Hardell Mack, age 54, of New Orleans, pleaded guilty on March 25 before United States District Judge Jane Triche Milazzo to a four-count indictment involving false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), conspiracy to commit mail fraud, money laundering, and possessing a stolen vehicle. Mack also pleaded guilty to wire fraud in a matter transferred from the Middle District of Louisiana, according to U.S. Attorney David I. Courcelle.
The case highlights ongoing efforts by federal authorities to address fraudulent activities connected with pandemic relief programs. Authorities say such crimes divert funds intended for businesses and individuals affected by COVID-19.
According to court records, Mack obtained a Paycheck Protection Program (PPP) loan through false statements on July 24, 2020. He received $20,284 from this loan and later secured three additional fraudulent PPP loans for a total loss of $79,356 to the Small Business Administration. The indictment also charged that Mack conspired via interstate mail to file false tax records in order to obtain an Employee Retention Credit from the Internal Revenue Service funded by the U.S. Treasury; this resulted in government losses totaling $625,310. Using proceeds from these schemes, he committed money laundering by sending over $10,000 to an investment company in Florida and was found in possession of a stolen McLaren automobile taken from Connecticut.
In addition to these charges in the Eastern District of Louisiana case, Mack admitted guilt for defrauding an investor through wire fraud related to a concert promotion scheme as part of proceedings transferred from the Middle District of Louisiana.
Sentencing is scheduled for June 24. For Counts One and Two in the Eastern District case Mack faces up to five years’ imprisonment each; Counts Three and Four carry up ten years each; while his plea on Count Two out of the Middle District could result in up twenty years’ imprisonment. All counts include potential fines up $250,000 or greater based on financial gains or losses involved as well as supervised release terms and mandatory special assessment fees after conviction.
The investigation was led by agents assigned with the Pandemic Response Accountability Committee Fraud Task Force—a group established during COVID-19 response efforts with authority across agencies including oversight over more than $5 trillion spent during pandemic relief programs such as PPP loans—and supported by multiple federal agencies including Veterans Affairs Office of Inspector General (a PRAC member), IRS Criminal Investigation Division and FBI.
