A Louisiana man has been sentenced to seven years in federal prison for fraudulently obtaining loans through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Acting U.S. Attorney Michael M. Simpson announced that Ernest X. Taylor, Jr., 41, of Laplace, was sentenced on October 29, 2025, by U.S. District Judge Darrel James Papillion after pleading guilty to two counts of making false statements related to CARES Act loan applications.
The CARES Act was enacted on March 27, 2020, to provide economic relief during the COVID-19 pandemic. Among its provisions was the Paycheck Protection Program (PPP), which allowed small businesses to apply for forgivable loans backed by the U.S. Small Business Administration to help cover payroll and certain expenses.
According to court documents, Taylor submitted a PPP loan application on March 2, 2021, falsely stating he had not been convicted of a felony involving fraud or similar offenses within the past five years. In reality, Taylor had pleaded guilty in July 2016 in the Eastern District of Virginia to conspiracy to commit federal student loan fraud and mail fraud involving stolen identities. Based on his misrepresentations, Taylor received approximately $18,500 from this first loan application.
Taylor repeated these false statements when applying for a second PPP loan on April 21, 2021, receiving another $18,500.
In addition to his prison sentence of 84 months in the Bureau of Prisons, Taylor was ordered to serve five years of supervised release and pay a $100 mandatory special assessment fee.
Acting U.S. Attorney Simpson stated: “Acting U.S. Attorney Simpson praised the work of the United States Secret Service in investigating this matter.” The case was prosecuted by Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit.
For more information about the Department of Justice’s response to pandemic-related fraud or to report suspected cases, individuals can visit https://www.justice.gov/coronavirus or contact the National Center for Disaster Fraud Hotline at 866-720-5721 or use the online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
