Phoenix Residents Among 4 Accused Of CARES Act Fraud

PHOENIX — Four people across the country, including two from Phoenix, have been charged with filing fraudulent Paycheck Protection Program loans since the start of the pandemic.

The U.S. Attorney’s Office made public a complaint Thursday against Celestine Coletta Strong, 44, of Phoenix; Jawuan Polk, 35, of Portland, Oregon; Patrick Earl Lewis, 45; and Ty’zhaun Marqui Lewis, 23, of Phoenix. All were hit with charges in connection with fraudulent PPP loan applications, including conspiracy, wire fraud and money laundering.

“PPP loans have been essential to the survival of small businesses during the pandemic,” U.S. Attorney Michael Bailey said in a statement. “It is reprehensible that some people would choose to take advantage of the program to fraudulently fill their own pockets rather than leaving that money for those who truly need it.”

According to the complaint, Strong, Polk, P. Lewis and T. Lewis schemed to fraudulently obtain loans from the CARES Act's PPP program, which was designed to help small businesses meet their payroll obligations during the pandemic.

The four submitted loan applications with falsified employee and wage information and fake bank statements to obtain 15 loans to the tune of more than $3.5 million, officials said. They were able to obtain approximately $450,000 before authorities closed in on their scheme, the complaint said. A Mercedes E400 has also been seized, as it was purchased with the fraudulent funds, the complaint said.

Bailey and Arizona Attorney General Mark Brnovich launched the COVID-19 Fraud Task Force in April 2020 to combat fraud schemed arising during the pandemic.

“Homeland Security Investigations, along with our government and private sector partners, are committed to protecting the American public against those who willingly attempt to defraud the government for financial gain,” Scott Brown, special agent in charge for the HSI Phoenix Office, said. “We will continue to use our broad legal authorities and longstanding partnerships to disrupt, investigate and bring to justice those who seek to exploit and benefit from the COVID-19 pandemic.”

A conviction for wire fraud carries a maximum penalty of twenty years of imprisonment, a $250,000 fine or both. A conviction for money laundering carries a maximum penalty of ten years of imprisonment, a $250,000 fine or both, according to the U.S. Department of Justice.