Florida Restaurateur Pleads Guilty to Multi-Million Dollar COVID-19 Fraud Scheme
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A Florida man has admitted to defrauding the Small Business Administration (SBA) and the U.S. Bankruptcy Court out of over $1.1 million in funds intended to support businesses struggling during the COVID-19 pandemic. Sean Eric Thompson, 44, formerly of Pace, Florida, pleaded guilty to multiple federal charges, including wire fraud, money laundering, and bankruptcy fraud, according to a statement released by the U.S. Attorney’s Office for the Northern District of Florida.
Pandemic Relief Funds Misappropriated
The scheme unfolded in May 2021 when Thompson, a partial owner of a brewery and restaurant, submitted a fraudulent application to the Restaurant Revitalization Fund (RRF). This program was established to provide critical financial assistance to food and beverage businesses impacted by the economic fallout of the COVID-19 pandemic. Thompson falsely claimed his business had incurred $1,128,233 in COVID-19 related losses. On May 25, 2021, the SBA approved and disbursed the full amount into an account controlled by the defendant.
Instead of using the funds to support the struggling business, Thompson diverted the money for personal gain. Between August and November 2021, he transferred $150,000 of the RRF funds into his personal investment account. This misuse of funds represents a significant breach of trust and a direct theft from a program designed to help legitimate businesses survive a national crisis.
Bankruptcy Filing Further Compounds Fraud
The fraudulent activity did not end with the misappropriation of RRF funds. In August 2023, Thompson filed for Chapter 7 bankruptcy. However, court documents reveal that the bankruptcy petition and associated schedules contained numerous false statements and omissions. Crucially, Thompson failed to disclose the existence of the RRF funds and his ownership stake in a separate, unrelated business.
During a September 2023 meeting of creditors, Thompson testified under oath that his bankruptcy filings were accurate and complete. He also falsely denied having any assets in his second business. Further compounding the deception, Thompson submitted fraudulently altered financial statements to the bankruptcy trustee in February 2024.
The case was the result of a joint investigation by the Federal Bureau of Investigation (FBI) and the SBA. Assistant United States Attorney Eric W. Welch is prosecuting the case. U.S. Attorney John P. Heekin emphasized the commitment of his office to pursuing those who exploit government programs for personal enrichment.
“My office is hard at work with our federal law enforcement partners to track down and prosecute every single instance of fraud against the U.S. Government during the COVID-19 pandemic,” Heekin stated. “We will continue to aggressively prosecute these crimes and will use every available means to recover the U.S. taxpayer monies stolen by the fraudsters to enrich themselves.”
Thompson now faces a potentially lengthy prison sentence. He could receive up to 20 years imprisonment and three years of supervised release for each wire fraud count. Additional penalties include up to five years imprisonment and one year of supervised release for each false statement count, up to ten years imprisonment and three years of supervised release for each money laundering count, and up to five years imprisonment and three years of supervised release for each bankruptcy fraud count. Sentencing has not yet been scheduled.
