Broken Arrow man pleads guilty for PPP loan fraud
Source: U.S. Attorney’s Office, NDOA
A man who received $20,665 from the Small Business Administration after fraudulently applying for a Paycheck Protection Program loan pleaded guilty Tuesday in federal court, said U.S. Attorney Clint Johnson.
Malcolm Andre Jones, 31, of Broken Arrow, pleaded guilty to wire fraud. In his plea agreement, Jones admitted that he devised a scheme to defraud the Small Business Administration of the funds.
Specifically, Jones knowingly submitted a false and fraudulent Paycheck Protection Program loan application to Capital PF, a Small Business Administration approved lender.
The loan application Jones prepared and submitted falsely claimed that he operated a landscaping business and that all loan proceeds would be used for business-related purposes. Instead, when he obtained the funds in March 2021, he used the loan proceeds for miscellaneous non-business expenses, including paying bills and purchasing a couch and an automobile.
Jones further fraudulently submitted a forgiveness application for the loan and was granted forgiveness based on his submission.
The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection- Office of Inspector General and the Small Business Administration-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Richard M. Cella is prosecuting the case.