Two Former Airforce Airmen Indicted for a Scheme to Obtain $300,000 in COVID-19 Relief Funds

Press Release

Spokane, Washington - United States Attorney Vanessa R. Waldref announced that on November 7, 2024, a federal grand jury for the Eastern District of Washington returned an indictment charging Taylor Jashaun Kendall, age 26, of Spokane, Washington, and Michael Tyriq Allen, age 26, of Gainesville, Georgia, with a dozen counts of fraud as part of a scheme to obtain COVID-19 relief funding.

On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One program, the Paycheck Protection Program (PPP) program, offered forgivable loans to eligible small businesses in order to retain or rehire employees who lost their jobs, or were in danger of doing so, due to the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide "bridge" funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which has not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.

According to the indictment, between June 2020 and May 2021, Kendall and Allen fraudulently obtained at least $300,000 in CARES act funding through the EIDL and PPP programs. Both Kendall and Allen are former U.S. Airforce Airmen. Kendall was an Airman stationed at Fairchild Airforce Base during the timeframe alleged in the Indictment.

As alleged in the indictment, between June 18, 2020, and June 24, 2020, Kendall and Allen submitted three separate applications for Economic Injury Disaster Loans using false and fraudulent information. In each of the applications, Kendall and Allen claimed their business was engaged in agriculture, had 10 employees, and monthly revenue of $4,625.00. Two of the three applications were approved, and Kendall and Allen allegedly received $20,000 in EIDL funds.

The indictment alleges that in March 2021, Kendall and Allen submitted two separate applications for Payroll Protection Program loans using false and fraudulent information. Then in April 2021, Kendall and Allen, submitted a Second Draw PPP application. The indictment alleges all three PPP applications were approved and Kendall and Allan received more than $61,000 in PPP funds.

The indictment further alleges that Kendall and Allan also submitted false and fraudulent PPP and EIDL applications on behalf of other individuals using false information. Individuals who received these funds then sent a portion of the money back to Kendall and Allen. In total, Kendall and Allen submitted fraudulent applications resulting in the disbursement of at least $80,000 in EIDL advances and $269,900 in PPP loan funds.

Three other former Airmen have entered into criminal diversion agreements with the United States in relation to their participation in the scheme: Julius Dixon (2:23-cr-00086), Roderick Smith (2:24-cr-00109), and Richard Rosales (2:23-cr-00118).

"COVID-19 relief programs were designed to lift up our community during crisis. Due to the number of people and businesses that requested funding, some deserving small businesses did not receive critical funding to keep their doors open through the pandemic, which impacted their employees, their families, and our local economy." said U.S. Attorney Waldref. "We created the COVID Fraud Strike Force to ensure that those who misused COVID-19 relief funding are held accountable and to protect the strength and safety of our vital small business community."

The fraud charges against Kendall and Allen carry a maximum sentence of up to 30 years in federal prison.

This case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force, the Small Business Administration, and the Air Force Office of Special Investigations. It is being prosecuted by Assistant United States Attorney Jeremy J. Kelley.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

2:24-cr-00154-TOR

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Updated November 20, 2024