A Tennessee man plead guilty Tuesday in connection with a scheme to defraud the Economic Injury Disaster Loan (EIDL) program, officials announced Wednesday.
EIDL is a federal stimulus program authorized to provide loans to small businesses experiencing substantial financial disruptions due to the COVID-19 pandemic as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Brian Saulsberry, 47, of Memphis, was employed by the IRS as a Program Evaluation and Risk Analyst in the Human Capital Office.
Saulsberry submitted false EIDL applications and obtained $171,400 in loan funds.
After obtaining the fraudulent loan funds, Saulsberry transferred the funds to his checking account. He then used the loan funds for purposes not authorized by the EDIL program.
Instead, he transferred $100,000 to an investment account, knowing that the property involved in the transaction was derived from unlawful activity.
Saulsberry pleaded guilty to one count of money laundering. He is scheduled to be sentenced on April 5,. He faces up to 10 years in prison.
Trial Attorney Thomas D. Campbell and Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Carroll L. André III for the Western District of Tennessee are prosecuting the case.
This case was brought as part of an interagency effort to combat and prevent CARES Act fraud by federal employees.
In October 2022, the Justice Department announced charges against five former IRS employees for defrauding federal COVID-19 relief programs. All five defendants have been convicted.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.