Active duty Army soldiers charged and convicted for obtaining fraudulent COVID 19 related loans

RICHMOND, Va. - Two active-duty U.S. Army soldiers pled guilty to, and a third soldier was charged with, obtaining fraudulent loans through a COVID-19 relief program while stationed at Fort Gregg-Adams.

Major Eduwell Jenkins, 42, pled guilty today to defrauding the Small Business Administration (SBA) by obtaining a fraudulent loan through the Paycheck Protection Program (PPP). Also today, a federal grand jury returned an eight-count indictment charging Sergeant First Class Crispin Antonio Abad, 42, with obtaining two fraudulent PPP loans while on active duty. On Nov. 5, Sergeant Malaysia Stubbs, 30, pled guilty to obtaining a fraudulent PPP loan.

According to their plea documents, Jenkins and Stubbs filed for fraudulent PPP loans in 2021. Though they were active-duty soldiers, Jenkins and Stubbs falsely represented to the SBA that they each had jobs separate from their military employment that generated over $100,000 in annual income. To substantiate this false income, Jenkins and Stubbs generated fabricated Internal Revenue Service (IRS) tax return forms, submitting them to the SBA as supporting documentation for the PPP applications. Jenkins and Stubbs never submitted these falsified tax return forms to the IRS as part of legitimate tax filings. Based on their false submittals, Jenkins and Stubbs each received over $20,000 in government-backed PPP loans to which they were not entitled.

Separately, an indictment alleges that, while stationed at Fort Gregg-Adams in 2021, Abad was responsible for, among other things, enforcing the Army's Honor Code and Standards of Conduct. In April 2021, Abad allegedly applied for two fraudulent PPP loans, claiming exactly $100,000 in income in 2020 from a business named "Granny's Delight." Abad allegedly represented that his business was to sell his grandmother's pies. To substantiate this false income, Abad allegedly generated a fabricated IRS tax return form, submitting this form to the SBA as supporting documentation for the PPP applications. According to the indictment, Abad never submitted this falsified IRS tax return form to the IRS as part of legitimate tax filings. As a result of his false submittals, Abad allegedly received over $41,000 in PPP loans to which he was not entitled. Abad then allegedly used fraudulently obtained funds for various luxury and recreational spending, including purchases at the Fort Gregg-Adams Golf Course, Ace Adventure Resort in West Virginia, Victoria's Secret, Sunglass Hut, and the Virginia ABC Store. Additionally, Abad allegedly purchased jewelry at Reeds Jeweler and withdrew hundreds of dollars in fraud proceeds at the MGM Casino in National Harbor, Maryland.

Jenkins is scheduled to be sentenced on March 25, 2025. Stubbs is scheduled to be sentenced on March 20, 2025. Jenkins and Stubbs face a maximum penalty of 5 years in prison. If convicted, Abad faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Keith K. Kelly, Special Agent in Charge of the Department of the Army Criminal Investigation Division's Fraud Field Office; and Christopher Dillard, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service's (DCIS) Mid-Atlantic Field Office, made the announcement.

Assistant U.S. Attorney Avi Panth is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney's Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-139 (Jenkins), Case No. 3:24-cr-159 (Stubbs), and Case No. 3:24-cr-178 (Abad).

An indictment is merely an accusation. A defendant is presumed innocent until proven guilty.