A Durham man stole $2.9 million in funds intended for businesses struggling during the pandemic.
Reynold Mullen, 48, faces seven years in prison, the Department of Justice announced Tuesday.
Mullen pleaded guilty in April 2023 to charges related to mortgage and COVID-19 relief fund fraud.
The U.S. Attorney's Office said Mullen fraudulently obtained more than $1.3 million in mortgage loans. Mullen also obtained more than $1.6 million in Economic Injury Disaster Loan and Paycheck Protection proceeds.
According to the U.S. Attorney's Office, Mullen used fake credit reports and fake bank statements to buy multiple properties and pay for plastic surgery.
According to the U.S. Attorney's Office, between 2019 and 2021, Maren and his girlfriend, Tiffany Russell, used false credit reports and bank statements to obtain four mortgages totaling $1.374 million. The properties were located in Miami, Rocky Mount and Nags Head.
Between March 2020 and July 2021, they also submitted false applications for COVID-19 relief funds, obtaining more than $1.6 million in taxpayer money, which authorities say was used for six properties and for Maren's plastic surgery.
“This white-collar fraud against American taxpayers is shocking,” U.S. Attorney Michael Easley wrote. “We live in a generous country that lends a helping hand to those in need.
“When defendants like Mr. Mullen use that generosity to buy a beach house or have plastic surgery, we will fight to see that all of that money is put back into the public purse.”
Assistant Special Agent in Charge Brian Thomas of the Internal Revenue Service's Criminal Investigation Division (IRS CI) echoed Easley's sentiments.
“Not only did Mullen use falsified credit reports and false bank statements to obtain mortgage loans, but he also took advantage of assistance programs intended to provide critical relief to hardworking community members affected by the COVID-19 pandemic by fraudulently obtaining pandemic response loans,” Thomas wrote. “IRS CI, along with our law enforcement partners, remains vigilant in identifying, investigating, and recommending prosecution of individuals who knowingly attempt to deceive the U.S. Treasury and blatantly disregard the victims of their schemes.”
In May 2022, Russell was sentenced to five years and three months in prison. He also served five years of probation for his role in the scheme.
Their case is one of many.
The Associated Press estimates that more than $280 billion in COVID relief funds may have been stolen.