DOJ: Delaware Pastor Sentenced to 18 Months in Prison for Committing Over $500,000 in Pandemic Relief Fraud and Tax Fraud

• Pittman fraudulently obtained $544,764 in pandemic relief payouts using false information and fake documents.
• He failed to report over $250,000 in income, resulting in almost $90,000 of underpayment to the IRS.

Brian Pittman, a Delaware pastor, was sentenced to 18 months imprisonment, three years of supervised release, a $200 special assessment, and $606,101 in restitution for wire fraud and filing a false tax return. He used the names and information of friends and family to apply for multiple pandemic relief loans backed by the SBA, resulting in payouts of $363,600.

Pittman had friends and family transfer him the majority of the loan money—over $250,000—which he kept for himself and failed to report on his tax returns, causing almost $90,000 of underpayment to the IRS. He also obtained an additional $181,164 in pandemic relief from the SBA based on fraudulent applications filed in his own name and businesses he controlled.

• $544,764 Total pandemic relief payouts based on fraud
• $363,600 EIDL payouts to friends and family
• $250,000 Loan money transferred to Pittman

• Review SBA pandemic relief loan applications for false information and fake documents as used by Pittman.
• Check for unreported income exceeding $250,000 in tax filings related to pandemic relief funds.
• Monitor applications involving the Economic Injury Disaster Loan (“EIDL”) program for similar fraud typologies.

This case highlights the importance of thorough due diligence and verification processes for pandemic relief programs, especially those backed by the SBA. Fraudulent applications using false information and fake documents can result in significant financial losses and underpayment to tax authorities. Compliance officers must be vigilant in identifying red flags, such as unreported income and suspicious transfers, to prevent similar abuses and ensure the integrity of relief programs.