Springfield man who owned Hot Cluckers, Taco Habitat pleads guilty to PPP loan fraud
Springfield restaurateur John Michael Felts pleaded guilty Friday after being accused of using Paycheck Protection Program money on unauthorized personal expenses. He owes nearly $10 million in restitution.
Court documents said Felts, who owned the now-defunct Bourbon & Beale, Hot Cluckers and Taco Habitat, pleaded guilty to wire fraud and must forfeit everything he purchased with the federal PPP funds — including a yacht, cars, jewelry, and property — that were intended to help small businesses stay afloat during the COVID-19 pandemic.
He faces up to 20 years in prison and a $250,000 fine.
Felts applied for a dozen PPP loans using several different companies under his ownership or control, according to investigators, who said that the man also applied for 13 PPP loans using fake identities. Felts is also said to have lied in the applications about his companies having employees and being operational when most of them weren't.
The IRS said it seized a 2020 Lexus RX350, two 2020 Ford Transit Vans, a 2020 Jeep Wrangler Rubicon, a 2018 Cadillac CT6, a 2021 Subaru Outback, a 2021 Galeon 470SKY yacht, a platinum wedding band, two silver bracelets, a white gold diamond bracelet, diamond stud earrings, two Rolex watches, a 1952 Jackie Robinson baseball card, a 1909-1911 Ty Cobb baseball card, and two Larry Bird, Julius Irving and Magic Johnson signed collectors cards.
Felts' restaurants ultimately closed following his Sept. 2022 crimimal charges.
More than 10,500 PPP loans were approved in Greene County during the pandemic, totaling $769 million.
This article originally appeared on Springfield News-Leader: Springfield restaurateur pleads guilty to PPP loan fraud
