Bowling Green, KY – In a shocking case of COVID-19 Economic Injury Disaster Loan (EIDL) funds misappropriation, Ryan Turtle of Memphis, TN, has agreed to pay the United States $1,731,200 to resolve allegations that he unjustly enriched himself by misappropriating COVID-19 EIDL funds obtained from the Small Business Administration (SBA) during the COVID-19 pandemic.
The civil settlement was announced by Michael A. Bennett, United States Attorney for the Western District of Kentucky.
"COVID-19 EIDL funds were intended to help small business owners during difficult economic times and taking advantage of this program will not be tolerated," said U.S. Attorney Bennett. "Our office is committed to investigating and recovering taxpayer monies that have been diverted or misused."
During the COVID-19 pandemic, the SBA provided COVID-19 EIDLs to small businesses to be used for "working capital." Turtle owned the Turtle Company, a Kentucky corporation, which operated Little Caesars franchises in Western Kentucky. On October 27, 2021, Turtle submitted an Amended Loan Authorization and Agreement with the SBA, in which he certified and promised that he would use the loan proceeds as "working capital" for his business as required by the Agreement.
Instead of using the loan proceeds as "working capital" for his business as required, the United States alleges that Turtle transferred the loan proceeds into various cryptocurrency accounts shortly after receiving them from the SBA. By failing to use the loan proceeds as required by the Agreement, the United States contends that Turtle unjustly enriched himself.
The claims resolved by this settlement are allegations.
Assistant U.S. Attorney, Matt Weyand, handled this matter for the United States.
Defendant Name: Ryan Turtle
Criminal Charges: Misappropriation of COVID-19 EIDL funds
City and State: Bowling Green, KY
Date: October 27, 2021
Sentence or Outcome: Agreed to pay $1,731,200
Dollar Amount: $1,731,200
Key Facts
- State: Kentucky
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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