Background
Michael and Tiffany Fullerton, along with two others, fraudulently obtained over three million dollars from the Paycheck Protection Program by submitting six fake loan applications using defunct entities and stolen identities. Michael pleaded guilty to eleven counts and received a sentence of two hundred eighty-six months, while Tiffany was convicted at trial of conspiracy charges and sentenced to one hundred eight months. Both defendants appealed various sentencing enhancements and procedural rulings.
The court’s reasoning
The court reviewed the district court’s application of sentencing guidelines de novo and found no clear error in applying enhancements for sophisticated means, sophisticated laundering, leadership role, and obstruction of justice. The court determined that the defendants used fictitious entities and complex layering of transactions to conceal the fraud. Regarding the obstruction enhancement, the court found sufficient evidence that Tiffany procured Michael’s perjury through detailed planning and questioning. The court also rejected Tiffany’s motion for a new trial based on newly discovered evidence as immaterial and inadmissible. Finally, the court identified a clerical error in the judgment where a wire fraud conviction was listed despite an acquittal.
We AFFIRM the sentences and denial of the motion for a new trial and REMAND for correction of a clerical error in Tiffany’s judgment.
United States v. Fullerton, 24-50800 c/w No. 24-50829 (5th Cir. July 21, 2026)
What it means going forward
The ruling reinforces the Fifth Circuit’s strict application of sentencing enhancements for complex fraud schemes involving shell companies and money laundering layering. It clarifies that subornation of perjury can be established through circumstantial evidence of coordinated testimony planning without explicit instructions to lie.