Nearly $1 million in COVID loans paid for PA man’s diamond rings and Lexus, feds say

Nearly $1 million in unlawfully obtained COVID-19 loans were used to fund a man’s new Florida residential property, a Lexus, a couple diamond rings and more, federal officials say.

Devron Brown, 50, formerly of Philadelphia, has since pleaded guilty in the Eastern District of Pennsylvania in connection to the Paycheck Protection Program (PPP) scam, according to a Dec. 14 news release.

According to court documents, Brown is accused of submitting a “false and misleading PPP loan application” for $935,875 in relief money. In the application, officials say he falsely reported paying payroll taxes for 25 Pennsylvania employees through JUST US — a business purportedly operating as a construction company — in the second quarter of 2020. In reality, officials say JUST US paid no payroll taxes during that time period.

The bank approved a loan for about $937,500, officials say, and he received the money in June 2020.

The defense attorney representing Brown did not immediately respond to a McClatchy News’ request for comment.

Officials say he used that money in the following ways between June and November 2020:

• About $250,000 used to purchase a residential property in Deltona, Florida
• Nearly $43,000 funded the purchase of a 2017 Lexus GS 320 in Annapolis, Maryland
• Approximately $50,000 used to buy a 2018 Ford F350 XLT pickup truck in Florida
• About $55,000 was wire transferred to a construction equipment supplier for an excavator
• Almost $7,000 helped buy a “14 karat white gold, three stone diamond engagement ring and a 14 karat white gold, diamond wedding band”
• Approximately $19,000 used for an all-terrain vehicle and a motorcycle

Following those purchases, Brown lied in a second PPP loan application, according to court documents. In February 2021, officials say he sought another $935,875, though the bank denied his request.

Brown was then indicted in June 2021 on 11 felony counts, including bank fraud, attempted bank fraud, and money laundering, according to the news release.

“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,” U.S. Attorney Jennifer Williams said in a statement. “Here, the defendant fraudulently obtained nearly $1 million in funds that could have helped struggling businesses and individuals, and instead spent the money on indulgences for himself.”

Court records show his sentencing is scheduled for April 14, 2022.

What is the PPP?

“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 in the news release.

PPP loans were backed by the Small Business Administration to help “businesses keep their workforce employed during the COVID-19 crisis.” The program ended on May 31.

In Pennsylvania, 179,088 PPP loans totaling $9,958,345,781 net dollars were approved in 2021 through the program end date. In total, 11,823,594 PPP loans totaling $799,832,866,520 were granted.

This story was originally published December 15, 2021 at 1:45 PM with the headline "Nearly $1 million in COVID loans paid for PA man’s diamond rings and Lexus, feds say."