Erica McMillian of Robeson County was sentenced on April 10 to 10 months in prison and three years of supervised release for submitting a false application to the Small Business Administration’s Economic Injury Disaster Loan program.
The sentencing highlights ongoing efforts by federal authorities to address fraudulent misuse of taxpayer funds distributed through Covid-19 relief programs. The Department of Justice recently announced the creation of the National Fraud Enforcement Division, which is dedicated to investigating and prosecuting those who commit fraud involving government benefit programs. These efforts support President Trump’s Task Force to Eliminate Fraud, led by Vice President J.D. Vance.
According to court documents, McMillian submitted a fraudulent loan application for a non-existent business in Robeson County, falsely claiming information about employees and revenue. She also provided fabricated tax forms and bank statements. After her application was approved, $150,000 was deposited into an account she controlled.
This case is part of a wider investigation into schemes targeting both the Economic Injury Disaster Loan and Paycheck Protection Programs. Authorities said that this scheme resulted in more than $542,000 in fraudulent Covid relief loans being disbursed. Others convicted include former Robeson County Sheriff’s Office deputy Ricky McMillian, his wife Erica McMillian, and their sons Dwayne and Derian McMillian.
W. Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, announced the sentencing after U.S. District Judge Louise W. Flanagan issued the prison term. The FBI and IRS Criminal Investigation division conducted the investigation with Assistant U.S. Attorney Ethan Ontjes prosecuting.
