Ex-Wilmington officer pleads guilty to getting pandemic loan to pay workers he didn't have
A former Wilmington police sergeant has pleaded guilty to fraudulently obtaining a pandemic loan claiming he needed it to pay employees he didn't have at his personal fitness business he operated out of his home in Bear, according to court documents obtained by Delaware Online/The News Journal.
Michael Coleman, 43, pleaded guilty to one count of bank fraud on Wednesday afternoon.
"Mr. Coleman was a public servant who took federal funds from a public program that was meant to provide financial support to struggling businesses during a global pandemic when he did not qualify for those funds," U.S. Attorney for the District of Delaware David C. Weiss said in a statement. "My office, in partnership with our federal, state and local law enforcement partners, will continue to identify and prosecute individuals who illegally obtained [Coronavirus Aid, Relief, and Economic Security] CARES Act funding."
A Wilmington police spokesman declined to comment on Coleman's plea.
Coleman, who claimed in a police recruitment video that he'd played in the NFL for about three years, joined the Wilmington Police Department in 2007. His last day as a member of the department was Oct. 6 — 11 days before he was federally charged.
He faces up to 30 years in prison when a federal judge sentences him. A sentencing date has not been set.
What happened
Coleman applied for a federal Paycheck Protection Program on April 9, 2021, claiming he needed it for his personal fitness business. The business, Emitt LLC, was run out of his home in Bear.
In applying for the loan intended to help businesses keep their workforce employed during the COVID-19 crisis, Coleman stated he employed 10 people with an average monthly payroll of $60,000.
TD Bank approved the loan and deposited $150,000 into a business checking account the following month.
In October 2021, Coleman submitted an application asking for the full amount of the PPP loan to be forgiven. PPP loans a eligible for full forgiveness if the business meets certain criteria, including if the proceeds have been spent on payroll or at least 60% of those proceeds are spent to cover payroll costs.
The loan, which included the $150,000 in principal and more than $600 in interest, was forgiven.
Following an investigation by FBI agents, it was learned that Coleman's business did not have 10 employees or a monthly payroll of $60,000.
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This article originally appeared on Delaware News Journal: Former Wilmington police officer pleads guilty to bank fraud
