(WWJ) A Michigan man is facing charges in connection with a wire fraud scheme involving more than $3 million in COVID-19 Paycheck Protection Program loans.
Basically, the feds say, he stole money that was supposed to go to small businesses that needed it to survive the pandemic.
Antonio George, of Novi, was charged in a criminal complaint, unsealed today upon his arrest, with one count of wire fraud in the Eastern District of Michigan.
The complaint alleges that George obtained around $3.1 million in PPP loans through fraudulent applications on behalf of 19 different companies.
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"The evidence indicates that 19 supposed companies appear to be fake, because the documentation submitted just didn't add up," U.S. Attorney Matthew Schneider told WWJ Newsradio 950's Sandra McNeill. "They were just a variety of different names, like Diva Nails, Bless My Grind, The Tax Wolf, SFX Transportation."
Schneider said George provided false and misleading documents about certain of the companies’ respective business operations and payroll expenses. As an example, the complaint alleges that George submitted identical wage information and employee count records for two separate companies. One of those companies has allegedly not been operational since 2015.
Schneider said a bank that received the suspicious applications called the FBI, which launched an investigation.
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"You know, there's not a lot of information about what these companies, even if they did exist, did," Schneider said. "And, in fact, when the agents went to one of the company locations, there was no sign that any such company even existed."
This is at least the fourth federal case involving a metro Detroit resident attempting to cheat the government out of money tied to COVID-19 assistance.
George, 44, made his initial appearance Tuesday before U.S. Magistrate Judge David R. Grand. He faces one count of wire fraud which carries a penalty of up to 20 years in prison.
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