Last week, a federal grand jury announced a big indictment out of southern Florida.
Six people are accused of ripping off more than $34 million in COVID‑19 relief funds.
We’re talking fake paperwork, shady businesses, and a massive fraud network.
FRAUD BUST! Six individuals Indicted for COVID-19 Relief Fraud Scheme Totaling Over $34 Million
The defendants allegedly submitted fake applications with inflated employee numbers and payrolls, then laundered proceeds through cash withdrawals, blank checks, and payments to each… pic.twitter.com/9ypmIwIfcf
— Libs of TikTok (@libsoftiktok) June 6, 2025
What Happened
From May 2020 to November 2021, the six defendants (ages 37–69) submitted over 90 fake applications for government aid.
They didn’t just file bogus PPP forms—they also targeted EIDL disaster loans, Restaurant Revitalization Funds (RRF), and grants for shuttered venues (SVOG).
The fraud included inflated employee counts, fake payroll numbers, and made‑up revenues on IRS forms and bank statements.
- Prosecutors say they filed:
- About $29.1 million in PPP claims
- Around $1.2 million in RRF requests
- Nearly $3.8 million via SVOG
Once federal dollars hit their accounts, the defendants allegedly funneled cash and blank checks through businesses they controlled, making it hard to trace the money.
Who’s Involved & What They Face
The six accused are Elaine Escoe (40), Alfred Davis (51), Gino Jourdan (37), Cher Davis (53), Latoya Clark (39), and James McGhow (69).
They face charges including conspiracy to commit wire fraud and money laundering.
Each wire fraud charge brings up to 20 years in prison. Money laundering adds another 10 years.
Sentences will depend on sentencing guidelines and other legal factors.
Why This Matters
A federal task force, set up in May 2021, has charged more than 3,500 people in COVID‑fraud cases and recovered over $1.4 billion.
In 2024, civil and criminal actions recovered billions more through fines and settlements.
This isn’t an isolated incident.
Academic studies have warned that around 10–15% of the PPP’s roughly $800 billion was misused.
That suggests that fraud like this Florida case might be only part of a far bigger problem.
Even the U.S. House and researchers raised early concerns that speed—getting relief money fast—led to weak oversight.
A National Bureau of Economic Research paper in May 2020 warned about oversight gaps that opened the door to abuse.
Who’s Investigating
The Justice Department’s COVID‑19 Fraud Enforcement Task Force tackled this case, along with the FBI and Homeland Security Investigations. The U.S. Attorney’s Office for the Southern District of Florida is prosecuting.
This isn’t the first PPP fraud case in South Florida.
Earlier in April 2025, Freddy Urribarri and Mairilin Munoz were charged for inflating PPP applications to get about $438,000.
Another trio in Miami-Dade allegedly stole about $6.5 million by submitting more than 165 fake PPP requests.
What People Are Saying
Online reaction has been strong.
Questions are being raised about whether wealthy elites also took advantage—see earlier stories about celebrity PPP loans.
Why It Matters for You
Many Americans depend on honest, accountable government.
When federal aid gets stolen, it undercuts trust in institutions that are supposed to help.
Plus, when fraud slips through, real small businesses may find it harder to get help the next time.
The tens of billions in the PPP were meant to rescue businesses and jobs.
Instead, a chunk may have been funneled into crooked schemes—and the costs fall on honest people and taxpayers.
What Comes Next
Investigators say this may be just the “tip of the iceberg.”
The COVID‑19 Fraud Task Force continues to pore over data that covers millions of loans.
We could see bigger busts next—with more charges and recoveries to hit the headlines.
What happens next in court depends on evidence and legal strategy.
For now, this $34 million case reminds us why we need better oversight and accountability.
Strong families, strong communities—and good government—depend on it.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
