Florida resident admits guilt in million-dollar loan fraud case

On Behalf of | Oct 18, 2022 | White Collar Crime

Fraud can take many forms and the individuals who commit this white-collar crime often create or discover a variety of channels through which to filter funds, such as creating false companies or filling out fraudulent loan applications under various aliases. Those found guilty can face a lengthy prison sentence and find themselves responsible for paying back thousands of dollars in misappropriated money.

Such is the case for one Florida man who pleaded guilty to using false loan applications to gain several million dollars in a lawsuit that involves the Paycheck Protection Program and may result in a 30-year prison sentence that stems from multiple charges.

Man used false documents to gain loans

The individual who committed this fraud used a variety of false documents, including fake payroll and tax papers to fill out PPP loan applications. The payroll papers included the names and social security numbers of supposed certain employees who worked for him. The array of information allowed him to apply for multiple loans across a variety of institutions.

Loans netted millions in cash

The approved loan application submitted by the man in question resulted in nearly a dozen separate loans, which he used to make multiple purchases of expensive items, including a boat, a large diamond ring, several pieces of real estate, and investment stocks. A search of his property earlier in the year, performed by FBI agents, also uncovered a large amount of weapons ammunition.

A plea deal may reduce a prison sentence for the guilty party, which includes returning the money he gained via the loans and returning the property he purchased with it.

Loan fraud continues to occur more often as different types of business and personal loan opportunities become available. Those attempting to take out such loans may find themselves subject to increased security and background checks as a result.

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