NWA-based white collar crimes against Pandemic Relief Loan Programs results in quilty pleas from Florida duo

Fayetteville, AR – A Florida couple, previously residents of Northwest Arkansas, admitted guilt on April 28, 2025, in a scheme to defraud multiple Pandemic Relief Loan Programs. Fawaad Welch, 41, and Julia Youngblood, 41, entered guilty pleas before U.S. District Judge Timothy L. Brooks in Fayetteville.

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

Court documents reveal that between May 2020 and October 2021, the couple exploited their Fayetteville-based business, Slipstream Creative, LLC, an advertising and marketing firm, to secure funds through the SBA 7(a), Economic Injury Disaster Loan (EIDL), and Main Street Loan Programs. Welch submitted applications riddled with false statements about the company’s assets, liabilities, and intended use of the funds, which Youngblood then signed on behalf of the business.

The couple’s deception included omitting critical details, such as tax liabilities and their simultaneous applications to multiple loan programs. After securing $1.5 million in EIDL funds designated as “working capital” in October 2021, Welch siphoned $1.3 million into their personal bank account.

Using $445,000 of these funds, they purchased a home in Florida. Similarly, after receiving $3 million from the Main Street Loan Program, Welch transferred $950,000 to himself within a month, despite assuring Generations Bank officials that he and Youngblood were only drawing modest salaries of $5,000 each per month, in compliance with federal restrictions.

The plea agreements hold Welch and Youngblood accountable for an intended loss ranging from $3.5 million to $9 million. Following their pleas, the U.S. Probation Office will prepare a presentence investigation report.

Welch faces up to 20 years in prison, while Youngblood could serve up to three years. Both will face supervised release, fines, and restitution, with Judge Brooks to determine their sentences based on U.S. Sentencing Guidelines and statutory factors.

U.S. Attorney David Clay Fowlkes announced the plea hearings, emphasizing the government’s commitment to combating fraud. The case was investigated by the Federal Bureau of Investigation, the Office of Inspector General for the Federal Reserve Board and Consumer Financial Protection Bureau, and the Special Inspector General for Pandemic Relief. Assistant U.S. Attorney Ben Wulff is prosecuting the case.

Sentencing dates for Welch and Youngblood will be scheduled later, pending the completion of the presentence report.