Detroit Man Admits $590K COVID Loan Scam, Splurged on Caddys

DETROIT, MI – Darrell Baker, 56, of Detroit, admitted today to a brazen scheme to defraud the federal government out of $590,000 in COVID-19 relief funds. Baker pleaded guilty to one count of bank fraud and one count of money laundering, a clear signal that the Grimy Times will continue to follow this case. The scheme involved a fraudulent application for a Payroll Protection Program (PPP) loan, intended to keep American businesses afloat during the pandemic.

According to court documents, Baker claimed his company, “Motorcity Solar Energy, Inc.”, had 68 employees and a $2.8 million payroll in 2019. A complete fabrication. The company was a ghost, with no employees, no payroll, and no legitimate business operations. Baker knowingly submitted these lies to Customers Bank in Pennsylvania, securing the $590,000 loan. U.S. Attorney Matthew Schneider vowed his office “has no tolerance for frauds affecting programs designed to help our economy survive the Covid-19 pandemic.”

The feds didn’t let Baker enjoy his ill-gotten gains for long. While he managed to siphon off approximately $172,000 before his own bank flagged the suspicious activity and froze the remaining funds, the damage was done. Baker wasted no time turning the stolen cash into luxury items: two Cadillac Escalades, a Dodge Charger, and a Hummer. The vehicles will be forfeited as part of the plea agreement. Steven M. D’Antuono, Special Agent in Charge of the FBI in Michigan, stated the investigation secured the funds “for the people that need it most, not for the fraudsters like Mr. Baker.”

The scheme unraveled quickly, but not before Baker had a brief taste of high living. The government also secured a money judgment of $172,484.40 against Baker, representing the portion of the loan he successfully pilfered. The SBA’s Office of Inspector General, led by Hannibal Mike Ware, played a key role in the investigation, highlighting the collaborative effort to combat pandemic-related fraud. This wasn’t just about money; it was about stealing from a lifeline meant for struggling Americans.

Assistant U.S. Attorney John K. Neal is prosecuting the case, and the investigation was a joint effort between the FBI and the SBA-OIG. Baker is scheduled to be sentenced on January 14, 2021, before United States District Judge Laurie J. Michaelson. Expect a hefty sentence; the courts are sending a message that exploiting a national crisis for personal gain will not be tolerated. The Grimy Times will be there to report it.

This case serves as a stark reminder of the lengths to which some will go to exploit vulnerable systems. While the majority of Americans were grappling with the pandemic’s fallout, Baker was busy concocting a scheme to line his pockets. The swift action by federal authorities demonstrates a commitment to accountability and a dedication to protecting taxpayer dollars. Stay tuned to the Grimy Times for continuing coverage of this and other federal crimes.