Robeson woman gets 10 months in prison in $542K COVID loan fraud

A Robeson County woman will spend 10 months in prison, followed by three years of supervised release, for her role in a scheme federal authorities described as a $542,000 COVID loan fraud.

Erica McMillian faced that sentence from US District Judge Louise Flanagan, according to a news release Friday from US Attorney Ellis Boyle.

McMillian, her husband, and their two adult sons each pleaded guilty to charges connected to the scheme, Boyle’s office reported in March.

“We are proud to prosecute this case as a part of the President’s Task Force to Eliminate Fraud,” Boyle said in Friday’s news release. “This office will continue to hold accountable anyone who defrauds any of our taxpayer funded programs. This Covid fraudster has learned the lesson – Cheaters. Never. Win.”

The US Department of Justice announced Tuesday a National Fraud Enforcement Division. “The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars,” according to Boyle’s news release.  DOJ’s new division supports the president’s Task Force to Eliminate Fraud, chaired by Vice President JD Vance.

“Inmate McMillian submitted a fraudulent [Economic Injury Disaster Loan] loan application for a fictitious business located in Robeson County,” according to Boyle’s news release. “To obtain the $150,000 loan, McMillian made false representations concerning the number of employees and gross revenues of the business. She also submitted false and fraudulent tax forms and bank statements. Following approval of the loan application, funds were disbursed into a personal account controlled by Inmate McMillian.”

McMillian’s case “is part of a broader investigation” involving her sons and husband Ricky McMillian, a former Robeson County sheriff’s deputy. The scheme led to the disbursement of $542,288 in fraudulent loan proceeds.

“Although the COVID loans may have stopped, our government continues to dole out billions in other forms of loans, subsidies, and programs,” Boyle said in a March news release. “This office will continue to hold accountable anyone who defrauds any of our taxpayer funded programs.”

The McMillians submitted five EIDL and PPP loan applications for four different businesses located in Robeson County, Boyle’s office reported. The family and a co-conspirator presented false information about the number of employees and gross revenues for the businesses. They also submitted false and fraudulent tax forms and bank statements.

The federal government approved each loan application and disbursed funds into “personal accounts controlled by the McMillians,” according to the news release.

“Robeson woman gets 10 months in prison in $542K COVID loan fraud” was originally published on www.carolinajournal.com.