Jason L. Hemingway, COVID-19 Loan Fraud, Missouri 2021

A Springfield business owner has pleaded guilty to fraudulently obtaining nearly $316,000 in Paycheck Protection Plan (PPP) loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Jason L. Hemingway, 47, applied for two PPP loans on behalf of his business, Principal Transfer Group, LLC, in February and April 2021. However, Hemingway falsified information on the applications, including inflating the number of employees and certifying the loans were for eligible business expenses.

Furthermore, Hemingway used the name of another individual without their knowledge or authorization to obtain the loans. This was reportedly due to his own poor personal credit history.

Hemingway pleaded guilty to one count of bank fraud and one count of money laundering. He has agreed to pay $316,062 in restitution and will forfeit to the government any property derived from the fraud and money laundering scheme, including a money judgment.

Under federal statutes, Hemingway is subject to a sentence of up to 30 years in federal prison for bank fraud and up to 10 years in prison for money laundering. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes.

A federal district court judge will determine Hemingway’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by IRS-Criminal Investigation and the Federal Bureau of Investigation.

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