Man Who Applied for Covid-19 Relief Money for Fake Trucking Company Sentenced to Prison

Summary

Announcement that Joseph Alexander Casillas, a Leland, North Carolina man, was sentenced to six months in prison and three years of supervised release for conspiracy to commit wire fraud. According to court documents and other information presented in court, Casillas submitted two false and fraudulent PPP loan applications in March and April 2021, each requesting over $20,000. The applications falsely stated that Casillas was the sole proprietor of a longstanding trucking business with nearly $100,000 in annual payroll costs, and the announcement states the company did not exist. Casillas pleaded guilty on February 16, 2023, and was ordered to pay $92,734 in criminal restitution.

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Full text

RALEIGH, N.C. – A Leland, North Carolina man, Joseph Alexander Casillas, was sentenced today to six months in prison and three years of supervised release for conspiracy to commit wire fraud.  On February 16, 2023, Casillas pleaded guilty to the charge.  As part of the judgment, Casillas was also ordered to pay $92,734 in criminal restitution to the U.S. Small Business Administration (SBA).
According to court documents and other information presented in court, Casillas fraudulently applied for Paycheck Protection Program (PPP) loans in March and April 2021 in furtherance of a conspiracy to defraud the government.  The PPP program was created by the CARES Act in March 2020 to provide emergency financial assistance to American small businesses that were suffering the economic effects of the COVID-19 pandemic.  Through the PPP program, businesses could apply for forgivable loans to retain jobs and pay certain qualifying expenses.  In order to obtain a PPP loan, the business was required to make certain disclosures and certifications regarding its operations and acknowledge program rules.  The business was also required to provide documentation to support its alleged payroll expenses.
As part of the scheme, Casillas submitted two false and fraudulent PPP loan applications, each of which requested over $20,000.  In the applications, Casillas falsely stated that he was the sole proprietor of a longstanding trucking business that was incurring nearly $100,000 in annual payroll costs.  Among other things, to substantiate his claims, Casillas provided the lender with a fraudulent 2019 tax record.  In reality the company did not exist.
Michael Easley, United States Attorney for the Eastern District of North Carolina, made the announcement after sentencing by        U.S. District Judge James C. Dever III. The United States Secret Service, based in Wilmington, North Carolina, investigated the case.  Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Related court documents and information can be found on the website of the
U.S. District Court for the Eastern District of North Carolina
or on
PACER
by searching for Case No. 7:22-CR-132-D.

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