⏱ 2 min read
A Tennessee man dined on COVID-19 relief cash meant for struggling small businesses. Paul Eugene Welborn Jr., 67, of Mountain City, Tenn., pleaded guilty to wire fraud in a Virginia court for misrepresenting his non-profit’s finances to snag a $159,900 CARES Act loan.
Welborn, the founder of Wings of Hope, applied for the loan in 2020, claiming his non-profit had $2 million in revenue and 12 employees. But in reality, Wings of Hope had little to no revenue and no employees.
On June 9, 2020, Welborn’s non-profit was awarded the loan, which included a $10,000 advance. He spent the cash on personal expenses like Omaha Steaks, QVC, HSN, Amazon, Macy’s, Best Buy, and various fast-food restaurants.
Welborn also transferred portions of the loan funds between his personal bank accounts.
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📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Virginia
- Location: VA
- Source: DOJ Press Release
