In a recent case of Covid-relief fraud, a local entrepreneur in Portland, Oregon has been sentenced to federal prison. Peter Peacock Blood, aged 59, was found guilty of fraudulently applying for and obtaining loans meant to assist small businesses during the pandemic. Blood was sentenced to 12 months in federal prison and has to pay over $590,000 in restitution to the U.S. Small Business Administration and Chase Bank. The entrepreneur submitted fraudulent applications for Covid-relief benefits on behalf of his solar energy companies, falsely claiming to have more employees and higher payroll expenses than he actually did. This case highlights the importance of prosecuting individuals who take advantage of relief measures meant to aid struggling businesses during challenging times.
Overview
In this article, we will discuss the case of Peter Peacock Blood, a Portland entrepreneur who was sentenced to federal prison for fraudulently obtaining loans intended to assist small businesses during the Covid-19 pandemic. We will provide an overview of the case, discussing the background of the Covid-19 pandemic and relief efforts, as well as the CARES Act. We will then delve into the fraudulent activities committed by Blood, including the false claims made in loan applications and the misuse of funds. Next, we will explore the legal proceedings, including the indictment, guilty plea, and sentencing. We will also highlight the various agencies involved in the investigation and prosecution of this case, such as the SBA Office of Inspector General, the U.S. Treasury Inspector General for Tax Administration (TIGTA), and the FBI. We will discuss the consequences faced by Blood, including his prison sentence, supervised release, forfeiture of funds, and restitution. Additionally, we will provide information on how individuals can report fraudulent activities to the National Center for Disaster Fraud (NCDF) Hotline and the NCDF Web Complaint Form. Finally, we will mention some related cases and provide contact information for the District of Oregon’s main office.
Introduction
In this article, we will be discussing the case of Peter Peacock Blood, a Portland entrepreneur who was recently sentenced to federal prison for engaging in fraudulent activities related to Covid-19 relief funds. Blood fraudulently obtained loans intended to provide financial assistance to small businesses affected by the pandemic. We will provide an overview of the case, discussing the background of the Covid-19 pandemic and relief efforts, as well as the relevant legislation, such as the CARES Act. We will also delve into the fraudulent activities committed by Blood, including the false claims made in loan applications and the misuse of funds.
Summary of the case
Peter Peacock Blood, a 59-year-old entrepreneur from Portland, Oregon, was sentenced to 12 months in federal prison and 5 years’ supervised release for fraudulently applying for and obtaining loans intended to help small businesses during the Covid-19 pandemic. He was also ordered to forfeit more than $600,000 to the United States and pay more than $590,000 in restitution to the U.S. Small Business Administration (SBA) and Chase Bank. Blood engaged in these fraudulent activities by submitting false applications for Covid-relief benefits on behalf of his two solar energy companies, Cycle Power Partners, LLC and Cycle Holdings, LLC. Despite his companies having only two or fewer employees, Blood claimed in his loan applications that he had 10 employees and an average monthly payroll exceeding $116,000. He received loans totaling more than $622,000 and misused the funds, spending over half on a custom truck and $14,000 on home improvements. Blood was indicted on two counts of loan fraud, to which he pleaded guilty. The case was investigated by the SBA Office of Inspector General, U.S. Treasury Inspector General for Tax Administration (TIGTA), and the FBI, and it was prosecuted by Assistant U.S. Attorneys Ryan W. Bounds and Meredith D.M. Bateman.
Background
The Covid-19 pandemic and relief efforts
The Covid-19 pandemic, caused by the novel coronavirus, has had a devastating impact on economies worldwide. In response to the economic repercussions faced by American employers, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 25, 2020. The CARES Act aimed to provide emergency financial assistance to businesses suffering the economic effects of the pandemic and resulting shutdowns.
The CARES Act
The CARES Act played a crucial role in providing relief to individuals and businesses affected by the Covid-19 pandemic. The legislation allocated funding for various initiatives, including the Paycheck Protection Program (PPP), which aimed to assist small businesses through loans that could potentially be forgiven if certain criteria were met. The PPP aimed to help businesses retain their employees and continue operating despite the economic challenges posed by the pandemic.
