The indictment was returned on June 27, 2024, and unsealed Thursday upon the arrest of the defendant.
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Jemel Lyles, age 42, of Washington, D.C., with three counts of wire fraud, two counts of aggravated identity theft, and one count of money laundering relating to the submission of alleged fraudulent COVID-19 CARES Act loan applications. The indictment was returned on June 27, 2024, and unsealed Thursday upon the arrest of the defendant.
The defendant had an initial appearance, in the U.S. District Court in Greenbelt before U.S. Magistrate Judge Gina L. Simms.
The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office.
Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, administered through the Small Business Administration (SBA). According to the indictment, the defendant fraudulently obtained three PPP loans and spent the funds for purposes not permitted under the PPP loan program. The first PPP loan was for a construction and landscaping business that in support of that application, Lyles submitted a false payroll document, which misrepresented the size of the business’ payroll. Lyles also disguised his ownership of the business. As a result of this application, PPP funds were deposited into a bank account under Lyles’s control and later used for personal and unauthorized expenses. The indictment also alleges that Lyles obtained two PPP loans impermissibly using the identity of a Maryland resident. In support of these applications, Lyles submitted false tax documents and listed the Maryland resident’s Social Security Number as the relevant taxpayer identification number. As a result of these applications, Lyles received PPP funds, which he proceeded to use for unauthorized expenses.
If convicted, Lyles faces a maximum sentence of 20 years in federal prison for each wire fraud count; a minimum mandatory sentence of two years in prison for each aggravated identity theft count, which will run consecutive to the wire fraud sentence; and a maximum of 10 years in federal prison for money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.