A Beaumont man is facing Federal charges on allegations that he defrauded the Small Business Administration (SBA) by filing fraudulent loan applications in an attempt at obtaining over $10 million in loans from the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to investigators, the 30-year-old man made two fraudulent claims to two lenders for Payment Protection Plan loans. Per investigators, the applications were for payroll paid out to employees of a family-owned LLC, one asking for $4 million in loans and the other seeking $3 million. The claims stated that the firm employed 250 individuals, necessitating the funds.
However, investigators say the filings were filled with false information. They say there is no record of his firm taking in any earnings in last year’s fourth quarter or this year’s first quarter, and that the firm paid no wages in that time period either. Additionally, investigators say they discovered a handwritten note describing an investment strategy for $3 million, which was an amount identical to one of the two loans he sought.
The defendant faces a raft of fraud charges, including wire fraud, bank fraud, false statements to a financial institution, and false statements to the SBA. He was arraigned in U.S. District Court in Beaumont last week. No information was released regarding a possible plea to the charges.
The Law Offices of Bjorn Brunvand have been representing people charged with capital murder, felony drug charges, drunk driving, government fraud, and white-collar crimes for over a quarter century. Contact our office today to discuss your Tampa Bay-area state or federal charges.