Jacksonville Real Estate Broker Charged with PPP Loan Fraud in Alleged $6 Million Ponzi Scheme

On April 17, 2026, federal prosecutors in Jacksonville, Florida, announced a grand jury indictment against Cedric Dewayne Griffin, a local real estate broker, for his alleged role in a Ponzi scheme that defrauded investors of nearly $6 million. Griffin now faces three counts of wire fraud and one count of illegal monetary transactions tied to fraudulent applications for loans under the COVID-19-era Paycheck Protection Program (PPP).

According to the indictment, Griffin applied for two PPP loans in 2020 and 2021 through his company, Residential Alabama LLC. In the applications, he claimed the business had dozens of employees and an average monthly payroll of tens of thousands of dollars. The first loan was approved for $216,287, and the second for $186,632, both intended to cover payroll, lease or mortgage interest, and utilities. Griffin as well sought and received forgiveness for the first loan under the PPP program.

However, prosecutors allege that Residential Alabama LLC had no employees and incurred no payroll expenses. The loan proceeds were instead used for Griffin’s personal benefit. The fraudulent loan applications and forgiveness request form the basis of the three wire fraud charges.

Griffin was charged with one count of illegal monetary transaction for transferring $20,000 from Residential Alabama LLC’s bank account to another of his companies, G8 Equity, LLC.

The case is part of a broader federal effort to combat abuse of pandemic relief programs. The Paycheck Protection Program, established by the CARES Act in 2020, was designed to provide forgivable loans to small businesses to maintain payroll during the COVID-19 pandemic. Whereas the program distributed over $800 billion in loans, it has also been targeted by fraudsters seeking to exploit its lax initial oversight.

Federal authorities have since intensified investigations into PPP fraud, resulting in hundreds of charges nationwide. In Griffin’s case, the alleged scheme combined traditional Ponzi-like investor fraud with misuse of federal relief funds, amplifying the financial harm to victims.

As of the indictment date, Griffin remains subject to federal prosecution. If convicted on all counts, he could face significant prison time and financial penalties under federal wire fraud and money laundering statutes.

Key Takeaways

• Cedric Dewayne Griffin, a Jacksonville real estate broker, was indicted on April 17, 2026, for allegedly orchestrating a Ponzi scheme that defrauded investors of nearly $6 million.
• He faces three counts of wire fraud and one count of illegal monetary transaction related to fraudulent PPP loan applications.
• Prosecutors say Griffin falsely claimed his company had employees and payroll to secure over $400,000 in PPP funds, which he used for personal expenses.
• The case highlights ongoing federal efforts to prosecute abuse of pandemic relief programs like the Paycheck Protection Program.

Frequently Asked Questions

What is the Paycheck Protection Program (PPP)?

The Paycheck Protection Program was a federal loan initiative created by the CARES Act in March 2020 to facilitate small businesses keep their workforce employed during the COVID-19 pandemic. Loans could be forgiven if used for eligible expenses like payroll, rent, and utilities.

How did Griffin allegedly commit fraud?

Prosecutors allege Griffin lied on his PPP loan applications by claiming his company, Residential Alabama LLC, had employees and substantial payroll when it did not. He then used the loan funds for personal purposes and transferred money between his companies, violating federal law.

What penalties could Griffin face?

Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense. The illegal monetary transaction charge carries up to 10 years in prison and similar fines. Actual sentencing would depend on judicial discretion and federal guidelines.