Springfield Business Owner Indicted for Covid Fraud and Money Laundering
Summary
Jason L. Hemingway, 47, a Springfield, Mo. business owner, was indicted by a federal grand jury on two counts each of bank fraud and making a false statement on a loan application and three counts of money laundering over $316,062 in Paycheck Protection Program loans. According to the indictment, Hemingway applied on Feb. 9, 2021 for a PPP loan for Principal Transfer Group, LLC in another individual's name, claiming an average monthly payroll of $63,212 and 25 employees, and received $158,031. A second application on April 8, 2021 claimed the same payroll and eight employees and brought another $158,031. The indictment alleges transfers of $11,000 to 417 Print Shop, LLC, $11,000 to a personal account and $13,851.16 to a Robinhood account. The release states that the charges are accusations, not evidence of guilt.
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Full text
SPRINGFIELD, Mo. – A Springfield business owner was indicted by a federal grand jury for fraudulently obtaining $316,062 in Paycheck Protection Program (PPP) loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and for laundering over $35,000 of PPP funds. Jason L. Hemingway, 47, was charged with two counts each of bank fraud and making a false statement on a loan application, and three counts of money laundering. According to the indictment, Hemingway applied for a PPP loan for his business, Principal Transfer Group, LLC on Feb. 9, 2021. The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments. On his electronically submitted loan application Hemingway claimed that another individual was the owner of his business, Principal Transfer Group, LLC, and stated that the business had an average monthly payroll of $63,212 and employed 25 people, all of which were false statements. Hemingway signed the application in the name of the individual he claimed was the president and owner. Hemingway received $158,031 in PPP proceeds. On April 8, 2021, Hemingway applied for a second PPP loan on behalf of Principal Transfer Group, LLC. On that application, again submitted under another individual’s name, Hemingway certified that he had received a previous PPP loan and that he had used the full loan amount for eligible expenses only, which was a false statement. He again claimed that another individual was the president and owner, that the business had an average monthly payroll of $63,212 and employed eight people, all of which were false statements. Hemingway signed the application in the name of the individual he claimed was the president and owner and received another $158,031 in PPP loan proceeds. The indictment alleges that Hemingway used the PPP proceeds for non-approved purposes, including for his personal benefit. According to the indictment, Hemingway transferred $11,000 of the PPP funds into the bank account for another business he owned, 417 Print Shop, LLC, an additional $11,000 in PPP funds into his personal bank account, and $13,851.16 of PPP funds to his Robinhood account. Robinhood is a financial services company that allows users to invest and trade in stocks and cryptocurrencies. The indictment also contains a forfeiture allegation, which would require Hemingway to forfeit to the government any property derived from the alleged fraud scheme, including a money judgment of at least $316,062, and an additional $35,851.16 money judgment for proceeds derived from the alleged money laundering scheme. The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence. This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the IRS-Criminal Investigation and the Federal Bureau of Investigation.
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