Former Harlem Globetrotter Sentenced to Seven Years Prison in COVID-19 Fraud Scheme

<_w3a_listitem listvalue="RALEIGH" datavalue="RALEIGH"><_w3a_listitem listvalue="GREENVILLE" datavalue="GREENVILLE"><_w3a_listitem listvalue="NEW BERN" datavalue="NEW BERN"><_w3a_listitem listvalue="WILMINGTON" datavalue="WILMINGTON"><_w3a_listitem listvalue="ELIZABETH CITY" datavalue="ELIZABETH CITY">RALEIGH, N.C. - Quentin Allen Jackson, 58, was sentenced to 84 months in prison and ordered to pay three million dollars in restitution. Jackson pled guilty to one count of conspiracy to commit money laundering with respect to the fraudulent proceeds Paycheck Protection Act ("PPP") COVID-19 loans guaranteed by the Small Business Administration.

"We in the Carolinas idolize our basketball stars, especially the ACC greats who played on Tobacco Road," said U.S. Attorney Michael F. Easley, Jr. "As a college point guard and Harlem Globetrotter, Jackson's crossover was deadly. But he drew a foul when he used his talents and reputation to recruit people into a multi-million-dollar fraud on our nation's pandemic relief program. This seven-year prison sentence should stand as a warning to anyone who took advantage of our nation's generosity in a time of need. We are patient, persistent, and willing to use every second on the shot clock."

"Schemes to fraudulently obtain federal funds meant to provide assistance to small businesses is unacceptable," said Special Agent in Charge Donald "Trey" Eakins, Internal Revenue Service Criminal Investigation (IRS-CI) in the Charlotte Field Office. "The defendant took advantage of critical aid programs intended to provide relief for businesses affected during the pandemic by fraudulently applying for and obtaining COVID-19 program funds. "IRS Criminal Investigation special agents will continue to pursue individuals who try to exploit federal relief programs for their personal gain."

This sentence follows the recent guilty plea following four days of trial testimony of Earl Lamont Taylor, who worked with Quentin Jackson and Edward Whitaker to obtain fraudulent PPP loans. Mr. Jackson is the 27th defendant to be sentenced in this investigation, with five others awaiting sentencing.

Jackson conspired with others to obtain fraudulent PPP loans in the names of several companies under Jackson's control. After receiving the proceeds of the fraudulent PPP loans, Jackson carried out a series of steps detailed by his co-conspirators to make it appear as though the borrower's company was paying bi-weekly payroll to its employees. These actions made it appear as though Jackson's companies were paying regular wages as intended by the CARES Act. Jackson instructed his purported employees to cash the checks, and then return the illicit cash to him.

In addition to directly engaging in the PPP fraud described above, Jackson also served as a middleman, earning a fee from his co-conspirators for each additional fraudulent borrower he recruited. He ultimately recruited over a dozen individuals who obtained fraudulent PPP loans. Those Jackson recruited engaged in the same scheme described above to launder the proceeds of the fraudulent loans. Nearly $4 million of fraudulent PPP disbursements are attributable to Jackson or to individuals he recruited to the scheme.

In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was designed to provide emergency financial assistance to millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. The CARES Act and additional appropriations authorized up to $649 billion in forgivable loans to small businesses through the Paycheck Protection Program (PPP). Financial institutions issued the PPP loans, which were guaranteed by the Small Business Administration (SBA).

Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after United States District Judge James C. Dever III announced the sentence. The Internal Revenue Service (IRS) Criminal Investigation is investigating the case.

Assistant U.S. Attorneys David G. Beraka and William M. Gilmore are prosecuting the case.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-cr-00180-D.