Philly Man Stole Nearly $1 Million In PPP Loans: Feds

PHILADELPHIA — A Philadelphia man is accused of stealing nearly $1 million from the federal Paycheck Protection Program, according to federal authorities.

Acting United States Attorney Jennifer Arbittier Williams said Devron Brown, 50, formerly of Philadelphia, has been federally charged with two counts of bank fraud and nine counts of money laundering in connection with an alleged scheme to unlawfully obtain and misuse loan proceeds offered through the federal Paycheck Protection Program (PPP).

According to the indictment, in June 2020 Brown fraudulently obtained about $937,500 in PPP loan proceeds, pursuant to a PPP loan application that contained false representations regarding his alleged construction business, Just Us Construction Inc.

The indictment alleges Brown made multiple false characterizations about Just Us Construction, including the number of employees, the wages paid to them, the payroll taxes paid on those wages, and the intended use of the PPP loan proceeds.

Brown is also alleged to have used those funds for personal and unauthorized purchases, including a new residential property in Florida, a motorcycle, an all-terrain vehicle, a luxury automobile, and diamond jewelry.

Authorities said Brown also allegedly caused a second fraudulent PPP loan application to be submitted for approximately the same amount in early 2021, but that application was denied.

"Paycheck Protection Program funds are intended to help American small-businesses continue paying their employees, even if revenues have dropped dramatically due to the pandemic," Williams said. "Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. As alleged, Brown fraudulently obtained nearly $1 million in funds that could have helped struggling businesses and individuals."

If convicted of all charges, Brown faces a maximum possible sentence of 150 years of imprisonment, three years of supervised release, a $4,250,000 fine, restitution, and an $1,100 special assessment.