9 in Arizona accused of defrauding pandemic relief program, obtaining over $23M

FILE - The Department of Justice seal is seen on a lectern ahead of a press conference announcing efforts against computer hacking and extortion at the Department of Justice in Washington, DC on November 28, 2018.

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The Department of Justice seal is seen on a lectern. File photo by Mandel Ngan/AFP via Getty Images.

PHOENIX - 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 (PPP). They received $13 million from 10 of their applications, according to prosecutors, who say the couple submitted fake employment data and fictitious payroll.

The PPP program 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 purchase four properties including a $3.8 million home, luxury vehicles, furniture and investments.

Jason and Kimberly Coleman pleaded not guilty on Dec. 15 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:

Willie Mitchell aka Blu Mitchell, 40, of Phoenix, Arizona.
Jason Nolte, 39, of Phoenix, Arizona.
Sean Swaringer, 56, of Peoria, Arizona.
Vanessa Swaringer, 54, of Peoria, Arizona.
Toni Richardson, 52, of Phoenix, Arizona.
Keenya Williams, 40, of Phoenix, Arizona.
Darrell Lieteau, 56, of Phoenix, Arizona.

"Indictments are only accusations, and a defendant is presumed innocent unless and until proven guilty," stated the U.S. Attorney's office.

The cases were investigated by the FBI with assistance from the Internal Revenue Service - Criminal Investigation, Homeland Security, and the Small Business Administration-Office of the Inspector General. The U.S. Attorney's Office says District of Arizona-Phoenix attorneys are handling the prosecutions.

To report COVID-19 fraud, contact the National Center for Disaster Fraud Hotline: 866-720-5721 or https://www.justice.gov/DisasterComplaintForm