By: Richard L. Smith
Two California residents have been sentenced to federal prison for their roles in a money laundering scheme tied to internet-based fraud and the misuse of government pandemic relief loans, according to a statement released by the U.S. Department of Justice.
Eric Bullard, 62, of Los Angeles, was sentenced to 37 months in prison, while Anthony Hannah, 61, of Moreno Valley, received a 33-month sentence. 
Both men previously pleaded guilty to conspiracy to commit money laundering before U.S. District Judge Madeline Cox Arleo in Newark federal court.
According to information released by federal prosecutors, the scheme began in June 2020, when a Bergen County resident—referred to as Victim-1—was involved in a real estate transaction through a New Jersey law firm.
Unbeknownst to Victim-1, fraudsters had compromised the law firm’s email system. Using a business email compromise tactic, a co-conspirator sent fraudulent wire instructions that directed the victim to send approximately $560,000 to a bank account controlled by Bullard.
After receiving the funds, Bullard made a series of cash withdrawals and distributed portions of the stolen money to others involved in the conspiracy.
Prosecutors said he transferred about $230,000 to an account controlled by Hannah.
In a separate part of the scheme, both men also laundered proceeds from fraudulent loan applications submitted through the U.S. Small Business Administration’s Economic Injury Disaster Loan (EIDL) program—intended to assist small businesses impacted by COVID-19.
Bullard received $143,100 for a fake pharmacy business listed in Colorado, and Hannah received $145,400 for a similar scheme tied to a business in Idaho.
Hannah later transferred over $51,000 to Bullard.
In addition to the prison terms, Judge Arleo sentenced both men to three years of supervised release. They were also ordered to pay $705,400 in restitution. 
Bullard must forfeit over $611,000, and Hannah must forfeit more than $375,000 in illicit proceeds, according to the Justice Department.
The case highlights ongoing federal efforts to investigate and prosecute fraud related to both cybercrime and pandemic relief programs.