Five Springfield residents accused of defrauding Paycheck Protection Program
A group of five Springfield residents were indicted by a federal grand jury Tuesday on charges of allegedly defrauding the Paycheck Protection Program.
The program was designed to help small businesses cover COVID-19-related expenses.
Sean Jackson, 32; Richard Lawuary, Charles Walker III and Shawntelle Lynn, all 31; and Randi Lewis, 34, were each charged with two counts of wire fraud alleging they defrauded lenders authorized to provide PPP loans, according to a release from the U.S. Attorney's Office for the Central District of Illinois.
Each allegedly submitted false information to various lenders, who in turn provided them with money based on that information.
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According to the indictments, Lewis applied for two loans in March and April, 2021, saying she was the operator of a copy shop. The lender, Harvest Small Business Finance LLC, provided her with two payments of $20,833 each, adding up to $41,666, which she used on expenses not allowed through PPP.
Walker, according to the indictments, applied for his loan in April, 2021, saying he worked in the insurance business. Cross River Bank of New Jersey was his lender, providing him with $19,050 that he used on prohibited expenses. He was out on bond for unrelated federal charges at the time of the loan request.
Lynn, according to the indictments, applied for her loan in April and May, 2021, saying that she owned a women's and children's clothing business. Her lender, Miami-based Benworth Capital, provided her with $20,833 used for prohibited expenses. Like Walker, Lynn was also out on bond for unrelated federal charges.
Jackson applied for his loan in June, 2021, saying he ran a barbershop, according to the indictments. Harvest was his lender, providing him with $20,833 that he used on prohibited expenses.
According to the indictments, Lawuary also applied for his loan in June and like Jackson, claimed he had a barbershop. Harvest lent him $20,833 that was used on prohibited expenses.
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Each has been ordered to appear in federal court for individual arraignment hearings. Walker is set to appear in court Oct. 21 via video conference. Jackson, Lawuary, Lewis and Lynn are each set to appear Oct. 31.
The charges carry a maximum punishment of 20 years in prison with three years of supervised release and restitution.
This article originally appeared on State Journal-Register: Five Springfield residents accused of defrauding PPP
