United States of America v. Eric R. Shibley

Seattle, Washington criminal defense lawyer represented defendant charged with fraud.



Eric R. Shibley, age 43, of Seattle was convicted following a trial in November 2021.



"Mr. Shibley took advantage of the community, disrupted and distraught by the pandemic, to try to enrich himself through fraud,” said U.S. Attorney Nick Brown. "These funds were desperately needed to keep people employed by legitimate small businesses. This fraud made it tougher for those truly in need.”



According to court documents and evidence presented at trial, Shibley, submitted 26 fraudulent PPP applications and 13 EIDL loan applications to federally insured financial institutions, other Small Business Administration (SBA)-approved lenders, and the SBA, in the names of businesses with no actual operations or by misrepresenting the business's eligibility. In the applications, Shibley misrepresented the number of employees and payroll expenses in several applications and concealed his own criminal history. To support the fraudulent applications, Shibley submitted fake tax documents and the names of purported employees who did not, in fact, work for the businesses for which Shibley claimed they worked. Shibley was convicted by a jury of seven counts of wire fraud, three counts of bank fraud, and five counts of money laundering.



Shibley was ordered to pay $1,438,000 in restitution. Shibley's license to practice medicine was suspended in 2020.



"As the American people suffered from the negative economic effects of the pandemic, Mr. Shibley chose to further this suffering by stealing funds meant to help small businesses stay afloat,” said Adam Jobes, Assistant Special Agent in Charge, IRS Criminal Investigation (IRS:CI), Seattle Field Office. "Contrary to his oath as a physician to cause no harm, Mr. Shibley caused great harm to those around him as he illegally pocketed resources meant for those who actually qualified for and needed those funds. Financial crimes are not victimless, and IRS:CI will continue to investigate and bring to justice those like Mr. Shibley who choose their own greed above the well-being of the public.”



"OIG is steadfast in our commitment to expose and bring to justice those who would seek to defraud SBA's pandemic assistance programs,” said SBA OIG's Special Agent in Charge Weston King. "OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Attorney's Office and our law enforcement partners for their dedication and pursuit of justice.”



SBA-OIG, the FBI's Seattle Field Office, FDIC-OIG, TIGTA, IRS-CI, HSI, and HHS-OIG investigated the case.



Trial Attorney Laura Connelly of the Criminal Division's Fraud Section and Assistant U.S. Attorney Brian Werner of the Western District of Washington prosecuted the case.



Wire Fraud 18:1343 and 2

(1-7)



Bank Fraud 18:1344(2) and 2

(8-10)



Money Laundering 18:1957 and 2

(11-15)

At sentencing hearing U.S. District Judge John C. Coughenour said the sentence was due to “the blatant nature of the fraud and its size.” Judge Coughenour also noted Shibley’s decision to testify in the case saying, “I have to say it was one of the worst performances of a criminal defendant. There was very little willingness to adhere to the truth while testifying.”



48 months Imprisonment in the Custody of the Bureau of Prisons with a recommendation for placement in RDAP and a placement at FPC Sheridan; followed by 3 years Supervised Release with Mandatory, Standard and Special Conditions as set forth in the judgment; Fine Waived; Restitution in the amount of $1,438,000.00; and $100.00 Special Assessment per count of conviction