
<p><strong>Atlanta, GA</strong> – In a stark reminder of the pervasive fraud that plagued COVID-19 relief programs, two Georgia men, Johnny Narcisse and his cousin Johnson Dieujuste, have been sentenced to federal prison for their roles in a sophisticated scheme that defrauded the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program of more than $2 million. The case highlights the vulnerability of emergency relief funds and the ongoing efforts of law enforcement to bring perpetrators of pandemic-related fraud to justice.</p>



<p>This article delves into the details of Narcisse and Dieujuste&#8217;s fraudulent activities, their convictions, and the broader context of COVID-19 relief fraud. It also explores the role of various government agencies in investigating and prosecuting such crimes, and provides information on how the public can report suspected fraud.</p>



<h2 class="wp-block-heading">The Scheme: Exploiting Vulnerabilities in COVID-19 Relief Programs</h2>



<p>The COVID-19 pandemic triggered an unprecedented economic crisis, prompting the U.S. government to launch massive relief programs aimed at mitigating the <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="1133">financial</a> fallout. The PPP and EIDL programs were central to this effort, designed to provide forgivable loans to small businesses struggling to stay afloat and cover essential expenses like payroll, rent, and utilities.</p>



<p>However, the speed and scale at which these programs were rolled out created opportunities for unscrupulous individuals to exploit vulnerabilities in the system. Johnny Narcisse and Johnson Dieujuste were among those who seized this opportunity, devising a scheme that ultimately defrauded taxpayers of over $2 million.</p>



<h2 class="wp-block-heading">How the Fraud Unfolded: A Detailed Look at Narcisse and Dieujuste&#8217;s Tactics</h2>



<p>According to court documents and statements made by Acting U.S. Attorney Richard S. Moultrie, Jr., the investigation into Narcisse began in July 2021 when federal agents, initially investigating a Florida resident for suspected tax crimes, obtained a search warrant for Narcisse&#8217;s Georgia home, computer, and cellular phone. This search yielded a trove of evidence revealing a complex conspiracy between Narcisse and Dieujuste.</p>



<p>The cousins&#8217; scheme involved recruiting small business owners and then filing fraudulent applications for PPP and EIDL loans on their behalf. The process was deceptively simple:</p>



<ol class="wp-block-list">
<li><strong>Recruitment:</strong> Narcisse and Dieujuste would approach small business owners, promising to help them secure COVID-19 relief funds.</li>



<li><strong>Information Gathering:</strong> They would collect the business owners&#8217; names, business names, and Employer Identification Numbers (EINs).</li>



<li><strong>Fabrication:</strong> The rest of the information required for the <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/loans/" title="loan" data-wpil-keyword-link="linked" data-wpil-monitor-id="1132">loan</a> applications was simply invented. Narcisse and Dieujuste fabricated details about the businesses&#8217; revenue, expenses, and number of employees to make them appear eligible for the loans.</li>



<li><strong>Submission:</strong> The fraudulent applications were then submitted to the Small Business Administration (SBA) and participating lenders.</li>



<li><strong>Kickbacks:</strong> If a loan was approved and disbursed, the borrowers would kick back a percentage of the proceeds to Narcisse and/or Dieujuste as payment for their &#8220;services.&#8221;</li>
</ol>



<p>This scheme was replicated dozens of times, resulting in over $2 million in fraudulent loans being disbursed.</p>



<h2 class="wp-block-heading">Beyond the Conspiracy: Individual Fraudulent Loan Applications</h2>



<p>In addition to their scheme to defraud the PPP and EIDL programs on behalf of others, Narcisse and Dieujuste also filed fraudulent loan applications for themselves. These individual applications, which were uncovered during the investigation, added to the total loss amount and were factored into their sentencing and restitution orders.</p>



<h2 class="wp-block-heading">The Investigation: Unraveling the Fraudulent Web</h2>



<p>The investigation into Narcisse and Dieujuste&#8217;s activities was a collaborative effort led by the U.S. Treasury Inspector General for Tax Administration (TIGTA) and the Small Business Administration&#8217;s Office of Inspector General (SBA-OIG). These agencies played a crucial role in identifying the fraudulent loan applications, tracing the flow of funds, and gathering the evidence necessary to build a strong case against the defendants.</p>



<p>The initial search warrant executed at Narcisse&#8217;s home proved to be a turning point in the investigation. The digital evidence found on his computer and phone provided a detailed record of their communications, the fraudulent loan applications, and the financial transactions associated with the scheme.</p>



<h2 class="wp-block-heading">Legal Proceedings: Guilty Pleas and Sentencing</h2>



<p>Faced with the overwhelming evidence against them, both Narcisse and Dieujuste pleaded guilty to one count each of conspiracy to commit wire fraud. This guilty plea, a federal felony, carry a maximum penalty of 20 years, as well as a fine of not more than the greater of $250,000 or twice the gross gain or loss from the offense.</p>



