By: Richard L. Smith
U.S. Attorney Philip R. Sellinger announced that a NJ man admitted laundering the proceeds of fraudulently obtained Paycheck Protection Program loans.
Federal officials said Jeremy Earley, 41, of Egg Harbor Township NJ and also has an address in Lilburn GA, pleaded guilty on June 1, 2023, before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with one count of engaging in a monetary transaction in criminally derived property.
According to documents filed in this case and statements made in court:
In 2020 and 2021, two companies owned by Earley received loans totaling more than $1.3 million from the Paycheck Protection Program (PPP), a federal program that provided forgivable loans to small businesses for job retention and certain other expenses.
The loans were approved based on fraudulent applications submitted by conspirator Rhonda Thomas stating that the companies had dozens of employees and monthly payrolls of $145,000 and $382,400, respectively.
The applications also contained forged tax forms.
In fact, Earley’s businesses had no employees other than himself and paid minimal to no wages.
After receiving the PPP loan proceeds, Earley wrote checks totaling nearly $400,000 to Thomas to compensate her for her role in submitting the fraudulent loan applications.
The charge of money laundering carries a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.
Sentencing is scheduled for Oct. 13, 2023.
Rhonda Thomas previously pleaded guilty to bank fraud conspiracy and money laundering and was sentenced to five years in prison.