Federal indictment accuses Atlanta man and alleged accomplice of stealing $1.5 million in COVID-19 relief

Arrest follows allegations of identity theft, wire fraud and money laundering tied to pandemic-era aid programs

Federal authorities have arrested a man wanted in connection with an alleged scheme that prosecutors say diverted roughly $1.5 million in COVID-19 relief funds through fraudulent applications and a network of bank transfers, according to allegations detailed in a federal indictment.

The case centers on an Atlanta man identified in court filings as “Chavo,” who has pleaded not guilty, and Theodore Jackson, who was arrested in Charleston, South Carolina, and is expected to be transferred to Atlanta for an initial court appearance. The indictment alleges the two worked together to steal strangers’ identities, attach that information to purported businesses, and seek federal relief payments intended to help employers and small businesses during the pandemic.

Investigators allege the applications included false statements aimed at qualifying for assistance. The indictment further alleges that once funds were approved, the money was moved through multiple bank accounts. Prosecutors describe the transfers as part of a laundering process used to distribute and conceal proceeds.

Federal cases at this stage remain allegations. Defendants are presumed innocent unless and until proven guilty in court.

What the indictment alleges about payments and timing

The grand jury indictment alleges the federal government wired more than $400,000 to Chavo on three separate dates in 2020 and an additional $125,000 in 2021. Prosecutors allege those transfers were among the payments connected to fraudulent relief claims and that the total proceeds linked to the scheme reached about $1.5 million.

Jackson is accused of assisting with identity theft and documentation used to connect relief applications to businesses that investigators allege were not legitimate. The indictment alleges both men participated in the submission of applications and in subsequent transfers of funds.

Charges and potential penalties

Both defendants face federal charges including eight counts of wire fraud and two counts of money laundering. Wire fraud and money laundering are commonly charged in cases involving alleged misuse of government benefit programs, particularly when funds move across bank accounts or between participants.

• Wire fraud: typically involves alleged schemes to obtain money through false or fraudulent representations using electronic communications.

• Money laundering: generally alleges transactions designed to conceal the source or ownership of criminal proceeds or to move and distribute funds derived from unlawful activity.

Prior conviction noted in court-related reporting

The indictment and related reporting also reference a prior conviction involving Chavo. He was previously convicted in connection with a tax return identity theft scheme that authorities said involved the identities of at least 10,000 people, and he served more than three years in prison.

Federal prosecutors have continued to bring pandemic-fraud cases years after the emergency programs began, as investigators review applications, bank records and identity-theft indicators tied to relief claims.