David Smiley, Pandemic Loan Fraud, Missouri 2020

St. Charles County Man Admits Pandemic Loan Fraud

A man from O’Fallon, Missouri has admitted to fraudulently obtaining a $54,900 loan meant to aid businesses affected by the coronavirus pandemic.

David Smiley, 39, pleaded guilty in front of U.S. District Judge Ronnie L. White to a wire fraud charge. Smiley admitted that on July 8, 2020, he fraudulently sought and later obtained a $54,900 Economic Injury Disaster Loan through the federal Small Business Administration.

Smiley lied about the existence of a company, falsified that company’s gross revenue and falsely claimed that 13 employees worked there, his plea agreement says. He also listed his personal checking account as the business bank account.

Smiley admitted using the money for car payments, private school payments, to repair a Cadillac Escalade SUV and for cryptocurrency.

FBI investigators obtained and executed a seizure warrant on July 6, 2021, recovering $25,000 from Smiley’s checking account. He was indicted a month later.

The wire fraud charge carries a penalty of up to 20 years in prison, a $250,000 fine, or both. Smiley is scheduled to be sentenced November 16.

The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.

Smiley faces serious consequences for his actions, and his case serves as a reminder of the importance of honesty and integrity in business dealings.

As this case moves forward, the community can expect to see a resolution that holds Smiley accountable for his crimes.

Source: https://www.justice.gov/usao-edmo/pr/st-charles-county-man-admits-pandemic-loan-fraud