Fort Myers Couple Sentenced To Federal Prison For $3.4 Million COVID Relief Fraud Scheme

Summary

A press release published 2025-04-11 by the U.S. Attorney's Office for the Middle District of Florida announcing that U.S. District Judge Thomas J. Barber sentenced Timothy Craig Jolloff, 48, and Lisa Ann Jolloff, 58, both of Fort Myers, to eight years and one month and three years in federal prison, respectively, for wire fraud, bank fraud and illegal monetary transactions. The office states that the court ordered $3.4 million in restitution to the SBA and forfeiture of $3.4 million, and that the Jolloffs pleaded guilty on April 24, 2024. According to the indictment and other court documents as described in the release, false EIDL and PPP applications led to eleven EIDLs and eight PPP loans, plus EIDL Advances, totaling approximately $3,403,265. It states that the funds bought pontoon boats, real estate in Fort Myers and Angola, Indiana, vehicles and jewelry.

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Fort Myers, Florida – U.S. District Judge Thomas J. Barber has sentenced Timothy Craig Jolloff (48, Fort Myers) and Lisa Ann Jolloff (58, Fort Myers) to eight years and one month, and three years, respectively, in federal prison for wire fraud, bank fraud and illegal monetary transactions. The Court also ordered the Jolloffs to pay $3.4 million in restitution to the Small Business Administration (SBA) and to forfeit $3.4 million which was the proceeds of the offense. The Jolloffs entered guilty pleas on April 24, 2024.
According to the indictment and other court documents, between April and March 2021, Timothy Jolloff and his wife, Lisa Jolloff, submitted false and fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) loan applications to the SBA, as well as PPP approved lenders. In PPP loan applications, the Jolloffs falsely represented the number of employees and average monthly payroll for the applicant businesses. The Jolloffs also falsely represented and certified that PPP funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments.
In EIDL applications, Timothy Jolloff misrepresented the gross revenue and cost of goods sold for the applicant businesses for which he sought EIDL funds. Timothy Jolloff also misrepresented the number of employees the EIDL applicant businesses had. Moreover, in loan documents signed and submitted by Timothy Jolloff for EIDL loans, he mispresented that EIDL proceeds would be used solely for working capital and to alleviate economic injury.
The Jolloffs’ false and fraudulent representations caused the SBA and PPP lenders to approve and fund eleven EIDLs and eight PPP loans, as well as EIDL Advances, totaling approximately $3,403,265. The Jolloffs then used the funds to purchase three pontoon boats totaling more than $300,000, real estate in Fort Myers, Florida and Angola, Indiana, home furnishings, outdoor kitchens for their homes, a 2019 GMC truck, a 2020 Polaris UTV, as well as jewelry, and two dogs. The Jolloffs also fraudulently used more than $600,000 in EIDL funds to purchase a furniture business in Indiana and a landscaping business in Sarasota, Florida, which had no connection to the businesses for which the Jolloffs obtained COVID relief money.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time-period and uses at least a certain percentage of the loan toward payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
This case was investigated by the United States Secret Service. The case was prosecuted by Chief Assistant United States Attorney Jesus M. Casas.

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