Announcement of Fraud Arrests Includes Man from Lakes Region

An announcement in Missouri Monday focuses on the results of a summer enforcement of fraud charges.

Federal authorities announce the results of a sweeping summer enforcement effort targeting suspected fraud involving federal COVID-era small-business loan programs, with cases involving more than 160 criminal defendants and approximately $245 million in intended taxpayer losses. 
The announcement was made in Kansas City on Monday and included Vice-President JD Vance along with other members of the Trump Administration and Missouri Republican U.S. Senator Eric Schmitt. 

The U.S. Attorney’s Office for the Western District of Missouri said it filed charges, secured guilty pleas and sentences, and obtained civil judgments against 15 defendants involving more than $60 million in actual or intended losses. 

One of the individuals charged is from the Lakes Region, as a release lists Jeffrey Christopher Benton of Taney County as being charged with fraudulently obtaining over $125,000 in SBA-PPP money, according to court records. He claimed the money for a business that did not exist and spent funds on personal expenses. 

The full release from the U.S. Attorney’s Office for the Western District of Missouri is below:

The U.S. Attorney’s Office for the Western District of Missouri has filed charges, secured pleas and sentences, and obtained civil judgments against 15 defendants, involving more than $60 million in actual or intended losses, with restitution nearing $800,000, as part of a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration (SBA), and the SBA Office of Inspector General (SBA-OIG), targeting fraud in the SBA’s Paycheck Protection Program (PPP). The Western District of Missouri was a key participant in this surge effort.  

From June 12 to September 1, 2026, SBA-OIG and federal prosecutors in the Fraud Division and across over 40 U.S. Attorney’s Offices, with assistance from various partners, obtained felony charges against nearly 80 fraud defendants responsible for approximately $100 million dollars in intended loss to the United States. These charges target a range of individuals who allegedly exploited COVID-era SBA loan programs at the height of the pandemic.  

Beyond newly charged defendants, as part of Operation No Doze, approximately 43 defendants pleaded guilty to SBA-related COVID fraud, reaching approximately $44 million in intended loss.  And approximately 40 defendants were sentenced for SBA-related COVID fraud, reaching nearly $100 million in intended loss. Together, this targeted surge resulted in fraud enforcement actions spanning over 160 criminal defendants and involved approximately $245 million dollars in intended loss to American taxpayers.

Operation No Doze is a direct result of President Donald J. Trump’s creation of the National Fraud Enforcement Division at the DOJ, the first new division in the DOJ in twenty years.

“For the past two and a half months, we have been engaged in an all-out effort to combat fraudsters and scammers who steal from hardworking American taxpayers. These fraudsters harm individuals, families, businesses, and communities that rely on these programs,” said R. Matthew Price, U.S. Attorney for the Western District of Missouri. “Today’s announcement exemplifies what it means to stand united on the front lines of this fight. Working alongside our partners as one team, we will bring criminals to justice and return funds to the hands of the people who need and deserve them.” 

“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”

“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder‑to‑shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”

“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud,  we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”

“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”

“We are proud to stand with our federal and state partners in rooting out criminal activity of all kinds, especially defrauding the public,” said Missouri Governor Mike Kehoe. “Fraud is not a victimless crime. Every dollar stolen is a dollar taken from hardworking taxpayers or from someone who depends on the programs those dollars are meant to support. In Missouri, we will continue working at every level to hold fraudsters accountable and protect those they seek to exploit.”

The following cases in the Western District of Missouri involved defendants who targeted government programs, attempting to divert funds intended to help Americans in need:

Jaylen Bates, of Cass County Missouri. According to court records, while charged with felony distribution of a controlled substance, Bates fraudulently obtained $41,666 in SBA-PPP money, claiming to operate two businesses that did not exist.
 
Jeffrey Christopher Benton, of Taney County, Missouri. Benton fraudulently obtained $125,308 in SBA-PPP money, according to court records. He claimed the money for a business that did not exist and spent funds on personal expenses.
 
