2025-02-27 DOJ SDNY press_release 119 KB 5,224 chars

Mount Vernon Native Sentenced To 11 Years In Prison For Orchestrating $7.6 Million COVID-19 Fraud Scheme

Caption: United States v. Conviction Date, et al.

summary

Jacob Carter, a Mount Vernon native, was sentenced to 11 years in prison for orchestrating a $7.6 million COVID-19 fraud scheme by submitting over 1,000 fraudulent U.S. Small Business Administration Economic Injury Disaster Loan applications using stolen identities.

paragraph

Jacob Carter led a scheme to defraud the U.S. Small Business Administration of more than $7.6 million by submitting over 1,000 online applications using stolen identities. Carter and co-defendants falsely claimed the applicants owned businesses with 10 or more employees to secure advance payments, then collected over $1.7 million in kickbacks. Carter was sentenced to 11 years in prison and ordered to pay $7,737,000 in restitution to the SBA and $1,720,950 in forfeiture.

narrative

Jacob Carter, a 39-year-old from Capitol Heights, Maryland, was convicted of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft for running a scheme that used the identities of more than 1,000 people to obtain over $10 million in U.S. Small Business Administration Economic Injury Disaster Loans. Carter and co-defendants Quadri and Anwar Salahuddin, along with Crystal Ransom, submitted over 1,000 fraudulent EIDL applications, falsely claiming that individuals were business owners with 10 or more employees, resulting in over $7.6 million in advance payments to the applicants. The applicants then returned a portion of the advance payments as kickbacks to Carter and his co-defendants. Carter personally received over $1.7 million in kickbacks, which he used for luxury items such as expensive jewelry and a Lamborghini. At sentencing, U.S. District Judge Nelson S. Román imposed 11 years’ imprisonment, three years of supervised release, $7,737,000 in restitution to the SBA, and $1,720,950 in forfeiture. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of New York with assistance from the FBI and the Air Force Office of Special Investigations.

Enriched metadata

Scheme: financial-fraud (90%)
Court: Southern District of New York
Outcome: convicted · 2024-02-09
Restitution: $7,737,000
Victim loss: $10,000,000

Classified financial-fraud(confidence 90%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 67% / precision 23%. detection rule →

Extracted insights

Dollar amounts 12

$10.00M $10 million $10M–$100M
$7.74M $7,737,000 $1M–$10M
$7.60M $7.6 Million $1M–$10M
$7.60M $7.6 million $1M–$10M
$7.58M $7,577,000 $1M–$10M
$2.00M $2 million $1M–$10M
$1.72M $1,720,950 $1M–$10M
$1.70M $1.7 Million $1M–$10M
$150K $150,000 $100K–$1M
$99K $99,000 $10K–$100K
$10K $10,000 $10K–$100K
$1K $1,000 <$10K

Entities 6

scheme_term conspiracy to commit wire fraud, wire fraud, and aggravated identity theft
person conviction date
person jacob carter
person Matthew Podolsky
scheme_term over $1.7 million in kickbacks
person sentencing date

Triples 13

Jacob Carter sentenced to 11 years in prison
Jacob Carter orchestrated $7.6 Million COVID-19 Fraud Scheme
Jacob Carter received Over $1.7 Million in kickbacks
Jacob Carter led scheme to defraud the SBA of more than $7.6 million
Jacob Carter, Quadri Salahuddin, Anwar Salahuddin convicted of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft
Jacob Carter, Quadri Salahuddin, Anwar Salahuddin, Crystal Ransom submitted more than 1,000 fraudulent EIDL applications to the SBA
Jacob Carter, Quadri Salahuddin, Anwar Salahuddin, Crystal Ransom falsely represented that applicants owned businesses with 10 or more employees
SBA made advance payments of more than $7.6 million
U.S. District Judge Nelson S. Román sentenced Jacob Carter to 11 years in prison
Matthew Podolsky announced Jacob Carter's sentencing
Jacob Carter used ill-gotten gains for expensive jewelry and a Lamborghini
Conviction date occurred on February 9, 2024
Sentencing date occurred on February 27, 2025