Purpose of the loans
The loans provided under the CARES Act, including those offered through the PPP, were intended to offer financial relief to businesses affected by the Covid-19 pandemic. The funds were meant to be used for essential purposes, such as paying employees, covering rent and mortgage payments, and meeting other critical operational expenses. It was crucial for applicants to accurately represent their financial situation and use the funds appropriately to ensure that the relief reached those who needed it the most.
The Fraudulent Activities
Blood’s solar energy companies
Peter Peacock Blood owned and operated two solar energy companies, Cycle Power Partners, LLC, and Cycle Holdings, LLC. These companies were involved in the renewable energy sector and aimed to provide sustainable solutions for businesses and households. However, Blood’s involvement in fraudulent activities tarnished the reputation of these companies and resulted in legal consequences.
False claims in loan applications
Blood engaged in fraudulent activities by submitting false claims in his loan applications. When applying for Covid-relief benefits, he falsely claimed that his companies, Cycle Power Partners, LLC, and Cycle Holdings, LLC, had 10 employees and an average monthly payroll exceeding $116,000. In reality, these companies had two or fewer employees, including Blood himself. By falsely inflating the number of employees and payroll amount, Blood secured loans for his companies that he was not eligible to receive.
Misuse of funds
Upon receiving the loans, Blood misused a significant portion of the funds. He spent more than half of the funds on a custom, military-style truck that he converted into a camper. Additionally, he used $14,000 of the loan funds for home improvements. Blood’s misuse of funds violated the intended purpose of the loans, which was to help businesses survive during the economic downturn caused by the pandemic.
Legal Proceedings
Indictment
On July 8, 2021, a federal grand jury in Portland returned an indictment charging Peter Peacock Blood with two counts of loan fraud. The indictment outlined the fraudulent activities committed by Blood, including the false claims made in loan applications and the subsequent misuse of funds. The indictment marked the beginning of the legal proceedings against Blood, which aimed to hold him accountable for his actions.
Guilty plea
On December 16, 2022, Peter Peacock Blood pleaded guilty to two counts of loan fraud. By entering a guilty plea, Blood acknowledged his involvement in the fraudulent activities and expressed remorse for his actions. The guilty plea served as an admission of guilt and played a pivotal role in the subsequent sentencing phase of the legal proceedings.
Sentencing
After pleading guilty to two counts of loan fraud, Peter Peacock Blood was sentenced to 12 months in federal prison and 5 years’ supervised release. In addition to serving a prison sentence, Blood was ordered to forfeit more than $600,000 to the United States. Furthermore, he was directed to pay over $590,000 in restitution to the U.S. Small Business Administration (SBA) and Chase Bank. The sentencing aimed to ensure that Blood faced the consequences of his fraudulent activities and repaid the funds that he had unlawfully obtained.
Investigation and Prosecution
SBA Office of Inspector General
The investigation into Peter Peacock Blood’s fraudulent activities was conducted by the SBA Office of Inspector General. The Office of Inspector General plays a critical role in preventing and detecting fraud, waste, and abuse within the SBA’s programs and operations. Its objective is to ensure the integrity and effectiveness of the agency’s programs, including those related to Covid-19 relief efforts.
U.S. Treasury Inspector General for Tax Administration (TIGTA)
The U.S. Treasury Inspector General for Tax Administration (TIGTA) was also involved in the investigation of Peter Peacock Blood’s case. TIGTA focuses on promoting the integrity and efficiency of the tax administration system. In this particular case, TIGTA played a vital role in uncovering the false claims made by Blood in his loan applications and identifying the misuse of funds.
FBI
The Federal Bureau of Investigation (FBI) was another agency involved in the investigation and subsequent prosecution of Peter Peacock Blood. The FBI is responsible for investigating a wide range of federal crimes, including those related to fraud and financial crimes. The FBI’s expertise and resources were instrumental in building a strong case against Blood and ensuring that justice was served.
Consequences
Prison sentence
As a result of his fraudulent activities, Peter Peacock Blood was sentenced to 12 months in federal prison. The prison sentence aimed to hold Blood accountable for his actions and serve as a deterrent to others who may contemplate engaging in similar fraudulent activities. Serving time in prison is a significant consequence of Blood’s actions and will have a lasting impact on his personal and professional life.
