Palm Beach County man gets two years in prison for PPP loan fraud

Julius Whigham II, Palm Beach Post
Updated ·2 min read
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A gavel sits atop a book.
A gavel sits atop a book.

FORT MYERS — A Palm Beach County man was sentenced to two years in federal prison Thursday following his guilty plea in January to submitting fraudulent applications for government loans intended to help struggling small businesses survive the COVID-19 pandemic.

Al Clint LaRoche, 43, was sentenced May 11 during a hearing before U.S. District Judge Thomas P. Barber in Fort Myers. He pleaded guilty in January to two counts of bank fraud after prosecutors alleged that he fraudulently obtained $1.1 million.

As part of his sentence, LaRoche was ordered to forfeit that money. Federal prosecutors alleged that he used the government loans for personal enrichment, including the purchase of a Mercedes-Benz SUV, jewelry, hotel and travel stays, and various retail purchases.

Businesses were required to use Paycheck Protection Program (PPP) loan proceeds for payroll costs, interest on mortgages, rent and utilities. The program allowed the interest and principal to be forgiven if the business spent the proceeds on those expenses within a set time period and used at least a certain percentage of the loan toward payroll expenses.

Congress passed the $2.2 trillion Coronavirus Aid, Relief, and Economic Security — or CARES — Act in March 2020. The economic stimulus bill was intended to help businesses suffering the economic effects caused by the COVID-19 pandemic.

Part of the bill created the Paycheck Protection Program, a Small Business Administration-backed effort providing small businesses with money to pay up to eight weeks of payroll costs, including benefits. The program ended in May 2021.

The U.S. Attorney General's office established the COVID-19 Fraud Enforcement Task Force in partnership with agencies across government to combat and prevent pandemic-related fraud. The Palm Beach County State Attorney's Office announced in March that it has formed a task force that will prosecute PPP fraud cases at the state level.

According to court documents, between April 2020 and April 2021, LaRoche submitted fraudulent first draw and second draw PPP applications to a financial institution based in Naples for his business, Bornwild LLC, based in suburban West Palm Beach.

Prosecutors said LaRoche's applications contained numerous false representations and certifications, including the company's average monthly payroll, number of employees, and assertions that the loan funds would be used for authorized purposes.

To qualify for each loan, LaRoche submitted fictitious quarterly federal tax returns that contained false representations about the business’s quarterly payroll expenses. The fraudulent representations caused the lender to approve and fund a first draw and second draw PPP loan, according to court documents.

Julius Whigham II is a criminal justice and public safety reporter for The Palm Beach Post. You can reach him atjwhigham@pbpost.com and follow him on Twitter at@JuliusWhigham. Help support our work:Subscribe today.

This article originally appeared on Palm Beach Post: Judge sends Palm Beach County man to federal prison for loan fraud