DeZhon Byrd, of Jackson County, Missouri. Byrd is alleged to have fraudulently obtained $20,832 in SBA-PPP money and claimed the funds for a business that did not exist. He spent the money on personal expenses.
 
Brandon A. Garrett, of Jackson County, Missouri. Garrett fraudulently obtained $48,000 in SBA-PPP money, claiming the money was for two businesses that did not exist, court records show.
 
D’Mario Gray, of Jackson County, Missouri. Gray allegedly set up a “foundation” in his name, with the sole purpose of obtaining $48,750 in SBA-PPP money by fraudulently claiming his foundation had been adversely impacted by COVID-19. The money went to personal expenses, including trips to Miami and Houston.
 
Jamie William Gray, of Dade County, Missouri. Gray allegedly claimed to operate 19 separate businesses, including businesses focused on the pet industry. In total, Gray sought to fraudulently obtain $55,931.875.00 in SBA-PPP funds by filing 29 PPP and EIDL loans on the 19 businesses claiming that they were in operation prior to the COVID-19 pandemic. In every instance but one, none of the businesses claimed to be owned by Mr. Gray were in operation or existed. Gray effectively stole this company’s identity. Gray received $820,000 in SBA-PPP money because of the fraudulent activity. 
 
Matthew and Shasta Head of Texas County, Missouri allegedly claimed to run an outdoor service company, and grossly overinflated the number of employees they had. The Heads received $2,462.871 in fraudulent SBA-PPP funds.
 
Dylan Gregory Neely, of Jasper County, Missouri created two businesses which paid no taxes, according to court documents. Neely listed employees who never worked for him, and the social security numbers that he listed were not associated with the people he listed as employees. Neely fraudulently obtained $399,308.93 in SBA-PPP funds.
 
Sydney R. Washington, of Jackson County, Missouri fraudulently obtained $13,538 in PPP money, and the loan was later forgiven by the SBA, according to court documents.
 
Justin Williams, of Jackson County, Missouri, is alleged to have fraudulently obtained $20,832 in SBA PPP money. 
 
Gregory Burns, of Jackson County, Missouri, allegedly admitted to working with two other people to fraudulently obtain $487,600 in SBA-PPP loans.  Burns used his portion of the money to pay for personal expenses.
 
Waylen Leslie, of Buchanan County, Missouri, admitted to fraudulently obtaining $471,100 in SBA-PPP loans.  Leslie allegedly used the money to purchase crypto currency and other personal items.
 
Aviance Shepard, of Jackon County, Missouri and Shawneasha Watson, of Jackson County, Missouri were sentenced and ordered to pay more than $20,000 each in restitution for fraudulent SBA-PPP loans. 
 
A settlement was reached with William Patrick Vogt and By the Blade, LLC. The defendants agreed to pay the sum of nearly $750,000 for fraudulently obtaining an SBA-PPP loan. Vogt applied for and received the PPP Loan and later applied for and received full forgiveness of the PPP Loan despite knowing that he was ineligible for the loan because he had previously pleaded guilty to a federal offense of felony tax fraud in the United States District Court for the Western District of Missouri.
 Operation Show-Me the Money
To expand the state of Missouri’s collective ability to identify, investigate, and prosecute fraud, the Western District of Missouri, alongside Missouri Governor Mike Kehoe, Attorney General Catherine Hanaway, Secretary of State Denny Hoskins, and State Auditor Scott Fitzpatrick, announced the launch of Operation Show-Me the Money. This unprecedented collaborative effort between the State of Missouri and the Department of Justice will focus on protecting taxpayer dollars by prosecuting individuals and entities that defraud state benefit programs.

The focus of the initiative will be on state programs that distribute the $11.5 billion in federal funds Missouri receives to individuals and entities entitled under the law. The goal of Operation Show-Me the Money is to ensure taxpayer dollars reach the people and programs they were intended to support, while staying out of the hands of fraudsters.

National Fraud Enforcement Division

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.