Fraud Crackdown: U.S. Citizen Pleads Guilty to Defrauding Taxpayers of More Than $1 Million

Defendant used fraudulent Paycheck Protection Program (PPP) loans to purchase cryptocurrency and conceal illicit proceeds

WASHINGTON -- The United States Department of Homeland Security (DHS) U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Phoenix announced that Jamar J. Johnson, a U.S. citizen, pleaded guilty April 20, 2026, to his role in a scheme to defraud the United States of $1,047,824 in taxpayer funds through the U.S. Small Business Administration's (SBA) Paycheck Protection Program (PPP).

In 2020, Johnson submitted fraudulent PPP loan applications on behalf of a company he claimed operated an amateur basketball league. Based on these misrepresentations, the SBA approved and dispersed four PPP loans totaling more than $1 million.

Jamar J. Johnson

Instead of using the funds for legitimate business expenses, Johnson used the fraudulently obtained money for person gain, including purchasing cryptocurrency and transferring the funds to foreign markets in an effort to conceal the illicit proceeds.

Johnson's actions not only resulted in significant financial losses to the U.S. government, but also deprived legitimate small businesses of access to critical relief funds during a time of national crisis. Fraud of this nature weakens the effectiveness of federal assistant programs and places an additional burden on taxpayers who ultimately bear the cost of these crimes.

"Jamar J. Johnson exploited a critical pandemic relief program for personal gain, stealing more than $1 million meant to support American small businesses when they needed it most," said Acting Assistant Secretary Lauren Bis. "This guilty plea sends a clear message: those who defraud the American people and attempt to hide their crimes will be identified, investigated, and held accountable. DHS remains committed to protecting taxpayer-funded programs and ensuring justice for those who abuse them."

The PPP was established under the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency financial assistance to small businesses suffering economic hardship during the COVID-19 pandemic. PPP loans were intended to be used for payroll and other eligible business expenses. Fraudulent applications and misuse of PPP funds undermine the integrity of the program and divert critical resources away from legitimate businesses.

HSI continues to prioritize the investigation of financial crimes that threaten the integrity of U.S. government programs and exploit emergency relief efforts. These investigations often involve complex financial transactions, including the use of cryptocurrency and international transfers to disguise proceeds of illegal activity.

HSI is the principal investigative arm of DHS responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI's workforce of more than 10,000 employees consists of special agents, criminal analysts, and mission support personnel assigned to more than 250 offices through the United States and around the world.

Members of the public are encouraged to report suspected criminal activity to HSI by calling 1-877-4-HSI-TIP or by submitting information online through the HSI Tip Form.

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