Edward McCorkle, a 37-year-old resident of Baltimore County, Maryland, has pleaded guilty to one count of wire fraud for submitting fraudulent applications for CARES Act loans. The announcement was made by U.S. Attorney Kelly O. Hayes for the District of Maryland, along with Special Agent in Charge William J. DelBagno of the FBI’s Baltimore Field Office and Chief Robert O. McCullough of the Baltimore County Police Department.
The CARES Act, enacted in March 2020, was designed to help Americans deal with the economic impact of the COVID-19 pandemic by providing emergency financial assistance to small businesses through programs such as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL). These programs were intended to help businesses retain jobs and meet their financial obligations.
According to court documents, McCorkle engaged in a scheme from May 2020 through February 2021 to defraud financial institutions—including Cross River Bank and the Small Business Administration—by submitting false loan applications for businesses he claimed to operate under both PPP and EIDL programs.
McCorkle obtained $523,700 through fraudulent means while attempting to secure a total of $946,500. He used these funds for unauthorized purposes such as personal expenses, cash withdrawals, and purchasing and rehabilitating real estate in Baltimore City.
On May 26, 2020, McCorkle and a co-conspirator submitted a fraudulent PPP loan application for Real Transitions LLC—a business controlled by McCorkle—to Cross River Bank. The application falsely stated that the company employed 15 workers with an average monthly payroll of $98,600 in 2019. Supporting documentation included fabricated IRS Form 941 tax returns claiming employment and tax withholding that did not occur.
Based on these misrepresentations, Cross River Bank disbursed approximately $246,500 into an account controlled by McCorkle. He agreed to pay his co-conspirator a kickback equal to 20 percent of the loan amount—$49,300—after receiving the funds.
In addition to this kickback payment, McCorkle used the loan proceeds on real estate purchases and rehabilitation projects in Baltimore City as well as credit card payments and significant cash withdrawals for personal benefit. By October 1 following several large withdrawals throughout June to September, only about $3,400 remained in the account.
McCorkle also admitted obtaining over $227,000 in EIDL funds for another purported business and using those funds for unauthorized expenses such as mortgage payments on his primary residence and purchases at restaurants and retail stores.
He faces up to 20 years in federal prison followed by up to three years of supervised release. Sentencing is scheduled before U.S. District Judge Richard D. Bennett on January 27, 2026.
The District of Maryland Strike Force is part of five national strike forces created by the Department of Justice to investigate COVID-19 relief fraud schemes involving CARES Act funds. These teams focus on identifying large-scale pandemic relief fraud committed by criminal organizations across state lines through interagency collaboration led by prosecutors and data analysts.
For more information about pandemic-related fraud or how to report suspected cases:
– Visit https://www.justice.gov/coronavirus
– Call the National Center for Disaster Fraud Hotline at 866-720-5721
– Submit complaints online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
U.S. Attorney Hayes acknowledged the efforts of the FBI and Baltimore County Police Department during this investigation and thanked Assistant U.S. Attorneys Paul A. Riley and Paul E. Budlow as well as Paralegal Specialists Juliette Jarman and Joanna B.N. Huber for their assistance.
More information about resources available through the Maryland U.S. Attorney’s Office can be found at https://www.justice.gov/usao-md or https://www.justice.gov/usao-md/community-outreach
“Kelly O. Hayes, U.S. Attorney for the District of Maryland,” said: “U.S. Attorney Hayes commended the FBI and BCPD for their work in the investigation.” “Ms. Hayes also thanked Assistant U.S. Attorneys Paul A. Riley and Paul E. Budlow, who are prosecuting the case, and recognized Paralegal Specialists Juliette Jarman and Joanna B.N. Huber, for their valuable assistance.”
