Mobile man, 4 others sentenced in scheme to defraud COVID-19 business loan program

A federal judge in Mobile has sentenced five of the six defendants in a conspiracy to defraud a program to help businesses get through the COVID-19 pandemic, including a Small Business Administration loan processor who devised the scheme.

Karderrius Phelion of Mobile was sentenced to 30 months in prison and three years on supervised released and ordered to pay $98,415. Phelion pled guilty.

Prosecutors said Phelion used his position as a contract employee for the Small Business Administration to coach family and friends on how to obtain fraudulent loans from the SBA. He worked remotely from a Mobile apartment.

Chief District Judge Kristi K. DuBose of the Southern District of Alabama issued the sentence on Friday.

Others who pled guilty and were sentenced included Phelion’s brother, Kashunte Tate; sister, Khadijah Tate; and mother, Courtney Phelion.

Kashunte Tate was sentenced to six months in prison, five years on supervised release, and ordered to pay…

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