The government is starting to make examples of people who misused or lied about needing COVID-19 relief funding. Recently, a woman from Oklahoma was charged with, and pleaded guilty to, Cares Act Main Street Lending Program fraud. Specifically to “bank fraud and money laundering related to a loan obtained through the Main Street Lending Program.”
Like most, the woman said she would only use the funds for working capital and payroll. But, as it turns out, she used the money to remodel her home and buy a fancy new car. In total, the woman faces 40 years in prison, $1.25M in fines, and $250K in restitution. While I doubt she will spend anywhere near that amount of time in prison, this should serve as a warning to anyone who took Cares Act Money. I would hate to say: I told you so!!!
Meanwhile, there were a lot of legitimate new start ups that couldn't get any help what-so-ever because they hadn't been in business long enough to show the loss on paper. Life savings lost -creative entrepreneurship lost - while this lady is remodeling bathrooms. Ugh.