Indiana Medical Student Pleads Guilty to COVID Relief Fraud Scheme

Jonathan Andrew Jones, 31, of Lafayette, Indiana, has filed a petition to plead guilty to two counts of wire fraud connected to a scheme to defraud the federal government of over $325,000 in COVID-19 relief funds. The charges are part of the Department of Justice's initiative to eliminate fraud within federal benefit programs.

According to court documents, Jones was a medical student during the relevant period and owned a purported tutoring business called Med School Side Hustle. Between January 2021 and December 2022, he submitted multiple fraudulent applications for Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), both designed to provide financial relief during the pandemic.

Jones falsely claimed that his business generated significant revenue and had payroll costs, despite having no customers, employees, or revenue. To support these claims, he submitted fabricated invoices for tutoring services that were never provided. This resulted in him receiving approximately $197,000 from the Small Business Administration.

In addition, Jones submitted three PPP loan applications claiming he was the sole proprietor of a business with monthly payroll costs exceeding $8,000. Two of these applications were approved, disbursing over $38,000. He also used the identities of five friends and family members to apply for additional PPP loans, totaling around $69,629, which he transferred into his personal accounts after deposit.

Overall, Jones submitted 11 fraudulent applications, obtaining over $326,500 in federal relief funds. He used the money for personal expenses, including gambling and purchasing cryptocurrency. The investigation was conducted by the U.S. Secret Service, Small Business Administration Office of Inspector General, Department of Transportation Office of Inspector General, and the Pandemic Response Accountability Committee.

U.S. Attorney Wheeler expressed gratitude to the prosecutors and emphasized the Department of Justice's commitment to prosecuting fraud against federal programs. The case underscores ongoing efforts by the newly established National Fraud Enforcement Division to investigate and prosecute such crimes, supporting the broader government initiative to eliminate fraud, waste, and abuse in federal assistance programs.