Date: 10-04-2024

Case Style:

United States of America v. Michael Fullerton; Tiffany Fullerton

Case Number: 1:21-cr-00216

Judge: Robert Pitman

Court: The United States District Court for the Western District of Texas (Travis County)

Plaintiff's Attorney: The United States Attorney’s Office in Austin, Texas

Defendant's Attorney:

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Description:

Austin, Texas criminal defense lawyer represented the Defendant charged with Paycheck Protection Program (PPP) fraud scheme.
Texas Couple Sentenced to Federal Prison for COVID-Era PPP Loan Fraud

Michael Fullerton, 51, and Tiffany Fullerton, 48, along with two other co-conspirators, used one existing and three dormant and expired business names to submit six fraudulent PPP loan applications for a total exceeding $3.5 million. Five of those applications were funded, allowing the defendants to receive approximately $3 million in PPP funds. The funds were used in an attempt to start a business in Oklahoma consisting of a marijuana grow and dispensary, a bar and grill, and an auto/boat repair shop. Additionally, the funds were used to purchase a motor home, luxury watches, a boat, and other personal expenditures.

In March, Michael Fullerton pleaded guilty to 11 counts in a superseding indictment charging him with multiple counts related to bank and wire fraud, along with aggravated identity theft. The following month, on April 29, Tiffany Fullerton was found guilty in a federal jury trial for one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering.

“Michael and Tiffany Fullerton were convicted of defrauding our federal government and banks during the height of the COVID-19 pandemic,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “They took advantage of a national emergency to enrich themselves. This U.S. Attorney’s Office will not hesitate to hold fraudsters who abuse public programs accountable.”

“The Fullertons and their co-conspirators created a complex scheme to fraudulently obtain Paycheck Protection Program loans intended to help small businesses affected by the COVID-19 pandemic. They falsified payroll records, banking details, and other financial documents to obtain the funds. The stolen money became their playground, purchasing luxury watches, cars and other goods,” said Lucy Tan, acting Special Agent in Charge of IRS Criminal Investigation’s Houston Field Office. “Financial investigations follow the money, and it always leaves a trail. If you’re committing the crime, it’s only a matter of time before you’re caught and sent to prison.”

“The defendants undermined the integrity of the tax administration system, defrauding taxpayers of millions of dollars,” said Acting Special Agent in Charge Kyle Kuykendall for the Treasury Inspector General for Tax Administration. “Public confidence in our country’s tax administration system is essential, and TIGTA will continue wo work closely with our law enforcement partners and prosecutors to vigorously investigate and pursue anyone who attempts to challenge it.”

IRS-CI and TIGTA investigated the case.

Assistant U.S. Attorneys Keith Henneke and G. Karthik Srinivasan prosecuted the case.

Outcome:

Defendant was found guilty and

Michael Fullerton was sentenced to 286 months in federal prison for all 11 counts.
Tiffany Fullerton was sentenced to 108 months in federal prison. The couple was also ordered to pay $3,027,526.11 in restitution

Plaintiff's Experts:

Defendant's Experts:

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