A man in Texas was sentenced for defrauding the federal government after applying for various PPP loans using false business names. He pleaded guilty to the charges in March and has to serve more than eleven years in prison for his money laundering and wire fraud crimes.
The Coppell man completed fifteen applications for PPP loans and sent them to eight different lenders, according to legal documents. He used fake business names on the applications to recover around $24.8 million. He claimed that his businesses spent hundreds of thousands of dollars on the payroll for the multiple employees at each one. However, none of his businesses paid wages at amounts close to what he claimed, and no employees were found to work there. Documents he used to support his claims contained bank statements from his supposed business operations and fabricated tax filings. He also named other individuals as authorized representatives of his businesses without gaining their consent.
Congress passed the Paycheck Protection Program so business owners impacted by the Covid-19 pandemic could afford necessary expenses. Applying for a loan requires completing paperwork and providing proof of losses due to the pandemic. It’s supposed to provide relief to small business owners struggling to keep their businesses afloat. The program forgives the interest and principal on these loans as long as the recipient uses the money within a specific period on expenses, such as rent, utilities, payroll, and other business costs.
Unfortunately, some people have taken advantage of this program and used the loan for personal expenses. The convicted Coppell resident received over $17 million from the PPP fund and used the money for personal gain instead of for his alleged businesses. He reportedly bought several homes in Texas, a fleet of luxury cars, and paid off mortgages on other homes in California. He also transferred millions of dollars from his loans internationally.
After pleading guilty, the convicted many agreed to forfeit over $9 million in fraudulent loans seized by the government and his six luxury vehicles, eight homes, and other property purchased with the funds paid by the PPP program. He also has to pay $17,284,649.79 in restitution along with serving an eleven-year prison term.
Contact Rosenthal Kalabus & Therrian
If you were charged with wire fraud, money laundering, or another white-collar crime in Texas, do not hesitate to contact Rosenthal Kalabus & Therrian immediately. You have a right to legal representation when you face your charges in court.
We know your future is on the line and will fight hard to get your sentence reduced or the entire case dismissed. We believe that everyone deserves the chance to defend themselves against the charges they face and secure their freedom. We will remain in your corner and be your advocate, so you’re not alone in this complicated legal battle.
If you’re facing charges for a white-collar crime, contact Rosenthal Kalabus & Therrian at (972) 369-0577 for a free consultation today. We can review your case and determine the available options to prove your innocence or reach as favorable an outcome as possible.