Executive Summary
Laws and Precedent
Twelve individuals identified as members or associates of the Lakeland-based Hood Boys gang were charged Friday, September 5, 2025, with wire fraud in connection with a scheme to defraud the U.S. Small Business Administration through false Paycheck Protection Program (PPP) loan applications. U.S. Attorney Gregory W. Kehoe for the Middle District of Florida announced the unsealing of nine indictments in Tampa, alleging the defendants falsely claimed to operate businesses to secure COVID-19 relief funds.
Charges and Allegations
According to the indictments, the defendants devised a scheme to exploit the economic relief programs established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Each individual submitted false and fraudulent PPP loan applications, falsely representing that they operated legitimate businesses.
Each defendant received between $13,854 and $20,416 through these fraudulent applications. Instead of legitimate use or repayment, the funds were spent on personal expenses, including automobile payments, and purchases at liquor, clothing, and gun stores. The loans were subsequently either forgiven or defaulted on, resulting in an approximate total loss of $236,000 to the United States.
Investigation and Prosecution
The extensive investigation into this fraud scheme was conducted by a collaborative team of federal agencies. These included the Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS), and the Department of Labor – Office of Inspector General (DOL-OIG).
Assistant United States Attorneys Michael J. Buchanan and Jeff Chang will lead the prosecution of these cases. Their work is part of a broader federal effort to combat organized crime and financial fraud.
This case is a component of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF employs a prosecutor-led, intelligence-driven, multi-agency approach to identify, disrupt, and dismantle high-level criminal organizations that pose a threat to the United States.
Legal Ramifications
If convicted of wire fraud, each of the charged individuals faces a maximum penalty of 20 years in federal prison. The charges underscore the severe penalties for defrauding government programs designed to assist the public during crises.
It is important to note that an indictment is merely a formal charge, and every defendant is presumed innocent unless and until proven guilty in a court of law. The judicial process will determine the guilt or innocence of those accused.
The charges against the Lakeland-based gang members highlight the ongoing efforts by federal authorities to detect and prosecute fraud against pandemic relief programs. The Department of Justice encourages anyone with information about attempted COVID-19 fraud to report it to the National Center for Disaster Fraud (NCDF) Hotline.
