Texas Man Sentenced for Pandemic Fraud Conspiracy

PORTLAND, Maine: A Katy, Texas man pleaded guilty and was sentenced today in U.S. District Court in Portland for wire fraud and conspiracy to commit wire fraud.

Chief U.S. District Judge Lance E. Walker sentenced Currin Caridine, 39, to 41 months in prison to be followed by three years supervised release. He was also ordered to pay $476,420 in restitution to the U.S. Small Business Administration (SBA).

According to court records, from June 2020 through September 2021, Caridine conspired with others to file false and fraudulent applications for Economic Injury Disaster Loans (EIDLs) and Paycheck Protection Program (PPP) loans. Caridine filed four fraudulent PPP loan applications for himself and received over $80,000. Caridine claimed to be the sole proprietor of non-existent businesses in the entertainment and management consulting industries. Caridine filed false tax returns with his applications. Caridine, who lived in Illinois at the time, filed false EIDL and PPP applications for others, including residents of Maine and New Hampshire. Caridine worked with a co-conspirator and New Hampshire resident, Tyree Jones, to recruit others interested in receiving loans. Jones collected applicants' personal information, which Caridine used to file fraudulent applications. Jones and Caridine received kickbacks from the loan proceeds they obtained for others. The fraudulent applications resulted in the issuance of approximately $475,000 in EIDL and PPP loans.

Tyree Jones was previously sentenced to two years in prison for his role in the conspiracy.

IRS Criminal Investigation investigated the case.

Coronavirus Aid Relief and Economic Security (CARES) Act: The Coronavirus Aid Relief and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It was designed to provide emergency financial assistance to the millions of Americans who suffered economic effects resulting from the COVID-19 pandemic. The CARES Act made EIDL funding available to business owners negatively affected by the COVID19 pandemic. EIDL proceeds were funded by the SBA and disbursed by the U.S. Treasury. EIDLs could only be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the COVID19 disaster not occurred.

Paycheck Protection Program: The PPP was a COVID-19 pandemic relief program administered by the SBA that provided forgivable loans to small businesses for job retention and certain other expenses. The PPP permitted participating third-party lenders to approve and disburse SBA-backed PPP loans to cover payroll, fixed debts, utilities, rent/mortgage, accounts payable and other bills incurred by qualifying businesses during, and resulting from, the COVID-19 pandemic. PPP loans were fully guaranteed by the SBA.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

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