Last of Eight Defendants Sentenced in $7.7 Million Pandemic Fraud Scheme

DETROIT- Timothy Boyle, the last of eight defendants in a $7.7 million pandemic fraud scheme targeting the Small Business Administration and numerous state unemployment programs, was sentenced today, United States Attorney Jerome F. Gorgon Jr. announced.

Gorgon was joined in the announcement by Jennifer Runyan, Special Agent in Charge of the Federal Bureau of Investigation - Michigan Division, Megan Howell, Special Agent in Charge United States Department of Labor - Office of Inspector General, Great Lakes Region, and Acting Special Agent-in Charge, Michelle Blank, Small Business Administration-Office of Inspector General.

The eight defendants in this case all pleaded guilty to various wire fraud and identity theft offenses before Judge Judith E. Levy. The ringleader of the fraud scheme, DeAngelo Jackson-Portwood, 42, of Detroit, was sentenced to 61 months imprisonment. Anton Greenwood, 39, also of Detroit, and Adartha Tillman, 42, of Roseville, were sentenced to 42 and 40 months of incarceration, respectively. Maurice Brown-Portwood, 35, of Clinton Township received a 22 month sentence, and Taurean Davis, 44, of Detroit a sentence of 12 months imprisonment. Defendant Christopher Lindsay, 38, of Detroit received a sentence of three years of probation, as did Tyrone Boyle, 58, and his twin brother Timothy Boyle, both of Los Angeles, California.

The eight defendants will pay a total of $7,703,549 in restitution to the SBA and various state workforce agencies.

According to court records, between early 2020 and approximately May 2021, DeAngelo Jackson-Portwood orchestrated a scheme to defraud state workforce agencies by illegally obtaining millions of dollars in pandemic unemployment assistance funds. Jackson-Portwood, aided by his seven-codefendants, obtained the names, social security numbers, and other personal identifying information of numerous unsuspecting individuals. Without those individuals' knowledge or consent, Jackson-Portwood and his co-conspirators used their names to file over 1,000 claims for pandemic unemployment assistance across 17 states and territory of Guam. The co-conspirators obtained over $5.6 million on these bogus unemployment claims, with most of the losses being borne by the Michigan and California workforce agencies.

DeAngelo Jackson-Portwood's scheme also targeted pandemic loan assistance programs managed by the SBA. The co-conspirators filed over 575 fraudulent applications for Paycheck Protection Loans and Economic Injury Disaster Loans in the names of various businesses. The loan applications contained all manner of false statements. In some instances, the businesses did not exist. In others, the supposed proprietors of the businesses were in fact identity theft victims. Jackson-Portwood and his co-conspirators obtained approximately $2.1 million from their fraudulent applications targeting these pandemic loan assistance programs.

United States Attorney Gorgon stated, "Today's sentence concludes one of the largest pandemic fraud cases in our state. Jackson-Portwood fleeced the American taxpayer through a brazen fraud scheme. And we thank our partners at the FBI, Department of Labor, and Small Business Administration for uncovering this crime."

"The sentencing of the final defendant in this multimillion-dollar pandemic fraud scheme brings long-overdue justice to more than 900 victims whose lives were disrupted by greed and deception," said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. "Among those victims was a nurse working 12-plus hour shifts on the front lines during COVID-19, who then had to fight to clear her name after her identity was stolen. These defendants did not just steal money; they stole peace of mind from hardworking Americans during a national crisis. This outcome was made possible through the relentless work of members from the FBI Detroit Area Corruption Task Force, alongside our federal partners at the U.S. Department of Labor - OIG and the Small Business Administration - OIG. Our office will continue to pursue those who exploit national emergencies for personal gain and ensure they are held fully responsible under the law."

"The defendants stole from unemployment insurance programs that exist to help American workers during a once-in-a-generation global pandemic," said Anthony P. D'Esposito, Inspector General, U.S. Department of Labor. "That kind of fraud directly harms workers and taxpayers alike. Our team will relentlessly protect the integrity of these critical benefit programs and pursue accountability for anyone who tries to game the system for personal gain. I thank the U.S. Attorney's Office for the Eastern District of Michigan and our law-enforcement partners for their strong collaboration and commitment to justice."

"This sentencing serves as a reminder that fraud is not a victimless crime, and it has no place in SBA lending programs," said SBA-OIG Acting Special Agent-in Charge, Michelle Blank. "SBA-OIG will continue working with our law enforcement partners to investigate and pursue those who use stolen personal information to obtain disaster and relief funds."

This case was investigated by the Federal Bureau of Investigation and the United States Department of Labor, Office of Inspector General, and the Small Business Administration, Office of Inspector General. The case was prosecuted by Assistant United States Attorneys John K. Neal and Alyse Wu.