DETROIT, MI — A Detroit tax preparer and certified public accountant has admitted in federal court that he took part in a $2.3 million fraud scheme built around pandemic relief loans. Prosecutors say the case centered on false applications for Paycheck Protection Program money and involved family members, friends and tax clients who believed they were getting help qualifying for aid.
Jawan Simpson, 37, entered his guilty plea Tuesday in federal court, according to the U.S. Attorney’s Office for the Eastern District of Michigan. He now faces up to 20 years in prison when he is sentenced. Federal officials say the case reflects an abuse of professional trust at a time when Congress had created emergency assistance for businesses struggling during the COVID-19 pandemic.
How the Paycheck Protection Program was supposed to work
The Paycheck Protection Program, or PPP, was launched in March 2020 as the pandemic upended the economy. It was designed to give emergency support to businesses facing sudden financial pressure, with loans backed by the Small Business Administration.
Businesses had to meet eligibility rules to receive the loans, and borrowers who wanted forgiveness later on had to satisfy additional requirements. Federal authorities say Simpson ignored those rules and instead helped prepare applications that were not truthful. The alleged scheme turned a program meant to keep workers on payroll into a vehicle for false claims on government funds.
Prosecutors say Simpson filed 111 false applications
According to the plea agreement, Simpson promised people he could help them qualify for PPP loans even when they did not actually meet the standards. He charged fees of about $2,000 to $3,000 for handling the cases, the U.S. Attorney’s Office said.
Federal authorities say he ultimately submitted 111 loan applications that included materially false information. Those filings contained fake tax returns and other misleading details used to support the requests. In total, prosecutors say the false applications led to more than $2.3 million in government money being disbursed.
Amtrak employees were among the people drawn into the scheme
The investigation involved the FBI’s Detroit Field Office and Amtrak’s Office of Inspector General, in part because some of the people recruited into the scheme were Amtrak employees, prosecutors said. Authorities have not publicly detailed the individual roles of those employees, but they said the connection helped bring federal investigators into the case.
The office of U.S. Attorney Jerome F. Gorgon Jr. said Simpson used his position as a preparer and accountant to gain trust before steering clients and acquaintances into the false loan filings. The case underscores how fraud can spread through personal and professional networks when people rely on someone they believe is qualified to handle sensitive financial paperwork.
A guilty plea now puts sentencing ahead
Simpson’s plea means the case will move toward sentencing rather than trial. Federal law allows a judge to impose a prison term of up to 20 years for the offense described by prosecutors. A sentence date was not included in the announcement.
Gorgon said Simpson “abused the trust placed in him as a tax preparer” and defrauded the American people of more than $2 million. That assessment reflects the government’s view that the scheme went beyond paperwork mistakes and amounted to a deliberate effort to siphon taxpayer-backed aid.
Why the case matters for pandemic aid oversight
PPP loans were one of the most widely used forms of emergency relief during the early months of COVID-19, and the program quickly became a target for fraud investigations across the country. Cases like this one show how officials continue to unwind schemes that took advantage of a fast-moving aid system built under intense pressure.
For ordinary taxpayers and honest business owners, the plea adds another example of how federal agencies are still pursuing pandemic-related fraud years after the program began. The case also highlights the role of preparers and accountants, who can shape whether applications are accurate, complete and truthful before they reach the government.
