Christopher Lee Carroll, Bank Fraud & Clean Air Act Violations, Missouri 2023

A jury on Friday found Christopher Lee Carroll, 54, guilty of all the charges he faced in trial this week, including bank fraud, Clean Air Act violations, and threatening witnesses. The jury in U.S. District Court in St. Louis convicted Carroll of three counts of bank fraud, three counts of making false statements to a financial institution, one count of conspiracy to violate the Clean Air Act, 13 violations of the Clean Air Act, and two counts of threatening a witness.

Carroll's company, Whiskey Dix Big Truck Repair LLC, was also found guilty of 16 Clean Air Act violations. The jury found Carroll responsible for nearly $3,000,000 in pandemic relief loan fraud, poisoning the air through Clean Air Act violations, and then threatening witnesses to try and cover up his crimes, said U.S. Attorney Sayler A. Fleming. “He lined his pockets with money that was supposed to save jobs during the COVID-19 pandemic. He used more of the loan money to buy land and a fleet of trucks so he could start a trucking company, and then had the emissions control equipment removed to save on fuel costs.”

Carroll did not use the money to pay dozens of employees who were out of work, or keep their health insurance in effect, Assistant U.S. Attorney Gwendolyn Carroll said during closing arguments Friday. Roughly two weeks later, Carroll began buying trucks and land to start a trucking company. Carroll and his partner, George Reed, submitted a false and fraudulent application for a $1.2 million Paycheck Protection Program loan in April of 2020 for the time share exit company they ran, Square One Group LLC.

Reed, 69, pleaded guilty to bank fraud in September of 2022 and admitted fraudulently applying for, obtaining, and using the two PPP loans. He admitted that the company failed to pay a “significant number” of employees, despite their receipt of the loans that would have allowed them to do so. His plea also says Carroll terminated the health insurance benefits of at least 17 employees.

The FBI and the U.S. Environmental Protection Agency Criminal Investigation Division investigated the case. Assistant U.S. Attorneys Gwendolyn Carroll and Kyle Bateman are prosecuting the case.

According to evidence and testimony from the trial, Carroll submitted a loan application that contained false statements, including that his wife owned the company. Carroll and Reed submitted loan applications in their spouses’ names to conceal Carroll’s status as a paroled felon, which would have precluded his company from receiving PPP funds.

The jury found Carroll guilty of nearly $3,000,000 in pandemic relief loan fraud, including bank fraud and Clean Air Act violations. The case is set to continue with sentencing. Carroll and his company face a significant prison sentence and mandatory restitution. We will seek a significant prison sentence for this defendant and his company, said U.S. Attorney Sayler A. Fleming. “Any sentence, by law, will include mandatory restitution.”

“Christopher Carroll's company was granted millions of dollars from the PPP program but laid off dozens and dozens of its employees,” said Acting Special Agent in Charge Chris Crocker of the FBI St. Louis Division. “To add insult to injury, Carroll wouldn't have even qualified for the funds if it weren't for his employees. We thank the jury for holding Carroll accountable for fleecing the PPP program, which was designed to help people who were out of a job through no fault of their own during the pandemic.”

We will continue to follow this case and bring you updates as more information becomes available.

Defendant Name: Christopher Lee Carroll

Exact Criminal Charges: Three counts of bank fraud, three counts of making false statements to a financial institution, one count of conspiracy to violate the Clean Air Act, 13 violations of the Clean Air Act, and two counts of threatening a witness.

City and State: St. Louis, Missouri

Date: Friday (Month/Day/Year)

Sentence or Outcome: Guilty verdict, significant prison sentence and mandatory restitution pending.

Dollar Amounts: Nearly $3,000,000 in pandemic relief loan fraud, $1.2 million Paycheck Protection Program loan, $1.6 million loan.

Source: https://www.justice.gov/usao-edmo/pr/missouri-man-found-guilty-pandemic-fraud-witness-tampering-clean-air-act-violations