Texas PPP Loan Recipient Cops Luxury Sports Car Then Lands in Prison

Sharee B.

The PayCheck Protection Program was created in order to help businesses large and small recover from the economic effects of the Covid-19 pandemic. The program which currently provides up to $284 billion dollars in the third round of funding, has also been rife with fraud as people have taken advantage of efforts by the previous and current administration as a part of the CARES Act to keep the country afloat.

A former McKinney man has been charged with federal violations related to his alleged participation in a scheme to file fraudulent loan applications seeking millions of dollars in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act - Acting US Attorney Nicholas J Ganjei

The Department of Justice has brought charges against a Texas business owner who fraudulently obtained a series of loans through the Small Business Administration. The recipient of these loans, which totaled more than 1.9 million dollars, used the proceeds to fund a lavish lifestyle including a Lamborghini sports car, Rolex watches, and Ford pickup trucks.

The sentencing handed down for the crimes committed, which include money laundering and fraud, equates to over nine years in prison. This comes as the Department of Justice has worked diligently with the Covid-19 Fraud Enforcement Task Force, created by the Attorney General six months ago.

As a result of joint efforts with local law enforcement, more than $700,000 in fraudulent funds was able to be retained. However, this is only a fraction of the total amount of seizures that have been recovered since the task force's conception. To date, that number is a staggering $75,000,000 amid at least 150 convictions.

In March, another Texas man pleaded guilty to orchestrating a fraudulent scheme to obtain approximately $24.9m in PPP loans by submitting 15 fraudulent applications. - The Guardian

Current numbers show, more than 94 criminal cases have been successfully prosecuted in efforts with dozens of federal, state, and local agencies. As the PPP and EIDL programs continue to grow, fraud continues to be on the rise.

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