Michigan Man Stole $850K in Pandemic Loans for Bills and Jetski
A man from Oakland County has pleaded guilty in a federal court for stealing close to $1 million in loan funds. The loan funs were intended to aid small businesses struggling during the COVID-19 pandemic. The funds were siphoned off for personal use, including the purchase of a jet ski. Ryan Carruthers, from Commerce Township, pleaded guilty to orchestrating a fraudulent scheme that managed to secure around $850,000. It was from two pandemic relief programs supervised by the Small Business Administration (SBA).
Carruthers pleaded guilty to a single count of wire fraud. U.S. Attorney Dawn Ison said in a news release that each dollar he stole was essentially a dollar denied to a genuine small business in dire need of assistance during the pandemic.
Taking Advantage of Taxpayer Money
“Our communities suffered during the pandemic, yet some sought to line their own pockets at the expense of the American taxpayer,” said Angie M. Salazar, HSI Detroit Special Agent in Charge. The events date back to April 2020 when Carruthers started submitting electronic loan applications. Each of these was in the names of supposed business entities he claimed to own. Over the next year, he submitted a total of 12 loan applications through the “Paycheck Protection Program” (PPP), which was a program overseen by the SBA. This initiative aimed to provide forgivable loans to businesses, incentivizing them to retain their employees amid the pandemic. Carruthers also submitted a loan application under the SBA’s “Economic Injury Disaster Loan Program” (EIDL). This program aimed to offer low-interest financing to businesses adversely affected by the pandemic.
Authorities highlight that these loan applications were riddled with falsehoods and deceitful information. In reality, the entities he claimed to own were mere shell companies existing only on paper, without actual revenue, employees, or ongoing operations. Despite this, Carruthers falsely claimed that each entity had a workforce of 3 to 15 employees. The numbers provided for the average monthly payroll in the applications were fabricated. As well as the intentions for how the funds would be utilized.
Carruthers managed to obtain approximately $851,963 through these 13 loans. This money was then diverted to pay off his mortgage, acquire a jetski, and cover various personal expenditures. The plea documents confirm that Carruthers used these to acquire funds for personal benefits fraudulently. His sentencing is scheduled for December.
