Loan Shark Lands 5.5 Years in Federal Lockup

⏱ 3 min read

Frank Hamilton, 55, of Simi Valley, California, is headed to federal prison for 5 and a half years after admitting he helped a network of crooks fleece banks and the Small Business Administration out of $6.09 million. Judge Wendy Beetlestone handed down the 66-month sentence in Philadelphia yesterday, along with two years of supervised release and a hefty $6,093,024.90 restitution order.

The scheme started before the pandemic even hit, with Hamilton and his crew filing bogus applications for traditional SBA 7(a) loans. When COVID-19 exploded, they pivoted – shamelessly – to the Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP), scooping up millions in funds meant to keep legitimate businesses afloat. The playbook? Pure deception.

Hamilton wasn’t just along for the ride; he was the architect of the fraud. Court papers reveal he coached his partners on how to submit fake loan applications and even fabricated supporting documents – think phony tax returns and shell companies bought “off the shelf.” These ready-made companies gave the illusion of established businesses, masking the fraudulent nature of the applications. Hamilton didn’t lift a finger to keep people employed, just to line his and his co-conspirators’ pockets.

The PPP program, designed to actually help businesses cover payroll, became another target. Hamilton’s group aimed to fraudulently obtain loan forgiveness by claiming funds were spent on employee wages when they weren’t. The whole operation was a calculated betrayal of a program meant to ease economic hardship. Investigators say Hamilton profited handsomely, and now he’s trading California sunshine for a federal prison cell.