Three DeSoto County residents have been taken into custody on accusations that they conspired to fraudulently obtain federal loans intended to protect employees of endangered businesses during the COVID-19 pandemic.
According to court documents, Olive Branch residents Zipora Hudson, Montreal Hudson, and Deandre Jones engaged in a money laundering scheme using funds from the Payroll Protection Program (PPP) of the U.S. Small Business Administration.
Though details are sparse, the trio is charged with conspiracy to commit wire fraud and wire fraud for their involvement in the fraudulent application of PPP loans. The defendants also face charges for conspiracy to commit money laundering and money laundering by participating in wire transfers involving the proceeds of the fraud scheme.
If convicted, they face a maximum penalty of 30 years for the conspiracy and wire fraud violations and 20 years for the money laundering charges.
The U.S. Attorney’s Office for the Northern District of Mississippi is prosecuting the case. The case was investigated by the Internal Revenue Service Criminal Investigation Division.
