Justin Allen Cunningham, Wire Fraud, Oregon 2022

A Gresham, Oregon man has been sentenced to 10 months in federal prison for stealing more than $77,000 in funds intended to help small businesses during the COVID-19 pandemic.

Justin Allen Cunningham, 41, was sentenced on March 2022 to 10 months in federal prison and three years’ supervised release. He was also ordered to pay $81,207 in restitution.

According to court documents, in 2021, Cunningham learned about the opportunity to procure Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small Business Administration (SBA) by submitting fraudulent loan applications on behalf of fake business entities.

The PPP program, originally authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress in March 2020, provided emergency financial assistance to American employers suffering the economic effects of the COVID-19 pandemic and resulting shutdowns.

To facilitate his scheme, Cunningham paid his friends for their help securing him a loan on behalf of a sole proprietorship he ran as a hobby: an online sneaker retailer called “JC shoe juice.”

Cunningham obtained an employer identification number from the IRS and opened an online business bank account. He provided this information to a friend who created bogus tax returns for Cunningham’s company and submitted a PPP loan application on his behalf.

The loan application falsely claimed that JC shoe juice had operated since 2015, had six employees, and generated more than $460,000 in gross income in 2019.

As a result of these false representations, Cunningham was issued a loan worth more than $77,000.

Source: https://www.justice.gov/usao-or/pr/gresham-man-sentenced-federal-prison-stealing-covid-relief-funds