Shreveport Gang Members Sentenced for Exploiting CARES Act in Fraud Scheme

Shreveport Gang Members Sentenced for CARES Act Fraud

In a striking turn of events, the city of Shreveport is making headlines for a criminal case that has revealed how some individuals turned a government assistance program meant to help businesses during a crisis into their personal piggy bank. On November 21, U.S. Attorney Brandon B. Brown announced that 24 members and associates of a local gang known as “Step or Die” have been sentenced for their involvement in an elaborate fraud scheme targeting the CARES Act.

The Scheme Unfolds

The CARES Act, a crucial piece of legislation aimed at providing relief during the COVID-19 pandemic, allocated up to $349 billion in forgivable loans to help small businesses stay afloat. Unfortunately, some folks saw this as an opportunity to cash in. It all began when authorities discovered that the Shreveport gang had applied for 31 loans worth over $600,000. They didn’t stop there – they attempted to secure an additional 41 loans amounting to a whopping $2.2 million.

These fraudulent applications claimed the gang members owned various businesses, including everything from freight and towing services to daycare centers, and even pig and cattle farms. However, investigations revealed that many had either never owned a business or had exaggerated their revenue to qualify for government aid.

Accountability for Actions

At a press conference held in July 2023, U.S. Attorney Brown vowed to hold these individuals accountable for attempting to defraud the government. He stated, “We stood before you at a press conference 16 months ago announcing these charges and vowing to hold these 24 individuals accountable for defrauding and attempting to defraud the government out of over $2,000,000.”

But this isn’t just about fraudulent loans. According to Brown, many of these defendants are connected to gang activity and serious violent crimes, such as murder and attempted murder. While federal authorities don’t typically handle local murder cases, they are determined to use any available law to combat violent crime and drug issues in the community.

Justice Served

Fast forward to now, and varying sentences have been handed down based on individual culpability and prior criminal records. Some of the sentences include:

• Sirdell L. McCullough (Age 26): $20,832 from PPP
• Roderguiz Henry (Age 27): $20,260 from PPP
• Johntrell Crutchfield (Age 24): $20,832 from PPP
• Deanthony D. Johnson (Age 24): $20,575 from PPP and $8,000 from EIDL
• Deaaundrakous Latrea Hagger (Age 25): $20,833 from PPP
• Nico J. Stewart (Age 36): $4,000 from EIDL
• Timothy D. Vasher (Age 22): $20,832 from PPP
• Destane Glass (Age 23): $20,832 from PPP
• Xavien R. Beasley (Age 24): $10,000 from EIDL
• Quinterrius D. Brown (Age 23): $30,800 from EIDL – Not funded
• Dewonnie Brown (Age 55): Multiple applications totaling over $100,000

From proud claims of fake businesses to the mighty fall that follows, this case serves as a stern reminder about the consequences of fraud. The U.S. Attorney’s Office has reiterated its commitment to tackle two key priorities: prosecuting those who steal from the government and addressing violence in the community.

As the dust settles, residents of Shreveport are left to ponder the lengths to which some will go when tempted by easy money. Hopefully, this case will deter others from following in the same path and remind everyone that honesty truly is the best policy.