FAYETTE COUNTY, Ga. - A 35-year-old Fayette County man will spend nearly three years in federal prison after stealing roughly $1.25 million through bogus pandemic relief programs and fraudulent auto loans.
Fayette County man sentenced
The backstory:
Hugh A. Brown Jr., 35, of Fayetteville, Georgia, was sentenced Thursday by U.S. District Judge Victoria M. Calvert to two years and nine months in federal prison. The prison term will be followed by five years of supervised release.
Brown pleaded guilty on June 3 to bank fraud conspiracy and bank fraud. Judge Calvert also ordered him to pay $1,244,243.81 in restitution to the Small Business Administration, the Internal Revenue Service and victimized financial institutions.
Federal pandemic fraud uncovered
What we know:
Federal prosecutors said Brown began his multiyear scheme in 2020 by applying for a Paycheck Protection Program loan. He submitted falsified payroll numbers and fake IRS forms to a federally insured bank, securing a $162,500 payout.
In 2022, Brown filed fraudulent tax returns claiming Employee Retention Credits on behalf of his business. The government issued him seven U.S. Treasury checks totaling $644,452.98 in pandemic-related tax relief.
Vehicle collateral scheme exposed
Dig deeper:
From at least Feb. 2022 through Feb. 2025, Brown also targeted private lenders for nearly $450,000. He obtained vehicle loans from banks and credit unions by submitting falsified records, misrepresenting his income and inventing fake vehicle details as collateral.
Multiple federal law enforcement agencies partnered to investigate Brown’s years of fraudulent financial activity. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service Criminal Investigation, and the U.S. Postal Inspection Service, with assistance from Homeland Security Investigations.
Law enforcement leaders react
What they're saying:
"This defendant shamelessly fleeced federal taxpayers and financial institutions over half a decade through various loan fraud schemes," said U.S. Attorney Theodore S. Hertzberg. "My office will continue to prosecute and seek prison time for anyone who abuses government relief programs."
"Submitting false information to obtain federal pandemic relief funds, using fraudulent documents and deliberate misrepresentations to secure loans from banks and credit unions, are serious offenses that undermine the integrity of our financial institutions and erode public trust," said Acting Assistant Special Agent in Charge Patrick M. Palmer, IRS Criminal Investigation, Atlanta Field Office. "IRS Criminal Investigation remains steadfast in its commitment to identifying and investigating financial fraud. Working alongside our federal law enforcement partners and the U.S. Attorney’s Office, we will continue to protect taxpayers, safeguard the integrity of our financial system, and ensure that individuals who exploit these institutions for personal gain are held accountable under the law."
"The U.S. Postal Inspection Service sees firsthand through investigations how devastating fraud and deception can be on our communities. That’s why we commit, every day, to bring criminals that choose to undermine the integrity of our financial system and betray the trust of lenders to justice," said Rodney M. Hopkins, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service. "The defendant in this case stole money earmarked to help people in a time of economic uncertainty and used it to increase their bank account. The Postal Inspection Service’s message and mission are clear: You commit fraud, exploit our financial systems, and do harm to our communities, we will find you and bring you to justice."
Unanswered case details remain
What we don't know:
Federal authorities did not disclose the names of the specific banks and credit unions defrauded by Brown. Officials have also not revealed where Brown will serve his federal sentence or when he must surrender to custody.
The Source: The information in this story was gathered from U.S. Attorney Theodore S. Hertzberg, who detailed the sentencing and court findings in an official press release, as well as statements from IRS Criminal Investigation and the U.S. Postal Inspection Service.