Charles J. Jones, COVID-19 Disaster Loan Program Fraud, Illinois 2020

State: Illinois
Category: Fraud &#038; Financial Crimes
Source: <a href="https://www.justice.gov/usao-cdil/pr/two-central-illinois-men-indicted-charges-fraud-related-small-business-administration" style="color:#cc0000;" target="_blank" rel="nofollow noopener">DOJ Press Release ÃƒÂ¢Ã¢â‚¬Â Ã¢â‚¬â€

Charles J. Jones, 25, of Springfield, Illinois, has been accused of fraud in connection with the Small Business Administration’s COVID-19 disaster loan program. According to a grand jury indictment, Jones submitted a false application for an Economic Injury Disaster Loan in June 2020 for a business called ‘Just Like Jilla,’ which did not exist.

The indictment alleges that Jones made false representations on the loan application, including that the business had been in operation for over a year, employed 11 people, and had gross revenues of $1.2 million. Jones also allegedly denied having been convicted of a felony within five years of completing the loan application.

The Small Business Administration wired approximately $160,000 in loan proceeds into Jones’ bank account. Jones is also charged with four counts of wire fraud.

A second indictment alleges that Peter Garrido-Baez, 44, of Beardstown, Illinois, applied for and received two SBA COVID-19 related loans for ‘Garrido Apartments.’ After receiving the loan proceeds, Garrido-Baez allegedly transferred $72,500 into a different account at a local bank and then had $79,800 wired from the local bank to a bank account in the Dominican Republic.

The applicable loan agreement prohibits using any portion of the loan proceeds to relocate outside the disaster area. Garrido-Baez allegedly wired the money to the Dominican Republic for construction and building apartment buildings.

Garrido-Baez is also charged with seven counts of wire fraud and one count of money laundering. Both men have been issued a summons to appear on January 5, 2021, for arraignment in federal court in Springfield.

If convicted, the maximum statutory penalty for fraud in connection with major disaster or emergency benefits is up to 30 years in prison. The maximum penalties for both mail fraud and money laundering is up to 20 years in prison.

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