Great Falls Man Convicted of Defrauding COVID Relief Program Out of $99,900

GREAT FALLS — A Great Falls man with multiple felony convictions was found guilty Tuesday of defrauding the federal government out of nearly $100,000 in COVID-19 relief funds through false statements about his business “Big City Enterprises, LLC.”

Chief U.S. District Judge Brian M. Morris convicted Raymond Marcellous Blair, 45, of one count of wire fraud and two counts of money laundering following a one-day bench trial in Great Falls Federal District Court.

Blair faces up to 20 years in prison on the wire fraud charge and up to 10 years on each money laundering count, along with a $250,000 fine and three years of supervised release. Sentencing is scheduled for January 28, 2026.

False Claims Lead to $99,900 Fraud

According to court documents and trial testimony, Blair applied for an Economic Injury and Disaster Loan (EIDL) from the Small Business Administration in August 2020, claiming his business had gross revenues of $249,000.

The claim was false. Blair also lied about his criminal history, certifying that he had not been convicted of a felony or placed on probation within the previous five years.

In reality, Blair was convicted of aggravated assault in 2011 and failure to register as a violent offender in 2017. He was still on probation in 2020 when he submitted his fraudulent EIDL application for Big City Enterprises, LLC.

Based on Blair’s false representations, the SBA approved his loan application and wired $99,900 into his bank account on September 1, 2020.

Large Cash Withdrawals Trigger Money Laundering Charges

Blair quickly moved to access the fraudulent funds, making two large cash withdrawals that formed the basis of his money laundering charges.

On September 3, 2020, he withdrew $15,010 from his U.S. Bank account. Seven weeks later, on October 23, 2020, Blair withdrew another $50,000 in cash from the same account.

“Blair twice transferred more than $10,000 out of that account and spent the majority of the loan proceeds on personal expenses,” prosecutors said in court documents.

Blair defaulted on the loan, and the SBA charged off the full amount on June 18, 2023.

Part of Broader COVID Relief Fraud Crisis

Blair’s conviction comes as federal prosecutors continue pursuing an estimated $200 billion in fraudulent COVID relief funds distributed through SBA programs.

In July, Montana Congressman Troy Downing’s legislation to extend the statute of limitations for prosecuting COVID loan fraud advanced through the House Committee on Small Business.

“During the COVID-19 pandemic, bad actors defrauded the federal government out of billions in illegitimate loans and grants,” Downing said at the time. “My bill empowers law enforcement to hold these fraudsters accountable.”

The EIDL program, designed to provide low-interest financing to small businesses affected by the pandemic, was particularly vulnerable to exploitation. The program allowed loans of up to $2 million to eligible small businesses experiencing substantial financial disruption due to COVID-19.

Investigation and Prosecution

Assistant U.S. Attorney Benjamin D. Hargrove prosecuted the case. The investigation was conducted by the Small Business Administration Office of Inspector General.

Blair was released on conditions pending his January sentencing. Chief Judge Morris will determine his sentence after considering federal sentencing guidelines and other statutory factors.