In a landmark case highlighting the federal government’s crackdown on COVID-19 relief fraud, Shelitha Robertson, a Georgia attorney and former City of Atlanta police officer, has been sentenced to seven years and three months in federal prison. Robertson’s conviction stems from her orchestration of an elaborate scheme to defraud the Paycheck Protection Program (PPP) of nearly $15 million. This sentencing underscores the government’s determination to safeguard taxpayer dollars and ensure that pandemic relief funds are used appropriately.
The Fraudulent PPP Scheme
Court documents and trial evidence reveal that the 62-year-old Robertson, in collaboration with Chandra Norton, submitted multiple fraudulent PPP loan applications on behalf of their respective businesses. These applications significantly inflated the number of employees and the average monthly payroll costs. Additionally, Robertson and Norton provided falsified tax documents to support their claims, resulting in the approval of disproportionately large PPP loans.
In particular, Robertson’s fraudulent activities centered around four businesses she owned. The illicit applications resulted in $7,020,779 being funneled into accounts under her control. Instead of using these funds to support legitimate business operations, Robertson used a substantial portion for personal luxury purchases, including a 10-carat diamond ring, and transferred large sums to family members and Norton.
Legal Proceedings and Convictions
In December 2023, a federal jury found Robertson guilty on charges including one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of money laundering, all related to PPP fraud. Her co-conspirator, Chandra Norton, who pleaded guilty in November 2020, is scheduled for sentencing on August 14, 2024.
Authorities’ Reactions
Principal Deputy Assistant Attorney General Nicole M. Argentieri, who heads the Justice Department’s Criminal Division, highlighted the significance of this case. “This conviction unequivocally demonstrates that leveraging pandemic relief programs for personal profit will face zero tolerance. We will continue to pursue and prosecute those who commit such egregious acts of fraud.”
U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia echoed these sentiments, emphasizing the importance of protecting federal programs designed to assist businesses during the pandemic. “Maintaining the integrity of the PPP is of utmost importance. This program was established to help struggling businesses survive the economic impact of the pandemic, not to line the pockets of fraudsters.”
Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA-OIG) praised the collaborative efforts that led to Robertson’s conviction. “Our office, along with our investigative partners, is committed to uncovering and prosecuting fraud. This case is a testament to the hard work and dedication of our teams.”
Investigative and Prosecutorial Efforts
The extensive investigation was conducted by the SBA-OIG, the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), and the Treasury Inspector General for Tax Administration (TIGTA). These agencies meticulously gathered and analyzed evidence, which was crucial in securing the convictions.
Trial Attorney Ariel Glasner from the Criminal Division’s Fraud Section and Assistant U.S. Attorney Bernita Malloy from the Northern District of Georgia spearheaded the prosecution. Their efforts ensured that Robertson faced justice, reflecting the Department of Justice’s commitment to tackling complex financial fraud.
Wider Implications and Future Actions
The sentencing of Shelitha Robertson serves as a stern warning to others who might consider exploiting government relief programs. The federal government remains vigilant, with ongoing efforts to identify, investigate, and prosecute individuals who commit PPP fraud. This case exemplifies the rigorous enforcement actions taken to protect the integrity of federal aid programs and the responsible use of taxpayer dollars.
The Justice Department continues to encourage the public to report suspected fraud involving COVID-19 relief programs. Tips can be submitted to the National Center for Disaster Fraud (NCDF) through their hotline or online complaint form. By maintaining a robust reporting and investigative framework, the government aims to ensure that relief funds benefit those truly in need and uphold public trust in federal assistance programs.
Conclusion
The case against Shelitha Robertson highlights the federal government’s unwavering stance against PPP fraud. Through collaborative efforts between various investigative agencies and dedicated prosecution teams, justice was served. As the nation continues to recover from the economic impact of the pandemic, safeguarding relief funds, including those from the PPP, remains a top priority. This ensures they reach and support legitimate businesses and not individuals attempting to exploit the system for personal benefit.
