Georgia Man Sentenced for $1.25 Million Fraud Scheme

Hugh A. Brown Jr. received a federal prison term lasting 33 months, followed by five years of supervised release. U.S. District Judge Victoria M. Calvert also ordered him to pay $1,244,243.81 to federal agencies and financial institutions, including the Small Business Administration and the IRS. Brown admitted guilt on June 3, 2026, to conspiring to commit bank fraud and to bank fraud.

Prosecutors said Brown began the scheme in 2020 by submitting false payroll figures and fabricated IRS forms to obtain a $162,500 Paycheck Protection Program loan from a federally insured bank.

In 2022, he submitted tax forms falsely seeking Employee Retention Credit funds for his business. The filings resulted in seven U.S. Treasury checks totaling $644,452.98 in credits and other pandemic-related relief, prosecutors said.

From at least February 2022 through February 2025, Brown also secured nearly $450,000 in loans from banks and credit unions using false documents, misrepresentations about his income and invented vehicle details for collateral.

Investigators from the IRS's criminal-investigation division, Homeland Security Investigations, the U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives handled the case. Federal officials said the prosecution was intended to hold accountable those who misuse relief funds and financial institutions.