View original DOJ press releasejustice.gov

Extracted body text (5,224c)

Press Release Mount Vernon Native Sentenced To 11 Years In Prison For Orchestrating $7.6 Million COVID-19 Fraud Scheme Thursday, February 27, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Jacob Carter Personally Received Over $1.7 Million in Kickbacks for Obtaining U.S. Small Business Administration Economic Injury Disaster Loans for Over 1,000 Applicants Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JACOB CARTER, who led a scheme to defraud the U.S. Small Business Administration (“SBA”) of more than $7.6 million, was sentenced by U.S. District Judge Nelson S. Román to 11 years in prison. CARTER and co-defendants Quadri Salahuddin and Anwar Salahuddin were convicted at trial on February 9, 2024, for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.Acting U.S. Attorney Matthew Podolsky said: “Jacob Carter took advantage of a taxpayer-funded program intended to help small businesses in desperate need during the COVID-19 pandemic. Some small businesses that were eligible for and deserving of this money did not get it because funds ran out. Carter used his ill-gotten gains for far more selfish pursuits, including expensive jewelry and a Lamborghini. Thanks to the work of our law enforcement partners at the FBI and the career prosecutors of this Office, Carter has now received just punishment.”According to the Indictment, publics filings, public court proceedings and filings, and the evidence presented at trial and in connection with sentencing:The SBA is a federal agency of the Executive Branch that administers assistance to American small businesses. This assistance includes making direct loans to applicants through the Economic Injury Disaster Loan (“EIDL”) Program. In response to the COVID-19 pandemic, Congress expanded SBA’s EIDL Program to provide small businesses with low-interest loans of up to $2 million prior to in or about May 2020 and up to $150,000 beginning in or about May 2020, in order to provide vital economic support to help overcome the loss of revenue small businesses are experiencing due to COVID-19. Applicants seeking a loan under the EIDL program were also now permitted to request and receive an advance of approximately $1,000 per employee, for an amount up to $10,000, which the SBA has generally provided while the loan application was pending.From March through July 2020, CARTER and co-defendants Quadri Salahuddin, Anwar Salahuddin, and Crystal Ransom, used the identities of more than 1,000 other individuals (the “Applicants”) to submit more than 1,000 online applications to the SBA, seeking over $10 million of funds through the SBA’s EIDL Program (the “EIDL Applications”). In connection with the EIDL Applications, CARTER, Quadri Salahuddin, Anwar Salahuddin, and Ransom falsely represented to the SBA that the Applicants were the owners of businesses with 10 or more employees. However, that was a lie – the individuals did not own businesses or employ people. Based on the fraudulent EIDL Applications, the SBA made advance payments of more than $7.6 million to the Applicants, who then kicked back a portion of the advance payments to CARTER, Quadri Salahuddin, Anwar Salahuddin, and Ransom. After the defendants collected millions of dollars in kickback payments, CARTER took photographs of his stacks of cash, purchased expensive jewelry, and leased a Lamborghini.* * *In addition to the prison term, CARTER, 39, of Capitol Heights, Maryland, was sentenced to three years of supervised release. CARTER was also ordered to pay restitution in the amount of $7,737,000 to the SBA and forfeiture in the amount of $1,720,950.Ransom pled guilty to conspiracy to commit wire fraud and was sentenced on April 24, 2024, to two years in prison to be followed by three years of supervised release with the first six months under home confinement. The Court also ordered that Ransom pay restitution in the amount of $7,577,000 to the SBA and forfeiture in the amount of $99,000. Quadri Salahuddin and Anwar Salahuddin are scheduled to be sentenced on March 26, 2025.Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation and the Air Force Office of Special Investigations.The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman, Courtney L. Heavey, and Jared D. Hoffman are in charge of the prosecution. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated February 27, 2025 Component USAO - New York, Southern Press Release Number: 25-045

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