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CHICAGO - A federal grand jury in Chicago indicted two men for fraudulently obtaining over a half a million dollars in small business loans and grants meant for COVID-19 relief.
Two men from Cook County are facing 15 counts of wire fraud for allegedly fraudulently obtaining at least $742,000 in small business loans and grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The indictment was filed in February and unsealed earlier this week.
According to the indictment, beginning around March 2020, and continuing until around March 2021, Te Dora Brown, 43, of Palos Park, and Christopher Scott, 43, of Hazel Crest, exploited the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP).
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Brown is charged with 13 counts of wire fraud, and Scott is charged with 9 counts.
The men allegedly submitted numerous applications for loans to the SBA on behalf of fake businesses.
The applications allegedly had false information and misrepresentations about number of employees, gross revenues, payroll, operating expenses, type of business, and existence as companies with ongoing operations.
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Federal raid in Chicago suburb tied to Covid-19 loan fraud
A federal raid in the southwest suburbs has put two behind bars. They are facing felony charges of theft and loan fraud tied to Covid-19 relief money, and one of those defendants previously ran for state office.
The indictment alleges that Brown and Scott knew at the time that the fictitious entities through which they applied had no employees or payroll, and that they intended to use the loan funds for their personal use and benefit.
Brown and Scott were arraigned in federal court in Chicago on Wednesday, before Magistrate Judge Jeffrey Cole.
Each count of wire fraud is punishable by up to 20 years in federal prison.