Eleven Defendants Indicted in $2.3 Million COVID Relief Fraud Scheme:

Eleven Defendants Indicted in $2.3 Million COVID Relief Fraud Scheme: The Net Keeps Widening

Posted: January 19, 2026 - 9:30 AM | INVESTIGATION

Federal prosecutors announced that eleven individuals have been indicted for their roles in a scheme to defraud the SBA by submitting false and fraudulent EIDL and PPP applications. The defendants, including Sherell Breus, Jessie Perlado, Candice Harper, and others, face up to 20 years in federal prison on each count.

    $2,294,734.50 IN FORFEITURE - The U.S. government is seeking to recover every penny of the stolen funds. This isn't just criminal prosecution - they want the money back.

    

The Fraud Window: April 2020 to June 2021

According to the indictment, these eleven defendants submitted their fraudulent applications during the height of the pandemic response, between April 2020 and June 2021. That was the window when the SBA was so overwhelmed they were essentially rubber-stamping anything that came through the door.

The defendants allegedly:

• Created fake businesses with no actual operations

• Fabricated payroll records and tax documents

• Made false statements about employee counts and wages

• Split the proceeds among conspirators once approved

YEARS PER COUNT - Each defendant faces decades in prison. Federal sentencing guidelines mean most will serve at least 85% of whatever they get.

    

Eleven People, One Network

This case demonstrates how these fraud schemes worked. It wasn't random individuals independently deciding to commit fraud. It was coordinated networks where each person played a role. Some recruited participants. Some created documents. Some served as application specialists. Some moved the money.

When the feds catch one, they work their way through the whole organization. That's why these cases keep growing. First one arrest, then three, then eleven. Everyone talks eventually. Everyone wants a deal. And the evidence pile keeps growing.

If you were part of a similar network and thought the investigation stopped when your co-conspirators got caught: think again. The dominos are still falling.