August 20, 2025 — This week marked the conclusion of the final sentencing in a significant COVID-19 relief fraud case, with Frederick Smith, 56, from Cordova, Tennessee, receiving a 23-month prison sentence for his involvement in a scheme that swindled over $17 million from federal pandemic relief programs.
Smith was among eight individuals found guilty in this scheme, which entailed submitting fraudulent loan applications to both the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. The defendants utilized false information—such as exaggerated payroll figures and made-up employees—to obtain substantial loans, which were subsequently misused for unauthorized personal expenses.
The sentencing of all eight defendants has culminated in a combined total of 96 months in prison and 45 months of home confinement. The other defendants and their respective sentences include:
Rodrick Flowers, 49, Memphis, TN – 58 months in prison
Jarvys Jones, 40, West Memphis, AR – 12 months in prison
Mary Payne, 63, Memphis, TN – 6 months in prison, 5 months community confinement, 5 months home detention
Cleveland Wells, 67, Memphis, TN – 1 month in prison, 5 months home detention
LaTonya Herman, 46, Memphis, TN – 1 month in prison, 5 months home detention
Brian Mays, 41, Olive Branch, MS – 18 months home detention
Krystall Sherrod, 36, Memphis, TN – 12 months home detention
As reported by the Department of Justice, many of the fraudulent applications were crafted by Rodrick Flowers, who was instrumental in orchestrating the scheme.
The Justice Department emphasized the seriousness of exploiting emergency relief programs, especially during a national crisis. “This sentencing demonstrates our continued commitment to holding accountable those who abused vital pandemic aid,” said Acting Assistant Attorney General Matthew R. Galeotti of the DOJ’s Criminal Division.
