DETROIT — A Commerce Township resident has been slammed with charges for his alleged involvement in a $963,000 COVID-19 loan fraud scheme. Ryan Carruthers, 42, is accused of lying to secure pandemic relief funds meant for struggling businesses.
The United States Attorney Dawn N. Ison announced the charges against Carruthers, who stands accused of applying for 14 loans totaling nearly $963,000 under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan programs. The complaint alleges that Carruthers claimed his fictitious businesses, including “Cobra Kai Karate” and “Pure Juice Bar & Café,” had employees when no such workers existed.
According to court documents, Carruthers used the loan proceeds to pay off his mortgage and purchase a Sea-Doo personal watercraft. Thirteen of the loans were funded, resulting in disbursements of approximately $851,000.
‘Mr. Carruthers is charged with lying repeatedly to obtain loan funds intended to help businesses keep their doors open during the Covid-19 pandemic,’ said Ison. ‘My office is committed to prosecuting anyone who exploited our national crisis to enrich themselves.’ Angie M. Salazar, Special Agent in Charge of Homeland Security Investigations (HSI) Detroit Field Division, echoed the sentiment, emphasizing HSI’s dedication to investigating PPP fraud.
Carruthers faces up to twenty years in prison on the wire fraud charge. The case is being prosecuted by Assistant United States Attorney John K. Neal, with the investigation conducted by Homeland Security Investigations.
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Key Facts
- State: Michigan
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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