Eleven People Indicted In Multi-State PPP Fraud Case

Eleven defendants from Missouri, Kansas, Texas, and Washington have been indicted by a federal grand jury for their roles in a conspiracy that resulted in more than $220,000 in fraudulent Paycheck Protection Program (PPP) loans being issued under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The U.S. Attorney’s Office, Western District of Missouri, reports that the indictment was unsealed and made public on Thursday following the arrests of nine defendants.

The federal indictment alleges that each of the 11 defendants participated in a conspiracy to submit false and fraudulent applications for PPP loans from February 2021 to July 2022.

The conspiracy allegedly caused more than $220,000 in fraudulent PPP loans to be issued to ineligible borrowers, most of which were forgiven even though the funds were not used for the purposes specified in the PPP.