$8.5 Million PPP Loan Recipient Went To Vegas, Accused Of Fraud According To DOJ
I have written about how to legitimately apply for and seek forgiveness of Paycheck Protection Program (PPP) loans for small businesses for a while now, but this time I’m writing about borrowers who went too far – way too far.
Recently, the U.S. Department of Justice arrested a Los Angeles man who concocted a scheme to raise $8.5 million in PPP loans that looked like they were based on pure fakery.
By using aliases to submit fraudulent applications on behalf of a number of companies, the fraudster applied for PPP loans. According to court documents, he made “numerous false and misleading statements about the companies’ respective business operations and payroll expenses.” He also submitted “fake and altered documents” in support of the applications, including “fake federal tax filings and employee payroll records.”
Where Did The Money Go?
What the fraudster did with the proceeds was a story in itself. Apparently, he paid a visit to a Las Vegas casino, spending hundreds of thousands of dollars. And he also made risky stock market bets.