A Texas man is facing Federal felony charges on allegations that he fraudulently filed for $5 million in emergency payroll loans from the Small Business Administration (SBA).
According to investigators, the 32-year-old man filed applications for loans from two different banks claiming to have hundreds of employees on payroll working for his purported business. He allegedly copied names of strangers from the Internet and used them in his loan application, seeing to have these fictitious individuals’ payroll covered by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Investigators say one loan sought $5 million in relief under the PPP, as he claimed to have 400 workers together earning $2 million in wages. The second loan was smaller, as the defendant allegedly claimed a workforce of 100 and eventually obtained a payment from the bank of $500,000. In addition to allegedly inventing a fictitious workforce, Federal investigators say he supplemented the fraudulent applications with forged tax documents.
The defendant was charged last week in the U.S. District Court for the Eastern District of Texas in Texarkana with wire fraud, bank fraud, false statements to a financial institution, and false statements to the SBA.