Texas Couple Sentenced to Federal Prison for COVID-Era PPP Loan Fraud

A Georgetown couple has been sentenced to a combined 32 years in federal prison for defrauding the Paycheck Protection Program (PPP).Photo byRyan DuffyonUnsplash

Michael Fullerton, 51, and Tiffany Fullerton, 48, of Georgetown, Texas, were sentenced to a total of 32 years in federal prison for their roles in a scheme to fraudulently obtain more than $3 million in Paycheck Protection Program (PPP) loans.

The U.S. Attorney’s Office for the Western District of Texas announced the sentencing today.

According to court documents, the Fullertons, along with two co-conspirators, used one active and three dormant business names to submit six fraudulent PPP loan applications, totaling over $3.5 million.

Five of the applications were approved, resulting in the disbursement of approximately $3 million in PPP funds.

Rather than using the funds to support struggling businesses, the defendants diverted the money to fund personal luxuries and attempted to start several ventures in Oklahoma, including a marijuana grow operation, a bar and grill, and an auto/boat repair shop.

The funds were also used to purchase a motor home, luxury watches, a boat, and other personal items, according to the U.S. Attorney’s Office.

In March 2024, Michael Fullerton pleaded guilty to 11 counts of bank fraud, wire fraud, and aggravated identity theft.

In April 2024, after a federal jury trial, Tiffany Fullerton was found guilty of conspiracy to commit bank fraud and conspiracy to commit money laundering, the department says.

Michael Fullerton was sentenced to 286 months (over 23 years) in federal prison, while Tiffany Fullerton received 108 months (9 years) for her role in the scheme.

Additionally, the couple was also ordered to pay $3,027,526.11 in restitution.

“Michael and Tiffany Fullerton took advantage of a national emergency to enrich themselves, defrauding our government and banks at the height of the COVID-19 pandemic,” said U.S. Attorney Jaime Esparza for the Western District of Texas.

“This office remains committed to holding those who abuse public programs accountable.”