9 accused of pandemic relief program fraud

Nine people in Arizona have been indicted on allegations they fraudulently obtained more than $23 million in government pandemic assistance.

Federal prosecutors allege Jason Coleman, 40, and Kimberly Coleman, 38, of Mesa conspired to prepare and submit about two-dozen fraudulent applications seeking $30 million in loans under the Paycheck Protection Program. They received $13 million from 10 applications, according to prosecutors, who say the couple submitted fake employment data and fictitious payroll.

PPP gave employers billions of dollars in low-interest loans that would be entirely forgiven if the money was used for specific purposes such as payroll costs. The program was created early in the COVID-19 pandemic as officials ordered many businesses to close and urged people to stay home.

Authorities alleged the Colemans used the money to buy four properties including a $3.8 million home, luxury vehicles, furniture and investments.

Jason and Kimberly Coleman pleaded not guilty on Wednesday to charges of conspiracy, bank fraud, wire fraud and transactional money laundering. A magistrate ordered both detained pending trial, ruling they are a flight risk and a danger.

A lawyer for Kimberly Coleman, Joshua Kolsrud, declined to comment. Jason Coleman’s attorney could not be reached but a receptionist said the firm doesn’t comment on cases.

Meanwhile, a grand jury also issued eight other indictments of seven people from the Phoenix area accused of conspiring to defraud the pandemic relief program.