SPRINGFIELD, Mo. – Brian Ruth, Sr., 47, of Deepwater, Missouri, learned today that stealing half a million dollars in COVID-19 relief funds comes with a hefty price. Ruth was sentenced to nine years in federal prison without parole by U.S. District Judge Roseann Ketchmark, a sentence reflecting the brazen scope of his Paycheck Protection Program (PPP) fraud.
The court didn’t stop at prison time. Ruth was ordered to pay a $15,000 fine, $522,765 in restitution to the Small Business Administration – good luck with that – and forfeit a cool $336,000 to the government. He was immediately hauled off to begin serving his sentence, a swift end to a scheme built on lies and fueled by greed. Ruth pleaded guilty on May 5, 2021, to one count of wire fraud and two counts of money laundering.
The feds say Ruth applied for and received three PPP loans totaling $522,765 in May and June 2020, using three separate business entities as fronts. Each application was riddled with false statements and phony documents. This wasn’t his first rodeo; Ruth was convicted in 2018 for filing false tax returns, a detail he conveniently omitted on his PPP applications, claiming he hadn’t been convicted of a fraud offense in the last five years. The businesses he claimed were operational and employing people in February 2020? Nonexistent, according to investigators.
Ruth didn’t just stash the cash. He funneled the fraudulently obtained funds directly into his bank accounts, then blew it on a lavish lifestyle. Law enforcement seized five of Ruth’s bank accounts, hoping to recover some of the stolen money, but found a pathetic total of less than $6. Within five months, it was all gone. The proceeds went towards gambling, real estate purchases, and a fleet of muscle cars: a 2016 Cadillac, a 2020 Dodge Charger, and a 2017 Dodge Challenger. He even traded the Cadillac and Charger – plus $27,415 in cash – to get the Challenger.
This wasn’t a one-time lapse in judgment. Court documents paint a picture of a career criminal. Ruth boasts a rap sheet stretching back decades, with prior convictions for 10 felonies and 11 misdemeanors, including stealing, bad checks, identity theft, violating protection orders, and even immoral conduct with a minor. He’s been arrested or charged with an additional 23 felony and 26 misdemeanor offenses. The man hasn’t spent a single year of his life without being arrested or convicted of *something*. This PPP scam was just the latest chapter in a long, sordid tale.
Assistant U.S. Attorney Patrick Carney prosecuted the case, with the investigation conducted by IRS-Criminal Investigation. They managed to untangle the web of lies and bring Ruth to justice, but recovering the stolen funds will likely prove to be a much harder battle. This case serves as a stark reminder that even during a national crisis, there are those who will exploit the system for personal gain.
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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