A Washington State physician is facing federal felony charges on allegations that he attempted to defraud the Paycheck Protection Program (PPP) of over $3 million.
The 41-year-old Seattle doctor is said by prosecutors to have submitted several applications for PPP loans to local lenders participating in the program, which is backed by the U.S. Small Business Administration (SBA). Investigators say he applied for the loans in the name of non-existent businesses, or businesses that were not eligible for the loans.
According to prosecutors, the defendant said the businesses for which he applied for funding had more employees than they actually had and had larger payroll expenses than they actually paid. They say he supported the applications with fraudulent tax documents and gave names of individuals who were not currently employed by the firms.
Altogether prosecutors say the defendant’s fraudulent loan applications sought over $3 million in PPP loans. He was taken into custody last week and charged in the Western District of Washington with one count of wire fraud and one count of bank fraud. His initial appearance on the charges was scheduled for later that day.