges against five defendants as part of a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration, and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP). The Western District of Oklahoma was a key participant in this surge effort.
From June 12 to September 1, federal prosecutors across the country facilitated fraud enforcement actions spanning over 160 criminal defendants, including approximately 80 newly charged defendants, reaching approximately $245 million dollars in intended loss to American taxpayers.
“Those who exploited pandemic relief programs stole resources intended for legitimate businesses struggling to keep their doors open,” said U.S. Attorney Robert J. Troester. “The cases brought in the Western District of Oklahoma demonstrate that fraud committed years ago will not simply be forgotten. Our office will continue to follow the evidence, pursue those who abused these programs, and seek justice on behalf of the American taxpayers who funded them.”
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder-to-shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”
“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”
“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”
In the Western District of Oklahoma, the following defendants have been charged:
Assistant U.S. Attorneys D.H. Dilbeck, Danielle London, and Jackson D. Eldridge are prosecuting the cases.
As part of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, this investigation was conducted by Manager Steve Hanson. The PRAC promotes transparency and supports oversight of the funds provided by the CARES Act, other emergency coronavirus-related spending bills, and the One Big Beautiful Bill Act. The PRAC and its member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement, including in spending in the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s advanced data analytics center, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.
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.
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