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NEWPORT NEWS, VA A previously convicted felon was sentenced today to 51 months in prison for engaging in a COVID-19 related loan fraud scheme with losses of nearly $200,000. During a global pandemic, the defendant took advantage of aid programs intended to provide critical relief for hardworking members of our communities impacted by the COVID-19 outbreak, said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. Our Office will continue to hold accountable individuals who exploit and disadvantage others in order to unlawfully enrich and advantage themselves. Exploiting programs meant to help businesses in need during a global pandemic is appalling. Today, Cherry learned his actions have repercussions, said Kelly R. Jackson, IRS-CI Special Agent in Charge. We will continue to prioritize COVID-19 fraud investigations on those who essentially rob struggling businesses of the assistance they truly need.
Repeat fraudster sentenced for COVID-19 loan fraud scheme
Published Saturday, Mar. 13, 2021, 8:39 am
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A previously convicted felon was sentenced this week to 51 months in prison for engaging in a COVID-19 related loan fraud scheme with losses of nearly $200,000.
According to court documents, Joseph Cherry, 40, of Norfolk, engaged in a scheme to obtain COVID-related loan benefits through the Small Business Administration (SBA) and affiliated lenders.
“During a global pandemic, the defendant took advantage of aid programs intended to provide critical relief for hardworking members of our communities impacted by the COVID-19 outbreak,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office will continue