In 2020 the government offered Paycheck Protection (PPP) loans to aid in pandemic relief. These loans were guaranteed by the Small Business Administration (SBA) under the CARES Act. While many businesses and medical professionals in the Middle Tennessee area and across the U.S. needed PPP loans to stay afloat during 2020 and into 2021, there were some who fraudulently took advantage of these loans, leading to criminal convictions.
Wisconsin man pleas guilty to PPP fraud
A 46-year-old Wisconsin man pleaded guilty to bank fraud after admitting that he sought more than $1.2 million in PPP loans on behalf of eight different businesses. His applications made several false and misleading claims about the businesses’ payroll costs. Banks approved these applications and funded more than $1 million in PPP loans. The man then had others send him part of the funds and used these funds for personal expenses. The man was received a 57-month prison sentence.
The scope of PPP fraud
Since the PPP began, the Fraud Section pursued prosecution of fraud cases involving the PPP. Over 100 defendants in over 70 criminal cases have since faced prosecution for PPP fraud. More than $65 millions in fraudulently obtained cash proceeds as well as real estate and luxury items purchased with the fraudulent funds have been seized.
Learn more about fraud crimes
PPD fraud can lead to serious consequences as this recent example shows. Those in Middle Tennessee who have questions about fraud crimes may find our firm’s webpage on white collar crimes to be of interest.