Mobile man, 4 others sentenced in scheme to defraud COVID-19 business loan program

A federal judge in Mobile has sentenced five of the six defendants in a conspiracy to defraud a program to help businesses get through the COVID-19 pandemic, including a Small Business Administration loan processor who devised the scheme.

Karderrius Phelion of Mobile was sentenced to 30 months in prison and three years on supervised released and ordered to pay $98,415. Phelion pled guilty.

Prosecutors said Phelion used his position as a contract employee for the Small Business Administration to coach family and friends on how to obtain fraudulent loans from the SBA. He worked remotely from a Mobile apartment.

Chief District Judge Kristi K. DuBose of the Southern District of Alabama issued the sentence on Friday.

Others who pled guilty and were sentenced included Phelion’s brother, Kashunte Tate; sister, Khadijah Tate; and mother, Courtney Phelion.

Kashunte Tate was sentenced to six months in prison, five years on supervised release, and ordered to pay $8,000 in restitution. Khadijah Tate was sentenced to 60 days in prison, three years of supervised release, and ordered to pay $14,800 in restitution.

Courtney Phelion was sentenced to 60 days in prison, five years on supervised release, and ordered to pay $8,000 in restitution.

Brittney Bettison, a social acquaintance of Karderrius Phelion, also pled guilty and was sentenced to 90 days in prison and three years on supervised release.

Jeremiah Kelly, the sixth and final conspirator, pled guilty to being an accessory after the fact to wire fraud. Kelly is awaiting his sentence.

Related: $1 million COVID fraud case in Mobile part of nationwide rise in federal corruption cases