AUSTIN, Texas — A Georgetown couple has been sentenced to federal prison for their roles in a COVID-era Paycheck Protection Program (PPP) fraud scheme.
Michael Fullerton, 51, along with his wife, 48-year-old Tiffany Fullerton, were sentenced to a combined 32 years in federal prison for submitting six fraudulent PPP loan applications that exceeded $3.5 million.
The couple, along with two additional co-conspirators, used one existing and three dormant and expired business names to submit the six fraudulent PPP loan applications. Five of those applications were funded, allowing the defendants to receive approximately $3 million in PPP funds.
The funds were used in an attempt to start a business in Oklahoma consisting of a marijuana grow and dispensary, a bar and grill and an auto and boat repair shop. The funds were also used to buy a motor home, luxury watches, a boat and other personal expenditures.
Michael Fullerton pleaded guilty in March to 11 counts related to bank and wire fraud and aggravated identity theft. On April 29, Tiffany Fullerton was found guilty by a federal jury for one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering.
Michael Fullerton was sentenced to 286 months, or 23 years and eight months, in federal prison for all 11 counts, while Tiffany Fullerton was sentenced to 9 years in federal prison. The couple was also ordered to pay over $3 million in restitution.
“Michael and Tiffany Fullerton were convicted of defrauding our federal government and banks during the height of the COVID-19 pandemic,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “They took advantage of a national emergency to enrich themselves. This U.S. Attorney’s Office will not hesitate to hold fraudsters who abuse public programs accountable.”
The IRS Criminal Investigation and Treasury Inspector General for Tax Administration investigated the case.