A former U.S. Agency for International Development (USAID) employee received a federal prison sentence for a Coronavirus Aid, Relief, and Economic Security (CARES) Act scheme that allowed him to illegally obtain more than $176,000 in COVID-19 pandemic relief funds.
U.S. district judge Theodore Chuang sentenced Simeon Bakare, 56, of Waldorf, Maryland, to six months in federal prison, followed by three years of supervised release, including two months of home detention, on a wire-fraud charge tied to the scheme.
The judge also ordered Bakare to forfeit $176,000 and to pay $176,000 in restitution. This prosecution is part of the Trump Administration’s Task Force to Eliminate Fraud.
Kelly Hayes, U.S. attorney for the District of Maryland, announced the sentence with Acting Special Agent in Charge Eduardo Santos of the USAID Office of Inspector General (USAID OIG). USAID OIG is a statutorily independent law enforcement agency that has continuing jurisdiction to investigate criminal activity affecting ongoing U.S. foreign assistance programs.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act—a federal law enacted in March 2020—provided emergency financial assistance to Americans affected by the economic effects of the COVID-19 pandemic.
It provided financial assistance, including forgivable loans, to small businesses for job retention and other expenses. Established by the CARES Act, the Paycheck Protection Program—administered through the Small Business Administration—and the Economic Injury Disaster Loan (EIDL) helped businesses meet their financial obligations.
On June 3, 2026, Mr Bakare pled guilty to wire fraud in connection with the CARES Act scheme.
According to his guilty plea, from April 2020 through November 2021, Mr Bakare knowingly and willfully engaged in a scheme to defraud the SBA.
Mr Bakare admitted he submitted, or caused the submission of, multiple fraudulent PPP and EIDL applications. Through this scheme, Mr Bakare also caused PPP and EIDL benefits to be deposited into bank accounts he controlled.
To further the fraud scheme, Mr Bakare used fabricated documents to support his fraudulent PPP and EIDL applications. Mr Bakare submitted five false loan applications to obtain PPP and EIDL benefits and loan forgiveness, including fraudulent IRS Schedule C Forms and false attestations regarding the existence of sole proprietorships.
None of the businesses Mr Bakare listed on the applications had significant employees, office space, revenues, costs of goods sold, or business operations.
Mr Bakare admitted he knowingly used the PPP and EIDL proceeds for improper personal purposes, such as car and housing payments, as well as grocery costs.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement 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 Donald Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice-President JD Vance to eliminate fraud, waste, and abuse within federal benefit programmes.