A federal grand jury in Spokane, Washington, has returned an indictment charging Taylor Jashaun Kendall, 26, of Spokane, and Michael Tyriq Allen, 26, of Gainesville with a dozen counts of fraud as part of a scheme to obtain $300,000 in COVID-19 relief funding.
On March 27, 2020, then-President Trump 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.
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 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 federal government in relation to their participation in the scheme.
The fraud charges against Kendall and Allen carry a maximum sentence of up to 30 years in federal prison.