<h2 class="wp-block-heading">Johnny Narcisse&#8217;s Sentencing:</h2>



<p>On October 21, 2024, U.S. District Judge Eleanor L. Ross sentenced Johnny Narcisse, 46, of Atlanta, Georgia, to two years and four months in prison, followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,000,332, reflecting the total losses attributed to his involvement in the scheme.</p>



<h2 class="wp-block-heading">Johnson Dieujuste&#8217;s Sentencing:</h2>



<p>Johnson Dieujuste, 37, of Loganville, Georgia, received his sentence on January 8, 2025. Judge Ross sentenced him to two years and eight months in prison, also followed by three years of supervised release. Dieujuste was ordered to pay restitution in the amount of $2,081,559.</p>



<h2 class="wp-block-heading">The Role of the COVID-19 Fraud Enforcement Task Force</h2>



<p>The prosecution of Narcisse and Dieujuste is part of a broader effort to combat pandemic-related fraud. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force, a multi-agency initiative aimed at marshaling resources and expertise to investigate and prosecute individuals and organizations involved in COVID-19 relief fraud.</p>



<p>The Task Force has been instrumental in:</p>



<ul class="wp-block-list">
<li><strong>Enhancing investigative and prosecutorial efforts:</strong> By bringing together resources and expertise from various agencies, the Task Force has strengthened the government&#8217;s ability to identify and prosecute complex fraud schemes.</li>



<li><strong>Improving coordination:</strong> The Task Force has fostered greater collaboration between federal agencies, state and local law enforcement, and private sector partners.</li>



<li><strong>Sharing information and best practices:</strong> The Task Force facilitates the exchange of information and intelligence, allowing agencies to learn from past enforcement efforts and adapt their strategies accordingly.</li>



<li><strong>Preventing future fraud:</strong> By analyzing patterns and trends in pandemic-related fraud, the Task Force is working to identify vulnerabilities in relief programs and develop strategies to prevent future exploitation.</li>
</ul>



<h2 class="wp-block-heading">The Broader Context: The Scope of COVID-19 Relief Fraud</h2>



<p>The case of Narcisse and Dieujuste is just one example of the widespread fraud that has plagued COVID-19 relief programs. While the vast majority of the trillions of dollars in aid were distributed legitimately, a significant portion was lost to fraud, waste, and abuse.</p>



<h2 class="wp-block-heading">The Scope of the Problem:</h2>



<p>Estimates of the total amount of fraudulent COVID-19 relief funds vary widely, but it is undoubtedly in the billions, if not tens of billions, of dollars. The SBA-OIG, in a 2023 report, estimated that as much as $200 billion may have been lost to fraud in the PPP and EIDL programs alone.</p>



<h2 class="wp-block-heading">Types of Fraud:</h2>



<p>COVID-19 relief fraud has taken many forms, including:</p>



<ul class="wp-block-list">
<li><strong>Identity theft:</strong> Fraudsters used stolen identities to apply for loans in the names of unsuspecting individuals.</li>



<li><strong>Business identity theft:</strong> Similar to identity theft, but involving the use of stolen business information.</li>



<li><strong>Loan stacking:</strong> Applicants applied for multiple loans from different lenders, often using the same fabricated information.</li>



<li><strong>Inflated payroll or revenue:</strong> Businesses exaggerated their payroll or revenue figures to qualify for larger loans.</li>



<li><strong>Shell companies:</strong> Fraudsters created fake businesses with no legitimate operations to apply for loans.</li>



<li><strong>Misuse of funds:</strong> Some businesses received loans but used the funds for purposes other than those allowed under the programs.</li>
</ul>



<h2 class="wp-block-heading">Consequences of Fraud:</h2>



<p>The consequences of COVID-19 relief fraud are far-reaching:</p>



<ul class="wp-block-list">
<li><strong>Financial losses to taxpayers:</strong> Fraudulent loans represent a direct loss to taxpayers, who ultimately bear the cost of these programs.</li>



<li><strong>Undermining public trust:</strong> Fraud erodes public trust in government programs and institutions.</li>



<li><strong>Distorting the economy:</strong> Fraudulent loans can distort the economy by providing an unfair advantage to those who engaged in illicit activities.</li>



<li><strong>Diverting resources from legitimate recipients:</strong> Fraudulent claims can deplete the funds available for legitimate businesses and individuals in need.</li>
</ul>



<h2 class="wp-block-heading">Reporting Suspected COVID-19 Fraud</h2>



<p>The Department of Justice encourages anyone with information about allegations of attempted fraud involving COVID-19 to report it. You can do so by:</p>



