Coweta man pleads guilty in SBA loan fraud case
Source: U.S Department of Justice
A Coweta man who received $192,071 from the Small Business Administration after fraudulently applying for an Economic Injury Disaster Loan (EDIL) and a Paycheck Protection Program (PPP) loan pleaded guilty in federal court, announced U.S. Attorney Clint Johnson.
Scott Wayne Jarman, 49, pleaded guilty to two counts of false statement to the U.S. Small Business Administration.
Jarman faces a maximum statutory sentence of 5 years of imprisonment and a fine of not more than $250,000. A federal judge will determine appropriate sentences and restitution amounts at the defendants’ sentencing hearing, which will be scheduled by the court.
In his plea agreement, Jarman stated that he submitted false statements and documentation in loan applications to the Small Business Administration on behalf of the business SKT Concessions, which he claimed to own and operate. He further stated that he knowingly certified all the information in the applications and supporting documents were true and correct when he knew the information to be incorrect.
On March 30, 2020, Jarman made false representations about SKT Concessions when applying for an Economic Injury Disaster Loan, to include when the business was operational, gross revenue, annual operating expenses, cost of goods sold and number of employees. Jarman was able to secure a loan in the amount of $146, 171 based on the information submitted.
On April 24, 2020, Jarman made false representations about the business when applying for a Paycheck Protection Program loan, to include gross sales, cost of goods sold, gross profits, and car and truck expenses. As a result of the fraudulent information, he secured a loan in the amount of $45,900.
The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; Small Business Administration Office of Inspector General, and FBI conducted the investigation. Assistant U.S. Attorney Cymetra M. Williams is prosecuting the case.