Feds allege Springfield eating place proprietor fraudulently used PPP budget for house enhancements

Bourbon & Beale eating place is positioned at 2639 South Glenstone Ave.

The landlord of more than one Springfield eating places has been accused by way of the federal government of fraudulently the use of Paycheck Coverage Program cash for house development tasks.

John Michael Felts − whose eating places come with Bourbon & Beale, Sizzling Cluckers and Taco Habitat − is accused in a lawsuit filed closing week by way of the government of the use of the mortgage cash, received beneath greater than a dozen other identities and firms, to buy and support different homes. Federal officers have no longer filed legal fees however are requesting forfeiture of 4 homes in Greene County.

Information display that Felts carried out for round a dozen PPP loans the use of a number of other firms, maximum of which “didn’t have workers and weren’t in operation on the time of software,” in step with court docket paperwork. He additionally carried out for round 13 loans the use of “synthesized or fabricated identities.” The alleged enhancements achieved with the mortgage cash weren’t eligible or licensed beneath the phrases of this system, which was once supposed to assist business-owners in proceeding worker paychecks throughout the COVID-19 pandemic.

Felts has allegedly used upwards of masses of hundreds of bucks in general to finance enhancements on a number of homes each without delay and not directly, in step with federal officers.

In a single case, the April 2020 PPP software for Diagnostic Apparatus Inc., filed by way of a “Peter Gollan,” mentioned that it had 55 workers and a mean per 30 days payroll of $330,000. Officers declare that was once “falsely represented.” Mortgage proceeds of greater than $869,000 have been allegedly later deposited beneath the corporate’s title. Some other software, 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, individuals of the Inner Income Carrier finished seek warrants for info and pieces regarding Mr. Michael Felts enterprise dealings with a person out of San Antonio, Texas,” McGull mentioned. “Mr. Felts has retained prison recommend to care for this subject and can’t remark additional regarding this investigation.”

A spokesperson for the U.S. Legal professional’s Place of job declined to touch upon if legal fees could 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, virtually 10,000 price $742 million have been forgiven. Federal officers during the last two years have aimed to trace outstanding circumstances of fraud involving the mortgage cash.

This text at first seemed on Springfield Information-Chief: Feds accuse Springfield restaurateur of the use of PPP mortgage for renovations

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