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Priority review Enforcement Amended Final

Norfolk Man Sentenced to 3 Years 10 Months for PPP Fraud and Money Laundering

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Filed April 2nd, 2026
Detected April 7th, 2026
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Summary

IRS Criminal Investigation announced the sentencing of Brian Renard Manley Jr. to 3 years and 10 months in federal prison for money laundering and unlawful monetary transactions connected to fraudulent Paycheck Protection Program loans. Manley and his co-defendant spouse obtained $700,000 in total fraudulent PPP funds ($350,000 each) by submitting applications containing fabricated tax returns created by a third party in Georgia.

What changed

A federal court in Norfolk, Virginia sentenced Brian Renard Manley Jr. to 46 months in prison following conviction for money laundering and unlawful monetary transactions arising from a PPP fraud scheme. Manley received $350,000 in fraudulent PPP loans based on fake tax returns prepared by an associate in Georgia, then immediately transferred the funds to a new bank account. He and co-defendant spouse Lacole Manley obtained an additional $350,000 in fraudulent PPP loans using similar methods, spending the proceeds on personal luxury expenses including travel to Orlando and Las Vegas and the purchase of a luxury vehicle.

Small business owners and financial institutions should note that federal authorities continue to pursue criminal enforcement against pandemic relief fraud. Businesses seeking PPP or similar government assistance must ensure all application materials are accurate and properly documented. The IRS-CI and FBI continue investigating these matters, and co-defendant Lacole Manley's sentencing remains pending.

What to do next

  1. Ensure PPP loan applications contain accurate and verifiable business information
  2. Document legitimate business expenses and payroll if applying for or managing pandemic relief funds
  3. Report any suspected PPP fraud to appropriate authorities

Penalties

3 years and 10 months (46 months) federal prison sentence for money laundering and unlawful monetary transactions; co-defendant Lacole Manley faces sentencing on May 19, 2026

Source document (simplified)

Date: April 2, 2026

Contact: newsroom@ci.irs.gov

Norfolk, VA – A Norfolk man was sentenced to three years and 10 months in prison for money laundering and unlawful monetary transactions relating to the fraudulent receipt of funds from the Paycheck Protection Program (PPP).

According to court records and evidence presented at trial, in May 2020, Brian Renard Manley Jr. sent an email containing information about his businesses to an individual in Georgia who created fake tax returns for the business and submitted a fraudulent PPP application. PPP was administered by the Small Business Administration to provide low-interest financing to pay up to eight weeks of payroll costs for eligible small businesses experiencing substantial financial disruption due to the pandemic.

As a result of the fraudulent PPP application, Brian Manley received $350,000, which he immediately transferred into a newly opened bank account for a different company. The next day, he forwarded an email to the same individual in Georgia from his co-defendant spouse, Lacole Manley, which contained information and data about her business.  Lacole Manley later received an additional $350,000 PPP loan after a fraudulent application was submitted in her name by the same individual in Georgia. The Manleys used the PPP funds to pay for various personal expenses, including travel to Orlando and Las Vegas as well as the purchase of a luxury vehicle.

Lacole Manley is expected to be sentenced on May 19.

The IRS Criminal Investigation Washington D.C. Field Office and the FBI’s Norfolk Field Office investigated the case. Assistant U.S. Attorneys Anthony C. Mozzi and Clayton D. LaForge are prosecuting the case.

IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 18 field offices located across the U.S. and maintains an international presence through attaché posts abroad.

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Source

Analysis generated by AI. Source diff and links are from the original.

Classification

Agency
IRS-CI
Filed
April 2nd, 2026
Instrument
Enforcement
Legal weight
Binding
Stage
Final
Change scope
Substantive

Who this affects

Applies to
Small businesses that received pandemic relief funding should review PPP loan application documentation and use of funds Financial institutions should monitor for suspicious PPP-related transactions consistent with BSA/AML obligations Government agencies administering relief programs continue enforcement oversight
Industry sector
5221 Commercial Banking
Activity scope
SBA loan fraud Money laundering Criminal sentencing
Geographic scope
United States US

Taxonomy

Primary area
Financial Services
Operational domain
Legal
Compliance frameworks
Dodd-Frank
Topics
Banking Anti-Money Laundering Securities

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