The United States Attorney’s Office in the Northern District of Mississippi has charged an attorney with generating over $11.5 million in fraudulent loan payments following a collaborative investigation with Mississippi and federal officials.
According to the attorney’s office, Lakieth Faulkner worked as both an attorney and a Small Business Administration employee, assisting borrowers in obtaining loans.
According to authorities, Faulkner was well-positioned to comprehend the Economic Injury Disaster Loan (EIDL) approval process and allegedly created a kickback scheme with coconspirators to generate over $11.5 million in fraudulent loan disbursements by the SBA.
The attorney’s office stated that one of the co-conspirators was a former IRS employee.
U.S. Attorney Leary stated, “We have $2.2 billion in PPP loans that took place in the Northern District of Mississippi, with an estimated $1 billion in fraud.
Scott F. Leary, US Attorney for the Northern District of Mississippi, was joined by Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division, other DOJ leaders, and federal and state law enforcement partners in announcing a series of fraud enforcement actions across the Southeastern United States.
The current prosecutions encompass $350 million in damages from SNAP assistance, SBA loans, housing benefits, and tax fraud.
The Division separately announced the formation of federal-state anti-fraud task forces in Mississippi, North Carolina, and Florida.
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