Army soldiers in Virginia obtained fraudulent COVID-19 relief loans from SBA

Two active duty U.S. Army soldiers pled guilty to obtaining fraudulent COVID-19 relief loans while stationed at Fort Gregg-Adams in Prince George County.

A third soldier has also been charged for similar offenses, according to the Department of Justice.

Maj. Eduwell Jenkins, 42, pled guilty Tuesday to defrauding the Small Business Administration by obtaining a fraudulent loan through the Paycheck Protection Program.

Sgt. Malaysia Stubbs, 30, pled guilty on Nov. 5 to obtaining a fraudulent PPP loan.

A federal grand jury also returned an eight-count indictment this week charging Sgt. First Class Crispin Antonio Abad, 42, with obtaining two fraudulent PPP loans while on active duty.

According to their plea documents, Jenkins and Stubbs filed for fraudulent PPP loans in 2021. Though they were active-duty soldiers, Jenkins and Stubbs falsely represented to the SBA that they each had jobs separate from their military employment that generated more than $100,000 in annual income.

To substantiate this false income, Jenkins and Stubbs generated fabricated Internal Revenue Service tax return forms for the PPP applications. Jenkins and Stubbs never submitted these falsified tax return forms to the IRS as part of legitimate tax filings. Based on their false submittals, Jenkins and Stubbs each received more than $20,000 in government-backed PPP loans.

Separately, an indictment alleges that, while stationed at Fort Gregg-Adams in 2021, Abad was responsible for, among other things, enforcing the Army’s honor code and standards of conduct.  In April 2021, Abad allegedly applied for two fraudulent PPP loans, claiming exactly $100,000 in income in 2020 from a business named “Granny’s Delight.” Abad allegedly represented that his business was to sell his grandmother’s pies.

To substantiate this false income, Abad allegedly generated a fabricated IRS tax return form, submitting this form to the SBA as supporting documentation for the PPP applications. According to the indictment, Abad never submitted this falsified IRS tax return form to the IRS as part of legitimate tax filings. Abad received more than $41,000 in PPP loans.

Abad then allegedly used fraudulently obtained funds for various luxury and recreational spending, including purchases at the Fort Gregg-Adams golf course, Ace Adventure Resort in West Virginia, Victoria’s Secret, Sunglass Hut and the Virginia ABC Store. Additionally, Abad allegedly purchased jewelry at Reeds Jeweler and withdrew hundreds of dollars in fraud proceeds at the MGM Casino in National Harbor, Md.

Jenkins is scheduled to be sentenced on March 25, 2025. Stubbs is scheduled to be sentenced on March 20, 2025. Jenkins and Stubbs face a maximum penalty of five years in prison.

If convicted, Abad faces a maximum penalty of 20 years in prison.