<ul class="wp-block-list">
<li><strong>Calling the National Center for Disaster Fraud (NCDF) Hotline:</strong> 866-720-5721</li>



<li><strong>Submitting a complaint online:</strong> <a href="https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form" target="_blank" rel="noreferrer noopener">https://www.justice.gov/&#8230;complaint-form</a></li>
</ul>



<p><strong>Conclusion</strong></p>



<h2 class="wp-block-heading">The sentencing of Johnny Narcisse and Johnson Dieujuste serves as a powerful reminder of the ongoing fight against COVID-19 relief fraud. Their case underscores the importance of vigilance, robust investigative efforts, and inter-agency collaboration in protecting taxpayer funds and ensuring the integrity of government programs. As the COVID-19 Fraud Enforcement Task Force continues its work, it is expected that more cases of pandemic-related fraud will be uncovered and prosecuted, sending a clear message that those who seek to exploit public emergencies for personal gain will be held accountable. The public plays a vital role in this effort by reporting suspected fraud and helping to safeguard the integrity of vital relief programs.</h2>

Tag Archives: pandemic fraud
Gernesia Williams Sentenced to Prison for $110,000 COVID-19 Relief Loan Fraud, Spent Proceeds on Jewelry and Destination Wedding

<p>The U.S. Attorney&#8217;s Office has delivered a stern message against the misuse of pandemic relief funds, highlighting a recent case where a Louisiana woman was sentenced to federal prison for fraudulently spending COVID-19 relief loan money. Gernesia Williams, a 47-year-old resident of Baton Rouge, will serve 13 months in federal prison following her conviction for the knowing conversion of government funds. This case serves as a stark reminder of the government&#8217;s commitment to prosecuting individuals who exploited programs designed to aid struggling businesses during the pandemic.</p>



<h2 class="wp-block-heading">Details of the Case: A Lavish Lifestyle Funded by Deception</h2>



<p>U.S. District Judge Brian A. Jackson handed down the sentence, which includes not only the prison term but also three years of supervised release and a hefty restitution order of $110,030.47. This amount reflects the extent of Williams&#8217;s misuse of funds obtained through the U.S. Small Business Administration&#8217;s (SBA) COVID-19 Economic Injury Disaster <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/loans/" title="Loan" data-wpil-keyword-link="linked" data-wpil-monitor-id="1131">Loan</a> (EIDL) program.</p>



<p>According to court documents and admissions made during her guilty plea, Williams applied for and received EIDL funds between April 2020 and January 2023. As a condition of receiving these loans, applicants were required to pledge that the proceeds would be used solely as working capital to alleviate economic hardships caused directly by the COVID-19 pandemic. These funds were intended to help businesses cover essential expenses such as payroll, rent, and utilities, ensuring their survival during unprecedented economic turmoil.</p>



<p>However, Williams flagrantly disregarded these terms. Instead of utilizing the funds to support any legitimate business need, she embarked on a spending spree that included personal indulgences far removed from the intended purpose of the EIDL program. Court records reveal that at least $110,030.47 of the loan proceeds were misspent. The most egregious examples of her misuse of these funds include:</p>



<ul class="wp-block-list">
<li><strong>Over $30,000 on Jewelry:</strong> A significant portion of the fraudulently obtained funds was spent on jewelry, a clear indication of personal enrichment rather than business support.</li>



<li><strong>Over $20,000 on a Destination Wedding in Florida:</strong> Williams used over $20,000 of the EIDL funds to finance a lavish destination wedding in Florida, a blatant example of the misuse of taxpayer money intended for economic relief.</li>
</ul>



<p>These expenditures are not only a betrayal of the public trust but also a violation of federal law. The EIDL program was designed to be a lifeline for businesses struggling to stay afloat during a global crisis, and Williams&#8217;s actions directly undermined its purpose.</p>



<h2 class="wp-block-heading">The Government&#8217;s Response: A Commitment to Justice and Accountability</h2>



<p>The case against Gernesia Williams was the result of a collaborative investigation by the Federal Bureau of Investigation (FBI) and the U.S. Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorney Ben Wallace led the prosecution, underscoring the seriousness with which the federal government views pandemic relief fraud.</p>



<p>U.S. Attorney Ronald C. Gathe, Jr. has been vocal about the Department of Justice&#8217;s commitment to prosecuting those who seek to profit illegally from the pandemic. This case is just one example of the ongoing efforts to identify, investigate, and hold accountable individuals who have defrauded pandemic relief programs.</p>



<p>&#8220;The COVID-19 pandemic caused immense hardship for millions of Americans,&#8221; stated a representative from the U.S. Attorney&#8217;s Office. &#8220;Programs like the EIDL were created to provide a safety net for businesses struggling to survive. Those who chose to exploit these programs for personal gain will be held accountable to the fullest extent of the law.&#8221;</p>



