Loan Shark Lands 5.5 Years in Federal Pen

⏱ 3 min read

Frank Hamilton, 55, of Simi Valley, California, is facing 5.5 years in federal prison after a Philly judge sentenced him yesterday for orchestrating a multi-million dollar loan fraud. Hamilton ran a scheme that skimmed over $6 million from banks, lenders, and the Small Business Administration (SBA), stretching from pre-pandemic loans all the way through the chaotic COVID relief programs.

Hamilton wasn’t building businesses, he was building scams. Prosecutors detailed how he coached a crew on how to falsify financial records – cookin’ the books with bogus tax returns and doctored documents. He also supplied “shelf companies,” pre-made businesses bought and sold to create the illusion of legitimacy for loan applications that were rotten to the core.

The operation was slick. Before COVID hit, they were milking regular SBA loans. When the feds flooded the country with EIDL and PPP money, meant to keep businesses alive during lockdown, Hamilton and his crew saw a golden opportunity. Those PPP loans, fully guaranteed by the government and potentially forgivable, were particularly enticing – a chance to pocket millions with little risk.

Hamilton didn’t directly own the fraudulent businesses. He was the architect, the guy providing the false paperwork and the know-how that allowed his crew to walk away with millions they never intended to repay. Judge Beetlestone didn’t just hand down the 66-month sentence; she also ordered Hamilton to pay back $6,093,024.90 in restitution.