Convicted felon sentenced to prison for pandemic relief fraud

CINCINNATI – Kipterrez James, 44, of Cincinnati, was sentenced in U.S. District Court to 13 months in prison for COVID-19 pandemic relief fraud.

According to court documents, in 2021, James applied for a Paycheck Protection Program (PPP) loan claiming that he had been running a taxi/rideshare business called “Kip James.”

In reality, he was at a halfway house in Cincinnati and had just been released following a 92-month federal prison sentence for illegally possessing a firearm as a previously convicted felon. James listed the halfway house address as his address on the application.

The defendant claimed on his loan application that his business had approximately $99,000 in gross income in 2019, when he was actually still incarcerated. In support of his loan, James submitted a forged bank statement.

James received nearly $21,000 and spent the money at restaurants, shopping at clothing, shoe and liquor stores, and on a trip to Las Vegas.

As part of his sentence, he is ordered to pay back the $20,725 in restitution.

James pleaded guilty in September 2024 to making false statements to the federal government.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Angie M. Salazar, Special Agent in Charge, Homeland Security Investigations (HSI) Detroit, announced the sentence imposed yesterday by Senior U.S. District Court Judge Michael R. Barrett. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.

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