Loan Shark Gets 5.5 Years

⏱ 2 min read

Frank Hamilton, 55, of Simi Valley, California, is headed to a federal prison cell for 5.5 years after running a brazen loan fraud that bilked banks and the Small Business Administration out of over $6 million. Judge Wendy Beetlestone in Philadelphia delivered the 66-month sentence yesterday, along with a demand for full restitution of $6,093,024.90 and two years of supervised release.

Hamilton didn’t just dip a toe in the water – he allegedly masterminded the entire operation, pre-pandemic and through the COVID chaos. His crew filed false applications for standard SBA 7(a) loans. When the pandemic hit, they pivoted, hungry for the fast cash available through Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans.

Court papers paint Hamilton as a teacher, coaching his co-conspirators on forging loan documents and fabricating tax returns. He allegedly sourced “shelf companies”—zombie businesses bought for the sole purpose of creating a false front of legitimacy. The scheme systematically funneled loan money into the pockets of the fraudsters.

The PPP loans were a prime target. Hamilton’s crew tried to exploit the loan forgiveness rules, falsely claiming the funds went to payroll when they hadn’t. He and his associates systematically abused the pandemic relief programs designed to keep legitimate businesses afloat, lining their own pockets instead.