Irving Man Indicted in $11 Million PPP Fraud Scheme Involving 561 Loans
DALLAS - An Irving man and a Chicago woman have been indicted on federal charges accusing them of orchestrating a multiyear scheme that used hundreds of fraudulent Paycheck Protection Program applications to obtain more than $11 million in pandemic-era business loans.
Latrina Dorsey, 50, of Chicago, and Dushawn Nelson, 50, a resident of Irving in the Las Colinas area, were each indicted Aug. 19 on one count of conspiracy to commit wire fraud and four counts of wire fraud, according to the U.S. Attorney's Office for the Northern District of Texas.
Federal prosecutors allege Dorsey and Nelson submitted or helped submit hundreds of fraudulent PPP applications between June 2020 and September 2022.
The Paycheck Protection Program was administered by the U.S. Small Business Administration to provide forgivable loans to eligible small businesses affected by the COVID-19 pandemic.
According to the indictment, Dorsey prepared applications containing fabricated financial information and fictitious IRS Schedule C forms. Prosecutors say many of the documents claimed applicants had earned $100,000 in gross income in 2019 regardless of their actual earnings.
Nelson allegedly recruited and referred applicants to Dorsey in exchange for kickbacks before eventually submitting loan applications himself.
The applications were processed through companies including Blueacorn, Womply, Bluevine and Kabbage and routed to SBA-approved lenders such as Celtic Bank and Cross River Bank, according to prosecutors.
Authorities say lenders ultimately funded approximately 561 loans worth a combined $11,049,548. Many of the individual loans were for approximately $20,832.
The money was deposited into accounts controlled by the applicants, who then allegedly paid Dorsey, Nelson or other co-conspirators kickbacks ranging from $2,000 to $5,000. Prosecutors say the payments were frequently made in cash or electronically.
In some instances, Dorsey allegedly transferred portions of the PPP proceeds to Nelson or other people involved in the scheme.
If convicted, Dorsey and Nelson each face up to 20 years in federal prison, a fine of up to $250,000 and up to three years of supervised release.
The U.S. Railroad Retirement Board's Office of Inspector General and FBI's Chicago Field Office investigated the case. Assistant U.S. Attorney Chad E. Meacham is prosecuting.