<h2 class="wp-block-heading">The Broader Context: The Rampant Problem of Pandemic Relief Fraud</h2>



<p>The case of Gernesia Williams is not an isolated incident. Since the onset of the COVID-19 pandemic and the subsequent rollout of various federal relief programs, there has been a surge in cases of fraud. The sheer volume of funds distributed, coupled with the urgent need to get money into the hands of those who needed it quickly, created an environment ripe for exploitation.</p>



<p>The SBA&#8217;s Office of Inspector General has estimated that billions of dollars in pandemic relief funds were potentially lost to fraud. This includes not only the EIDL program but also the Paycheck Protection Program (PPP) and other initiatives.</p>



<p>The methods used by fraudsters vary widely, from inflating the number of employees on payroll to fabricating entire businesses. In some cases, individuals have used stolen identities to apply for loans, while others have simply misrepresented their business needs, as seen in the Williams case.</p>



<h2 class="wp-block-heading">The Role of the National Center for Disaster Fraud (NCDF)</h2>



<p>To combat the rising tide of pandemic-related fraud, the Department of Justice established the National Center for Disaster Fraud (NCDF). This center serves as a centralized hub for reporting and investigating fraud related to natural disasters, public health emergencies, and other crises, including the COVID-19 pandemic.</p>



<p>The NCDF plays a crucial role in:</p>



<ul class="wp-block-list">
<li><strong>Collecting Complaints:</strong> The NCDF provides a mechanism for individuals to report suspected fraud through a dedicated hotline (866-720-5721) and a web complaint form (<a href="https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form" target="_blank" rel="noreferrer noopener">www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form</a>).</li>



<li><strong>Coordinating Investigations:</strong> The NCDF works with various law enforcement agencies, including the FBI, the Secret Service, and inspectors general from different federal agencies, to ensure that complaints are properly investigated.</li>



<li><strong>Raising Public Awareness:</strong> The NCDF engages in public outreach to educate individuals and businesses about the risks of fraud and how to report it.</li>
</ul>



<h2 class="wp-block-heading">How to Report Suspected Pandemic Fraud</h2>



<p>The government relies heavily on tips from the public to identify and prosecute fraud. If you have information about potential pandemic fraud, including the misuse of EIDL or PPP funds, you are urged to report it to the NCDF.</p>



<h3 class="wp-block-heading">Reporting Options:</h3>



<ul class="wp-block-list">
<li><strong>NCDF Hotline:</strong> 866-720-5721</li>



<li><strong>NCDF Web Complaint Form:</strong> <a href="https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form" target="_blank" rel="noreferrer noopener">www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form</a></li>
</ul>



<p>When reporting suspected fraud, provide as much detail as possible, including:</p>



<ul class="wp-block-list">
<li>The names of individuals or businesses involved</li>



<li>The type of loan or program involved (e.g., EIDL, PPP)</li>



<li>Specific details about the alleged fraud (e.g., how the funds were misused)</li>



<li>Any supporting documentation you may have</li>
</ul>



<h2 class="wp-block-heading">The Consequences of Pandemic Relief Fraud: A Stern Warning</h2>



<p>The sentencing of Gernesia Williams sends a clear message that pandemic relief fraud will not be tolerated. The consequences of such actions are severe and can include:</p>



<ul class="wp-block-list">
<li><strong>Prison Sentences:</strong> Individuals convicted of fraud can face lengthy prison terms, as demonstrated in this case.</li>



<li><strong>Hefty Fines and Restitution:</strong> In addition to imprisonment, individuals may be ordered to pay substantial fines and repay the fraudulently obtained funds, as Williams was ordered to pay back over $110,000.</li>



<li><strong>Supervised Release:</strong> Following a prison sentence, individuals may be subject to a period of supervised release, during which they must adhere to strict conditions.</li>



<li><strong>Criminal Record:</strong> A conviction for fraud will result in a criminal record, which can have long-lasting consequences for employment, housing, and other aspects of life.</li>
</ul>



<h2 class="wp-block-heading">Conclusion: Protecting the Integrity of Relief Programs</h2>



<p>The case of Gernesia Williams serves as a cautionary tale, highlighting the importance of integrity and accountability in the administration of government relief programs. The government&#8217;s commitment to pursuing and prosecuting those who engage in pandemic relief fraud is unwavering.</p>



<p>As the nation continues to recover from the economic impact of the COVID-19 pandemic, it is crucial to protect the integrity of relief programs and ensure that funds reach those who truly need them. By reporting suspected fraud and holding individuals accountable for their actions, we can help safeguard taxpayer dollars and ensure that these vital programs serve their intended purpose: to provide a lifeline to businesses and individuals during times of crisis. The message is clear: those who seek to exploit these programs for personal gain will face the full force of the law.</p>