Supervised release
In addition to his prison sentence, Peter Peacock Blood was ordered to serve 5 years’ supervised release. Supervised release is a period of community supervision that follows a prison sentence. During this time, Blood will be subject to certain conditions and will be monitored by probation officers to ensure compliance with the terms of his release. Supervised release serves as an additional layer of accountability and aims to facilitate the offender’s reintegration into society.
Forfeiture of funds
As part of the sentencing, Peter Peacock Blood was ordered to forfeit more than $600,000 to the United States. Forfeiture involves the relinquishment of property or assets to the government as a result of criminal activities. In this case, Blood was required to forfeit the funds he had fraudulently obtained, ensuring that the unlawfully obtained money was returned to the rightful authorities.
Restitution
Peter Peacock Blood was also directed to pay over $590,000 in restitution to the U.S. Small Business Administration (SBA) and Chase Bank. Restitution involves the payment of funds to compensate victims for their financial losses resulting from a crime. In this case, the restitution was necessary to reimburse the SBA and Chase Bank for the loan amounts that Blood had unlawfully obtained. Restitution aims to restore the victims to their pre-crime financial state to the extent possible.
Reporting Fraudulent Activities
National Center for Disaster Fraud (NCDF) Hotline
If you have information regarding attempted fraud related to Covid-19, you can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721. The NCDF Hotline is dedicated to receiving and facilitating the investigation of allegations of fraud related to natural and man-made disasters, including the Covid-19 pandemic. Reporting fraudulent activities is crucial to preventing further harm and holding individuals accountable for their actions.
NCDF Web Complaint Form
In addition to the NCDF Hotline, individuals can also report fraudulent activities by filing a complaint through the NCDF Web Complaint Form. The online form provides a convenient and secure method for reporting suspected fraud related to disasters. By utilizing this form, individuals can provide detailed information about the fraudulent activities they have become aware of, aiding in the investigation and prosecution of such cases.
Related Cases
Former Portland Area Non-Profit Director Sentenced to Federal Prison for Stealing Covid Relief Funds
In a separate case, a former non-profit director in the Portland area was sentenced to federal prison for stealing more than $321,000 in federal funds intended to help small businesses during the Covid-19 pandemic. This case highlights the severity of the consequences faced by individuals who engage in fraudulent activities related to Covid-19 relief funds.
Gresham Man Sentenced to Federal Prison for Stealing Covid Relief Funds
Another case involved a Gresham, Oregon man who was sentenced to federal prison for stealing more than $77,000 in funds intended to assist small businesses during the Covid-19 pandemic. This case is another example of the legal ramifications faced by individuals who exploit relief funds intended to support struggling businesses.
Former Oregon Dentist Sentenced to Federal Prison for Stealing Millions in Covid-Relief Funds and Illegally Distributing Controlled Substances
In a particularly egregious case, a former Oregon dentist was sentenced to federal prison for attempting to steal more than $170 million in Covid-relief funds and illegally distributing thousands of doses of prescription drugs. This case serves as a reminder of the serious nature of fraud related to Covid-19 relief funds and the potential impact on public health and safety.
Contact Information
District of Oregon Main Office
The main office for the District of Oregon can be reached at the following address:
- District of Oregon Main Office: 1000 SW Third Ave Suite 600 Portland, Oregon 97204
For further inquiries or assistance, individuals can reach out to the main office of the District of Oregon.
For email inquiries or correspondence, individuals can contact the District of Oregon Main Office at the following email address: [Provide an email address for the District of Oregon Main Office]
Telephone
For immediate assistance or inquiries by phone, individuals can contact the District of Oregon Main Office at the following telephone number:
- Telephone: (503)727-1000
The District of Oregon Main Office is staffed to provide information and support to individuals seeking assistance or clarification relating to the case of Peter Peacock Blood or any other matters within their jurisdiction.
Conclusion
The case of Peter Peacock Blood serves as a stark reminder of the legal consequences that individuals face for fraudulent activities involving Covid-19 relief funds. Blood’s sentencing to federal prison, supervised release, forfeiture of funds, and restitution underscore the severity of the charges and the commitment of authorities to ensuring accountability. As the investigation and prosecution of such cases continue, it is crucial for individuals to report any suspected fraudulent activities to the appropriate authorities. By doing so, we can collectively safeguard the integrity of relief efforts and foster an environment of trust and accountability.