Michigan man pleads guilty to wire fraud involving over $2 million in pandemic relief
A Southeast Michigan man pleaded guilty to a federal charge regarding over $2 million in pandemic relief fraud.
Jabari Long, 45, of Beverly Hills, entered his plea to wire fraud affecting a financial institution during a hearing Tuesday in U.S. District Court for the Eastern District of Michigan, the U.S. Attorney's Office said.
Long will be sentenced on July 28 by Judge Brandy McMillion. He faces up to 30 years in prison, U.S. Attorney Jerome F. Gorgon Jr. said.
This is one of a number of fraud cases that federal authorities have pursued in Michigan over money received from the pandemic-related relief fund programs.
Congress created the Paycheck Protection Program in March 2020 to provide emergency assistance to businesses that faced financial challenges at the outbreak of the COVID-19 pandemic. Eligible businesses could apply for loans guaranteed by the Small Business Administration, and additional requirements applied to those seeking to have the loans forgiven at a later date.
Long was accused of submitting fraudulent loan applications to the PPP and to the related Economic Injury Disaster Loans "for businesses that did not exist," the district attorney said.
Specifically, he received $2,187,000 in federal loans on behalf of Priceless Preservations Construction. This is a company that authorities said Long claimed to have 50 employees with an average monthly payroll of $875,000.
"In truth, Priceless Preservations Construction had few, if any, employees and little to no payroll expenses," the district attorney's office said.
The case was led by the Homeland Security Investigations, Detroit Division.