Four Sentenced in $11.5 Million COVID-19 Relief Fraud Scheme

The United States Attorney’s Office for the Middle District of Pennsylvania has announced the sentencing of four individuals involved in a large-scale conspiracy to defraud federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. These programs were established to offer financial assistance to businesses during the COVID-19 pandemic. The total amount defrauded from these programs by the defendants exceeded $11.5 million, making this one of the most significant PPP and EIDL fraud cases prosecuted in the Middle District of Pennsylvania.

The final defendant, Joshua White, 44, formerly of Yoe, Pennsylvania, received a sentence of 96 months in prison on February 10, 2026, for bank fraud. In addition to his prison sentence, he was ordered to pay over $2.3 million in restitution to victims and will serve five years of supervised release following his incarceration. Joshua White was the last of four defendants to be sentenced in this extensive scheme. Earlier sentencings included his father, Creed White, 67, formerly of Freeland, Maryland, who received a 10-year prison sentence in October 2025 for conspiracy to commit wire fraud and money laundering. Also sentenced in October 2025 was Joseph Bailey, 54, formerly of York, Pennsylvania, an employee of Creed White, who received 46 months in prison for conspiracy. The fourth defendant, Kester Murray, 40, of Emigsville, Pennsylvania, another employee of Creed White, was sentenced in December 2025 to two years of probation for his involvement in the scheme. All four defendants ultimately pleaded guilty to their respective charges.

The investigation into this fraud initially centered on Creed White, who owned Aluminum Alloys Manufacturing, an aluminum smelting and processing business located in Yoe, Pennsylvania. Following the onset of the pandemic in early 2020, Aluminum Alloys received disaster loans. Subsequently, between the spring of 2020 and the fall of 2022, Creed White submitted approximately 120 fraudulent applications for PPP and EIDL funds. These applications were filed on behalf of 18 other businesses that he owned or controlled, none of which had any actual operations or employees. Approximately 40 of these applications were approved, resulting in the disbursement of over $11.5 million in loan proceeds into bank accounts controlled by Creed White. He then transferred these funds to other accounts and used them for personal expenses and enrichment. To facilitate this elaborate scheme, Creed White falsely represented individuals as owners of these dormant businesses and used their identities on the fraudulent applications.

Creed White enlisted the help of Joshua White to obtain personal identifying information from third parties. Joseph Bailey and Kester Murray were instrumental in creating fabricated business, banking, and tax records necessary to support the fraudulent loan applications submitted to banks and lending institutions. Joshua White also independently submitted a fraudulent PPP loan application for a dormant business he owned, securing $175,000, which he reportedly spent on unauthorized purchases and a trip to Las Vegas.

Law enforcement agencies involved in the investigation, including agents from the Internal Revenue Service-Criminal Investigations, the Small Business Administration-Office of Inspector General, and the United States Treasury-Office of Inspector General, emphasized the importance of holding individuals accountable for defrauding pandemic relief programs. They stated that these sentencings serve as a deterrent to others who might consider similar criminal activities, reinforcing the commitment of law enforcement to bring such offenders to justice. Officials also highlighted that manipulating these vital relief programs diverts critical resources away from legitimate small businesses and undermines public trust, underscoring their dedication to protecting taxpayer dollars and maintaining the integrity of federal programs.

The case was prosecuted by Assistant United States Attorney Christian T. Haugsby.

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

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