The U.S. Attorney for Minnesota recently indicted a contractor for defrauding the Paycheck Protection Program (“PPP”). Given the broad uses of PPP loans, this contractor went pretty far out of bounds to get himself indicted.
The U.S. Attorney’s press release explained the underlying allegations.
Strike One: The contractor applied for a PPP loan well after his construction company had stopped operation.
Strike Two: The contractor submitted false employee and expense information, as well as fraudulent financial and tax documents.
Strike Three: The contractor used the PPP loan to purchase a new Harley-Davidson motorcycle and spent more than $1,000 on golf outings.
While the Paycheck Protection Program was a great benefit to contractors around the country, there are always a few that try to take advantage of the system. So, in case you were wondering, do not use your PPP loan proceeds to buy a Harley or a new set of golf clubs.