The landlord of a couple of Springfield eating places has been accused by way of the federal government of fraudulently the use of Paycheck Coverage Program cash for house growth tasks.
John Michael Felts − whose eating places come with Bourbon & Beale, Scorching Cluckers and Taco Habitat − is accused in a lawsuit filed remaining week by way of the government of the use of the mortgage cash, acquired underneath greater than a dozen other identities and corporations, to buy and strengthen different houses. Federal officers have now not filed felony fees however are soliciting for forfeiture of 4 houses in Greene County.
Data display that Felts carried out for round a dozen PPP loans the use of a number of other corporations, maximum of which “didn’t have workers and weren’t in operation on the time of utility,” consistent with courtroom paperwork. He additionally carried out for round 13 loans the use of “synthesized or fabricated identities.” The alleged enhancements completed with the mortgage cash weren’t eligible or licensed underneath the phrases of this system, which used to be supposed to assist business-owners in proceeding worker paychecks throughout the COVID-19 pandemic.
Felts has allegedly used upwards of loads of hundreds of greenbacks in overall to finance enhancements on a number of houses each at once and not directly, consistent with federal officers.
In a single case, the April 2020 PPP utility for Diagnostic Apparatus Inc., filed by way of a “Peter Gollan,” stated that it had 55 workers and a mean per 30 days payroll of $330,000. Officers declare that used to be “falsely represented.” Mortgage proceeds of greater than $869,000 have been allegedly later deposited underneath the corporate’s identify. Some other utility, for White River Brewco, “falsely represented that the enterprise had 19 workers and a mean per 30 days payroll of $360,500.” A later deposit on the Central Financial institution of the Ozarks totaled simply over $900,000.
Felts’ legal professional, Abe McGull, equipped a commentary to the Information-Chief.
“On September 13, 2022, participants of the Interior Income Carrier carried out seek warrants for info and pieces regarding Mr. Michael Felts enterprise dealings with a person out of San Antonio, Texas,” McGull stated. “Mr. Felts has retained criminal suggest to deal with this topic and can’t remark additional regarding this investigation.”
A spokesperson for the U.S. Legal professional’s Administrative center declined to touch upon if felony fees can be pursued within the case.
Greater than 10,500 PPP loans have been licensed in Greene County throughout the pandemic, totaling $769 million. Of the ones loans, nearly 10,000 price $742 million have been forgiven. Federal officers over the past two years have aimed to trace outstanding circumstances of fraud involving the mortgage cash.
