U.S. Attorney Duane A. Evans announced that Clifton C. James, 50, of New Orleans, pled guilty on January 15, 2025, before U.S. District Judge Jane Triche-Milazzo to making false statements, theft of government funds, and money laundering related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
He also pled guilty to false tax filing with the Internal Revenue Service.
On March 27, 2020, the president of the United States signed into law the CARES Act, which provided emergency assistance administered by the United States Small Business Administration (SBA) to small business owners affected by the Coronavirus (COVID-19) pandemic.
The two primary sources of funding for small businesses were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL) program.
According to the charging documents, or about April 30, 2020, James, on behalf of a business he owned, made false statements to an approved lender to obtain a $86,800 PPP loan.
On or about July 13, 2020, James stole $149,900 from the SBA by using a false application in the name of Crescent City Tax Services, LLC.
James then committed money laundering by using these ill-gotten funds to buy an automobile from a dealership in California. Lastly, James filed a false document with the Internal Revenue Service wherein he claimed to have earned $1.00 in a 2019 tax return.
At his April 23, 2025 sentencing, James faces up to five years in prison for each charge of making false statements and for filing a false tax document. He also faces up to 10 years in prison for each charge of money laundering and the theft of government funds.
Each charge, individually, also carries a penalty of up to a $250,000 fine, up to three years of supervised release and a $100 mandatory special assessment fee.
