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Idaho Springs Man Pleads Guilty to PPP Loan Scheme
Denver – Edward Baker Harrington, age 59, of Idaho Springs, pleaded guilty today to wire fraud and money laundering.
According to the plea agreement, from April 2020 through September 2021, Harrington submitted a number of fraudulent Paycheck Protection Program (PPP) applications to seven banks and one lender on behalf of business entities that he purportedly controlled. These PPP applications contained a number of false and fraudulent certifications and representations.
Harrington obtained more than $1,000,000 in PPP loans as a result of the scheme. He falsely represented that all PPP funds would be used to pay eligible business expenses, when, in fact, the proceeds were used for his personal benefit to purchase goods and property, including real estate and vehicles.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. The CARES Act created PPP, a program administered by the Small Business Administration that provided loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules.
A wire fraud conviction carries with it a prison term of up to 20 years and a fine of not more than $250,000. A money laundering conviction carries with it a prison term of up to 10 years and a fine of not more than $250,000.
This case is being investigated by Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorneys Nicole Cassidy and Martha Paluch.
The Attorney General established the COVID-19 Fraud Enforcement Task Force in May 2021 to marshal the resources of the government in partnership with agencies across the country to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud.
Key Facts
- State: Colorado
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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