Dayton business owner charged with COVID-19 relief fraud

Stock photo of scales and a gavel. (risanapong detraphiphat/Moment/Getty Images)

Credit: risanapong detraphiphat/Moment/Getty Images

Credit: risanapong detraphiphat/Moment/Getty Images

Stock photo of scales and a gavel. (risanapong detraphiphat/Moment/Getty Images)

A Dayton business owner appeared in federal court on charges related to two coronavirus relief Paycheck Protection Programs loans totaling $2.5 million.

Nadine Consuelo Jackson, 31, of Dayton is charged with bank fraud and making a false statement to a bank within the jurisdiction of a federal agency.

Consuelo Jackson reportedly applied for two forgivable loans, one for $1.3 million and the second for $1.2 million, available for businesses suffering economic effects because of the coronavirus pandemic as part of the Coronavirus Aid, Relief and Economic Security Act.

Jackson claimed to have 73 employees working at a Dayton-based private investigation and security service, Extract LLC. Reports indicate there were few or no extra employees working for the business. She reportedly submitted false tax documents in support of her fraud, according to a release from the U.S. Department of Justice.

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The loans initially were wired to her account, but they were flagged. The bank recalled one loan and the government seized the other.

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Court documents say Consuelo Jackson also applied for and received more than $46,000 in Economic Injury Disaster loan funding. Consuelo Jackson reportedly stated Extract LLC had eight employees in her loan application. She then wired the funds in five transactions to another account. A warrant was obtained to seize that money as well.

Four people named on the applications told agents they did not work for the company and three of the people said they had never heard of Extract LLC, the release stated.

Bank fraud is a crime punishable by up to 30 years in prison. Making a false statement within the jurisdiction of a federal agency carries a potential maximum sentence of five years in prison.

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