Pierce County residents among 6 accused of stealing millions in pandemic relief funds

Pierce County residents were among six people indicted by federal prosecutors for a wide-ranging scheme that allegedly defrauded pandemic relief programs of more than $3 million.

U.S. Attorney Nick Brown announced the 24-count indictment Wednesday morning. Prosecutors said Paradise Williams of Phoenix, Arizona orchestrated the fraud. She allegedly created fake documents and told her accomplices how to pose as landlords and tenants claiming to need rental assistance.

The defendants include Tia Janee Robinson, 28, of Fife; D’arius Akim Jackson, 37, of Bonney Lake; and David Jesus Martinez, 32, of Pacific. The others were Rayvon Darnell Peterson, 32, of Seattle and Jahari Asad Cunningham, 45, of Houston, Texas.

“The participants in this fraud were relentless in exploiting pandemic relief programs that were intended to assist small businesses and people who were vulnerable to eviction,” Brown said. “The need for the emergency rental assistance greatly outweighed the funds available, and we know that fraud schemes such as this one stole money that should have gone to those desperately needing help.”

Defendants were charged with 19 counts of wire fraud and five counts of money laundering. Williams was slapped with two more wire fraud charges. Prosecutors said wire fraud in connection with a presidentially declared major disaster or emergency is punishable by up to 30 years in prison and a $1 million fine. Money laundering is punishable by up to 20 years in prison.

The rental assistance program they allegedly defrauded paid for back rent and future payments, according to a news release, so the fraudulent landlord received payments of tens of thousands of dollars for each fake tenant application. Prosecutors said Williams got kickback payments from those who used the scheme, and she personally received more than $740,000 in emergency funds.

None of the defendants owned any rental properties, and they weren’t the tenants they impersonated, prosecutors said.

Williams and others were also accused of defrauding or attempting to defraud unemployment systems in Washington, California, South Carolina and Nevada. They allegedly defrauded two Small Business Administration programs: Economic Injury Disaster Loans and the Paycheck Protection Program.

Between June 2020 and August 2021, Williams and others submitted at least 35 fraudulent applications for loans seeking over $3.7 million from the Small Business Administration, prosecutors said. According to court documents, the group used the money they received to pay for luxury cars, lavish trips, cosmetic surgery, jewelry and designer goods. Williams allegedly bought a 2018 Range Rover SUV and a 2017 Lexus Sedan, both of which were seized Monday in Phoenix. She also allegedly used the funds to travel to Miami in June 2021, where she rented a Lamborghini.

Prosecutors said Williams, Jackson and others submitted at least 13 fraudulent applications to the PPP program seeking about $253,000, and nearly $212,000 was paid out.

The case was investigated by the FBI with assistance from the Small Business Administration’s Office of the Inspector General. Two defendants were arrested Monday in Phoenix, another was arrested in Houston and three were arrested in Washington state, according to the release.