Fayetteville Man Sentenced to Federal Prison for Car Loan, COVID Fraud
ATLANTA, Georgia – A 35-year-old Fayetteville man will spend two years and nine months in federal prison for fraudulently obtaining about $1.25 million in pandemic relief money and auto loans, the U.S. Attorney’s Office announced Tuesday.
U.S. District Judge Victoria M. Calvert sentenced 35-year-old Hugh A. Brown, Jr. of Fayetteville, Georgia, to the prison term, followed by five years of supervised release. She also ordered him to pay $1,244,243.81 in restitution to the Small Business Administration, the Internal Revenue Service and financial institutions.
Brown pleaded guilty on June 3, 2026, to bank fraud conspiracy and bank fraud.
How the schemes worked
According to U.S. Attorney Theodore S. Hertzberg, the indictment and other information presented in court, Brown applied for a Paycheck Protection Program loan in 2020. He submitted false payroll information and fake IRS tax forms to a federally insured bank and received a $162,500 loan.
In 2022, Brown fraudulently claimed Employee Retention Credits on behalf of his company. The credit is a refundable tax credit meant to encourage employers to keep paying workers during COVID-19. After he filed fraudulent tax returns, Brown received seven U.S. Treasury checks totaling $644,452.98 in those credits and others.
From at least February 2022 through February 2025, Brown also obtained bank and credit union loans worth nearly $450,000. Prosecutors said he used fake documents, misrepresented his employment and income, and gave fictitious vehicle details as loan collateral.
Officials respond
“This defendant shamelessly fleeced federal taxpayers and financial institutions over half a decade through various loan fraud schemes,” Hertzberg said. “My office will continue to prosecute and seek prison time for anyone who abuses government relief programs.”
Acting Assistant Special Agent in Charge Patrick M. Palmer of IRS Criminal Investigation’s Atlanta Field Office said: “Submitting false information to obtain federal pandemic relief funds, using fraudulent documents and deliberate misrepresentations to secure loans from banks and credit unions, are serious offenses that undermine the integrity of our financial institutions and erode public trust.”
Rodney M. Hopkins, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, said: “The defendant in this case stole money earmarked to help people in a time of economic uncertainty and used it to increase their bank account. The Postal Inspection Service’s message and mission are clear: You commit fraud, exploit our financial systems, and do harm to our communities, we will find you and bring you to justice.”
Agencies involved
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service and the U.S. Postal Inspection Service investigated the case. Homeland Security Investigations assisted.
