Maryland State Wire

Jemel Lyles, a 43-year-old resident of Washington, DC, has admitted guilt to charges of wire fraud and aggravated identity theft in a federal court. According to his guilty plea, Lyles was involved in fraudulent activities concerning six CARES Act loans.

The announcement was made by Kelly O. Hayes, U.S. Attorney for the District of Maryland, alongside Acting Special Agent in Charge Amanda M. Koldjeski from the FBI's Baltimore Field Office.

The CARES Act was enacted in March 2020 to provide financial assistance during the COVID-19 pandemic. This included forgivable loans for small businesses through programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL).

Lyles' fraudulent activities occurred between April 2020 and February 2021 while he was on supervised release following a prior federal felony fraud conviction. He obtained six PPP loans by inflating employee numbers and payroll amounts in applications, submitting false documents as evidence.

Due to his previous conviction, any business with Lyles' ownership interest was not eligible for PPP funds. However, he obscured his involvement or control over these funds to bypass this restriction. In some applications, he did not disclose his interest in companies like Green Capital Construction and Landscape, LLC and JSL Investments LLC. In others, he used another individual's identity to apply for loans deposited into accounts where he had signatory authority.

Lyles misused the obtained funds on personal expenses such as a home gym and jewelry. The total amount defrauded was approximately $281,900.

For wire fraud alone, Lyles faces up to 20 years imprisonment followed by five years of supervised release. For aggravated identity theft, there is a mandatory two-year prison sentence consecutive to other sentences. Additionally, there is potential for an extra two years for violating supervised release terms.

Sentencing is set for September 10 before U.S. District Judge Deborah L. Boardman.

This case falls under one of five strike forces established by the U.S Department of Justice aimed at addressing COVID-19-related frauds involving large-scale schemes by criminal organizations or transnational actors.

U.S Attorney Hayes commended the FBI's efforts in investigating this case while acknowledging Assistant U.S Attorney Joseph L Wenner's prosecution work along with contributions from Paralegal Specialist Joanna B.N Huber and Maryland COVID-19 Strike Force members.

For more details about ongoing efforts against pandemic-related frauds visit justice.gov/coronavirus or report suspected cases via NCDF Hotline at 866-720-5721 or online through their complaint form portal available at justice.gov/disaster-fraud/ncdf-disaster-complaint-form

Further information regarding Maryland’s U.S Attorney Office can be accessed through their website www.justice.gov/usao-md including resources on reporting frauds within community outreach initiatives provided therein too