Mycheal Arnell Brady of Peachtree City, also known as “Michael Brady,” was charged in federal court with wire fraud and aggravated identity theft for embezzling Covid-19 relief funds and filing fraudulent federal tax returns using the stolen identities of several people.
Brady was also charged with possession of unauthorized access devices containing numerous personal information of identity theft victims, including their Social Security numbers.
“Brady’s alleged scheme defrauded programs designed to assist legitimate businesses struggling during the Covid-19 relief pandemic,” said U.S. Attorney Ryan K. Buchanan. “To further perpetrate his fraud, he also allegedly used stolen personal information from unsuspecting victims to file fraudulent tax returns and obtain refunds.”
“Mycheal Brady’s alleged theft of CARES Act funds and other criminal activities led to his indictment today,” said Demetrius Hardeman, special agent in charge of IRS Criminal Investigation, Atlanta Field Office. “It is only a matter of time before IRS Criminal Investigation special agents and our law enforcement partners uncover the crimes of many others who defrauded the American people during the Covid-19 pandemic.”
According to U.S. Attorney Buchanan, the indictment and other information presented in court, Mycheal Brady allegedly submitted several fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) loan applications to authorized lenders and the Small Business Administration.
The applications contained false information about gross sales and employees at his various companies and requested over $1.9 million in financing. He also allegedly submitted falsified tax forms and bank statements to support his loan applications.
Brady allegedly received more than $330,000 from the fraudulent EIDL and PPP loans that were not used for authorized business purposes.
In connection with his fraudulent schemes, Brady also allegedly possessed dozens of identity theft victims’ Social Security numbers, which he then used to apply for federal tax refunds. The victims were unaware of Brady’s use of their personal identification information, nor did they consent to him applying for their federal tax refunds on their behalf.
Mycheal Arnell Brady, also known as “Michael Brady,” 36, of Peachtree City, Georgia, was arraigned on August 5, 2024, before United States Magistrate Judge J. Christopher C. Bly. He was indicted by a federal grand jury on July 23, 2024. The public is reminded that the indictment contains counts only. The defendant is presumed innocent of the charges, and it is the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service’s Criminal Investigation Division and the U.S. Small Business Administration’s Office of Inspector General.
Assistant U.S. Attorneys Natasha Cooper and Samir Kaushal are prosecuting the case.
“This case demonstrates our unwavering commitment to protecting the integrity of the COVID-19 relief programs,” said Amaleka McCall-Braithwaite, SBA OIG Special Agent in Charge for the Eastern Region. “Fraudulent activity undermines the purpose of these important programs designed to support legitimate small businesses struggling during the pandemic. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their support and dedication to ensuring those who exploit federal programs are held accountable.”
On May 17, 2021, the Attorney General established the Covid-19 Fraud Enforcement Task Force to pool the resources of the Department of Justice in collaboration with agencies across all government agencies to intensify efforts to combat and prevent pandemic-related fraud.
The Task Force supports the investigation and prosecution of key culprits at home and abroad and assists authorities entrusted with implementing fraud prevention assistance programs. To this end, it complements and integrates existing coordination mechanisms, identifies resources and methods to detect fraudulent actors and their schemes, and shares and leverages information and lessons learned from previous prosecutions, among other things.
Anyone with information about allegations of attempted fraud related to Covid-19 can report them by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) hotline at 866-720-5721 or using the NCDF’s web complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
