NJ Man Gets 30-Month Sentence for $1.3M COVID Relief Fraud

Jeremy Earley to serve prison time for laundering over $1 million from fraudulent PPP loans.

NEW JERSEY – Jeremy Earley, a 42-year-old resident of Egg Harbor Township, New Jersey, and Lilburn, Georgia, has been sentenced to 30 months in prison for laundering proceeds from fraudulently obtained Paycheck Protection Program (PPP) loans. The sentence was handed down by U.S. District Judge Karen M. Williams in federal court in Camden.

Earley pleaded guilty on June 1, 2023, to engaging in a monetary transaction in criminally derived property, following an extensive investigation by federal authorities. Documents and statements in court revealed that Earley's companies fraudulently received over $1.3 million in PPP loans in 2020 and 2021. These loans were intended to aid small businesses in retaining jobs and covering expenses during the COVID-19 pandemic.

The fraudulent applications, submitted by another individual on behalf of Earley's companies, falsely claimed the businesses had significant monthly payrolls and numerous employees. In reality, Earley’s businesses operated with no employees other than himself and paid minimal wages. After securing the loans, Earley wrote checks totaling nearly $400,000 to the individual who prepared the fraudulent applications, as compensation for her involvement. Additionally, Earley wired $85,000 from the loan proceeds despite warnings from federal agents not to spend the funds.

Alongside the prison term, Judge Williams ordered three years of supervised release for Earley. Rhonda Thomas, who admitted to her role in the fraud by pleading guilty to bank fraud conspiracy and money laundering, was previously sentenced to five years in prison.

The successful outcome of this case was due to the coordinated efforts of several federal agencies, including the Federal Deposit Insurance Corporation – Office of Inspector General, the Social Security Administration – Office of Inspector General, the FBI’s South Jersey Resident Agency, and the U.S. Department of Labor – Office of Inspector General.

Assistant U.S. Attorney Daniel A. Friedman and Attorney-In-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden represented the government in this case. U.S. Attorney Philip R. Sellinger has highlighted the sentencing as a significant step in combating fraud within federal relief programs.