A Family Affair in Fraud: Sentenced for $11.5M in Pandemic Loans
- F.I. Editorial Team
- 2 hours ago
- 2 min read
While headlines are currently buzzing with the SBA’s administrative crackdown on 111,000 borrowers, the judicial system is quietly closing the book on some of the largest pandemic fraud rings in the country.
The latest case out of the Middle District of Pennsylvania serves as a stark reminder: The "pay and chase" era has shifted entirely into the "catch and convict" era.
On February 10, 2026, the fourth and final defendant was sentenced in a massive scheme that siphoned over $11.5 million from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. Here is the breakdown of what happened and what it means for the industry.
The Scheme: 120 Applications, 18 "Ghost" Businesses
This wasn't just a one-off mistake; it was a sophisticated, multi-year conspiracy led by Creed White (67) and his son, Joshua White (44).
The Hub: The fraud centered around a legitimate smelting business, but quickly spiraled into the creation of 18 dormant businesses that had no operations, no employees, and no purpose other than to act as "shells" for federal funds.
The Method: The group submitted approximately 120 fraudulent applications. They used a mix of knowing and unwitting individuals' identities to claim ownership of these shell companies.
The Paper Trail: To get past bank lenders, employees of the smelting company were tasked with creating fake tax records, banking statements, and business filings to give the "ghost" companies a thin veneer of legitimacy.
The Consequences: Prison and Restitution
The court did not go easy on the conspirators. The sentences handed down reflect the federal government's commitment to treating pandemic fraud as a high-level financial crime.
Creed White (Leader): Sentenced to 10 years in federal prison.
Joshua White (Son): Sentenced to 8 years (96 months) for bank fraud.
Joseph Bailey (Employee): Sentenced to 46 months for his role in forging documents.
Kester Murray (Employee): Sentenced to two years of probation.
In addition to prison time, the court ordered millions of dollars in restitution. Joshua White, specifically, was ordered to pay back over $2.3 million, a debt that will follow him long after his release.
