A Detroit resident has been sentenced to 24 months in federal prison for his role in a fraud conspiracy involving Paycheck Protection Program (PPP) loans. Matthew Lloyd Parker, 37, will also face four years of supervised release and is required to pay $14.5 million in restitution to the U.S. Small Business Administration, as announced by Acting United States Attorney Troy Rivetti.
The sentence was handed down by United States District Judge W. Scott Hardy. Parker’s fraudulent activities took place between March 2020 and August 2021, during which he conspired with others to defraud lenders of over $14.5 million through false PPP loan applications meant for COVID-19 pandemic relief. This case marks the largest known instance of PPP fraud in the Western District of Pennsylvania.
Parker, a licensed Certified Public Accountant (CPA), recruited numerous small businesses from Pittsburgh and Detroit to submit falsified loan applications under their names. The Small Business Administration approved more than 200 such applications, resulting in loans totaling approximately $14.5 million being disbursed to various businesses. The prosecution argued that Parker’s expertise as a CPA enabled him to effectively falsify the documents, securing substantial loans for others and earning around $1.5 million in loan processing fees for himself.
Assistant United States Attorney Gregory C. Melucci led the prosecution on behalf of the government. In addition, Acting United States Attorney Rivetti praised the efforts of the Federal Bureau of Investigation and the United States Postal Inspection Service for their roles in investigating and successfully prosecuting Parker.
