ST. LOUIS – A St. Louis lawyer, John J. Diehl Jr., 60, has admitted to swindling the U.S. Small Business Administration out of $379,900 in a COVID-19 pandemic loan scheme. Diehl pleaded guilty in U.S. District Court to one count of wire fraud.
Diehl applied for an Economic Injury Disaster Loan (EIDL) on behalf of his law firm, the Diehl Law Group, claiming the funds were needed for working capital and payroll. However, he misused the funds for personal expenses, including payments to a country club, mortgages, and luxury car purchases.
On April 27, 2020, Diehl made an inappropriate $1,320.15 payment to a country club using EIDL funds. By June 9, 2020, he had transferred the remainder of the loan, $93,900, into his firm’s bank account, funneling some to personal accounts. Between June 10, 2020, and August 16, 2021, Diehl used the proceeds for unauthorized personal use, including payments on Tesla, Audi, Jeep cars, credit cards, a home mortgage, and more.
In March 2022, Diehl requested an EIDL loan modification, again misrepresenting the purpose of the funds. He transferred $50,039.55 to his retirement plan in September 2020. By April 12, 2022, he had obtained additional funds and continued his misuse until June 21, 2023.
In total, Diehl obtained $379,900 through his fraudulent activities. He is scheduled for sentencing on December 19, facing up to 20 years in prison and a fine of $250,000. His lawyer reported that he has repaid the funds to the United States Treasury.
The FBI investigated the case, with Assistant U.S. Attorney Hal Goldsmith prosecuting it.
RELATED: St. Louis Lawyer Pleads Guilty to Pandemic Fraud of $379,900
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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