Elgin Restaurateur Accused of $176K COVID Loan Scam

CHICAGO – Melissa Turasky, 43, of Lake in the Hills, Ill., is facing federal charges after allegedly scamming the Paycheck Protection Program (PPP) out of $176,822. The owner of the now-defunct Gifford’s Bar and Restaurant, formerly Gifford’s Kitchen and Social in Elgin, is accused of fabricating payroll and expense figures to secure a loan her business wasn’t entitled to.

According to a federal indictment unsealed Thursday, Turasky’s restaurant was already belly-up by early March, evicted from its location and with all employees terminated, yet she still applied for and received PPP funds. The scheme allegedly involved submitting a fraudulent loan application to a bank, inflating the restaurant’s operational status to falsely demonstrate continued payroll and expenses. This allowed her to pocket the $176,822 intended to keep businesses afloat during the pandemic.

U.S. Attorney for the Northern District of Illinois, John R. Lausch, Jr., made it clear this isn’t just about one bad actor. “The Paycheck Protection Program was designed as a lifeline for small businesses struggling to survive the COVID-19 pandemic,” Lausch stated. “Our office is committed to working with our law enforcement partners to root out abuse of the important relief programs established under the CARES Act.” The investigation was a joint effort between the U.S. Attorney’s Office, the U.S. Secret Service Chicago Field Office, and the Small Business Administration.

The CARES Act, passed in March, unleashed billions in emergency funds, including the PPP, offering low-interest loans with potential forgiveness if funds were used for payroll, rent, mortgages, and utilities. The program hinged on businesses proving legitimate need and responsible spending, a condition Turasky allegedly ignored. The indictment details how Turasky misrepresented Gifford’s financial health to qualify, knowing full well the restaurant was already defunct.

Turasky has been indicted on one count of bank fraud and one count of making false statements to a financial institution. If convicted, she faces a maximum sentence of up to 30 years in federal prison on each charge. However, the indictment serves only as an accusation, and Turasky is presumed innocent until proven guilty beyond a reasonable doubt. Assistant U.S. Attorney Alexandra Morgan is prosecuting the case. Arraignment details have not yet been released.

Federal officials are urging anyone with information about COVID-19 related fraud to come forward. The Department of Justice’s National Center for Disaster Fraud Hotline can be reached at 866-720-5721, or reports can be filed online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. This case serves as a stark reminder that those who exploit crisis for personal gain will be held accountable.