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Maryland resident Jacob Carter, 39, originally from Mount Vernon, was convicted along with three co-conspirators for wire fraud, conspiracy, and aggravated identity theft in connection with a scheme to file over 1,000 fraudulent loan applications during the COVID-19 pandemic, the US Attorney's Office for the Southern District of New York announced on Thursday, Feb. 27.
According to prosecutors, Carter personally received more than $1.7 million in kickbacks, which he flaunted with stacks of cash, expensive jewelry, and a leased Lamborghini.
From March through July 2020, Carter and his co-defendants Quadri Salahuddin, Anwar Salahuddin, and Crystal Ransom used the identities of more than 1,000 individuals to submit fraudulent Economic Injury Disaster Loan (EIDL) applications to the Small Business Administration, officials said.
Carter and his team falsely claimed that these individuals owned businesses with 10 or more employees in order to illegally secure millions in SBA advance payments. However, prosecutors say these businesses did not exist.
Once the fraudulent COVID relief funds were distributed, Carter and his co-conspirators took kickbacks from the recipients, profiting off the pandemic relief meant for struggling small businesses.
In addition to his 11-year prison sentence, Carter was also ordered to pay $7.7 million in restitution to the SBA and forfeit $1.72 million.
"Jacob Carter took advantage of a taxpayer-funded program intended to help small businesses in desperate need during the COVID-19 pandemic," said Acting US Attorney Matthew Podolsky, who continued, "Some small businesses that were eligible for and deserving of this money did not get it because funds ran out."
Co-defendant Crystal Ransom pleaded guilty and was sentenced to two years in prison in April 2024. Meanwhile, Quadri and Anwar Salahuddin are scheduled to be sentenced on March 26, 2025.
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