Maryland Accountant Sentenced to Three Years in Federal Prison for $24 Million COVID Relief Fraud

A Gaithersburg, Maryland accountant has been sentenced to federal prison for his role in a scheme that defrauded the government out of more than $24 million in COVID-19 relief funds. According to information from the U.S. Attorney’s Office for the District of Maryland, Harold Dotson, 54, received a three-year prison sentence and will be subject to three years of supervised release, including six months of home confinement. He was also ordered to pay over $24.8 million in restitution.

Dotson, the owner of H&M Tax Service LLC, which operated as H&M Financial Group, LLC, was found to have been involved in multiple wire fraud conspiracies between April 2020 and January 2022. During this period, he utilized his accounting expertise to prepare and submit numerous fraudulent applications for COVID-19 relief, specifically targeting Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL). These applications were for businesses that did not legitimately exist.

The fraudulent applications submitted by Dotson contained false information regarding employee numbers, payroll costs, and revenue for the purported businesses. He also fabricated Internal Revenue Service tax forms, which were then provided to co-conspirators, including Ahmed Sary of Brooklyn, Maryland, to support the false loan applications. In exchange for his services, Dotson received a percentage of the fraudulent loan proceeds, ranging from 2% to 27%. Court documents indicate he personally received over $828,000 from these illicit transactions.

The funds obtained through this scheme were largely used by Dotson for gambling. He gambled at casinos in Maryland, such as Maryland Live, the Horseshoe, and MGM National Harbor, and also took a gambling trip to Las Vegas. This sentencing follows a prior sentencing in June 2024, where co-conspirator Ahmed Sary received a seven-year federal prison sentence for his involvement in the conspiracy.

The investigation into Dotson’s activities was part of a broader effort by the U.S. Department of Justice’s District of Maryland Strike Force, one of five such units established nationwide to combat large-scale fraud related to pandemic relief funds. The CARES Act was enacted to provide essential financial aid to individuals and businesses impacted by the COVID-19 pandemic. The strike forces are designed to identify and prosecute criminal organizations and individuals who have stolen these vital relief funds.

Individuals with information regarding attempted fraud involving COVID-19 relief programs are encouraged to contact the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or to submit a complaint form online.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, District of Maryland

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