Pay Raise | Arkansas | Covid-19 Fraud

Lying is generally not a good idea. And lying about salaries can have serious consequences, including job loss, damage to your reputation, and legal issues – all three problems which Fawaad Welch and Julia Youngblood now face due to false statements, including salary details, in their Economic Injury Disaster Loan (EIDL) and Main Street Loan Programs applications, resulting in over $6.1 million fraudulent proceeds.

Between May 2020 and October 2021, Welch and Youngblood applied for COVID-19 Pandemic Relief Loans using their business, Slipstream Creative, LLC, a Northswest Arkansas advertising and marketing company. The couple submitted applications riddled with false statements about the company’s assets, liabilities and intended use of the funds. They also omitted critical details, such as tax liabilities and their simultaneous applications to multiple loan programs. Youngblood signed all the bank agreements on behalf of the business, confirming that everything they stated in the applications was real and true. Welch even assured Generations Bank officials that he and Youngblood were only drawing modest salaries of $5,000 each per month, in compliance with federal restrictions.

Yet, within months of receiving $1.5 million in “working capital” EIDL funds, Welch transferred $1.3 million of that loan to the couple’s personal bank account. Pay raise! The couple then purchased a home in Florida using $445,000 of those loans funded by the U.S. taxpayer to help small businesses recover from the economic impacts of the COVID-19 pandemic. Similarly, within a month of receiving $3 million from the Main Street Loan Program, Welch transferred $950,000 in Main Street Loan Program funds out of the business and to himself. 

On April 28, 2 025, Welch pleaded guilty to wire fraud, while Youngblood pleaded guilty to misprision of a felony for her role in concealing the fraud.

Great job by the Federal Bureau of Investigation in this case.

Today’s Fraud of The Day is based on article “NWA business owners plead guilty to $6.1 million pandemic fraud scheme” published by KNWA News on April 28, 2025.

A Florida couple formerly of Northwest Arkansas pleaded guilty April 28 to defrauding Pandemic Relief Loan Programs. According to a press release, Fawaad Welch, 41, pleaded guilty to wire fraud and Julia Youngblood, 41, pleaded guilty to misprision of a felony related to the scheme.

According to court documents and statements made in court, between May 2020 through October 2021, Welch and Youngblood applied for Pandemic Relief Loan Programs through their Arkansas business, Slipstream Creative, LLC, a former Fayetteville advertising and marketing company.