Former Derry man gets 34-month prison sentence in COVID fraud scheme

David Dodge was sentenced by U.S. District Court Judge Paul Barbadoro on charges of bank fraud to receive pandemic relief funds

 A former Derry man has been sentenced to 34 months in prison and three years of supervised release for his part in a COVID-19 fraud scheme.

David Dodge, 42, was sentenced by U.S. District Court Judge Paul Barbadoro on Wednesday, May 29, according to a press release from U.S. Attorney Jane E. Young.

Dodge pleaded guilty in February to bank fraud, which included submitting approximately three dozen fraudulent applications for pandemic relief funds, amounting to $2.5 million, Young said.

His wife and co-conspirator, Tammy Dodge, pleaded guilty to bank fraud in March. Her sentencing is scheduled for June 10, according to the press release.

“Congress passed the CARES Act to help Americans struggling during the worst health crisis in a century,” Young said. “The defendant exploited this lifeline to steal from taxpayers to buy luxury items including a diamond ring. Today’s significant sentence reflects the seriousness of the offense and underscores that we are continuing to vigilantly prosecute pandemic relief fraud.”

Dodge claimed to own or control multiple businesses in New Hampshire and Massachusetts, including Teacher Tammy (a/k/a Teacher Tammy’s), Optimized Operations, and Business Done Right. However, these companies had no operations and served no business purpose, according to the U.S. Attorney in New Hampshire.

He submitted fraudulent applications for Paycheck Protection Program loans from private lenders, Economic Injury Disaster Loans from the Small Business Administration, and pandemic relief grants from the New Hampshire Governor’s Office for Emergency Relief and Recovery and the Massachusetts Growth Capital Corporation.

The press release also says Dodge took the Social Security number of a minor to apply for a Employer Identification Number from the IRS for a fake company called Consulting Services.

Dodge used fake supporting documents in the applications, according to the press release.

For example, on May 4, 2020, David Dodge applied for a $39,355 PPP loan for Optimized Operations. He provided a “Payroll Report” purporting to show that Optimized Operations had a monthly payroll of approximately $46,000 through December 2020, seven months into the future.

Other fake documents included a doctored Limited Liability Company certificate showing that Optimized Operations was incorporated in Massachusetts in June 2016, when it did not exist on paper until May 2020. David Dodge also provided fraudulent tax documents showing that Optimized Operations had five employees paid $45,000 each quarter.

Because the programs Dodge sought to defraud have safeguards in place, the majority of the money he requested was denied and the applications flagged for fraudulent behavior. Dodge did receive a payout of $219,323.34.

They misused the fraudulently obtained money, including to purchase a hot tub and a diamond ring, according to the U.S. attorney.

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