U.S. Department of Labor OIG, Cincinnati man sentenced to prison for submitting false PPP loan application (USAO SD-OH 03/06/2024) (2024-03-07)
Summary
Press release from the U.S. Attorney's Office for the Southern District of Ohio, dated March 6, 2024, announcing that Kelton McClarrin of Cincinnati was sentenced to 18 months in prison for wire fraud in a scheme to obtain a Covid relief loan. According to court documents, McClarrin applied on May 16, 2021, falsely claiming to own a business established in 2019 with a gross income of $100,000, submitted a forged bank statement, and used a halfway house address as the business address. The release states McClarrin was incarcerated until Nov. 17, 2020, received nearly $21,000 from the Paycheck Protection Program, and in April 2022 applied for loan forgiveness claiming 20 employees. U.S. District Judge Douglas R. Cole imposed the sentence on March 5.
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“U.S. Department of Labor OIG, Cincinnati man sentenced to prison for submitting false PPP loan application (USAO SD-OH 03/06/2024) (2024-03-07).”
Original at www.oig.dol.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-labor-oig-cincinnati-man-sentenced-to-prison-for-sub-e6d8f03cc7/
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PRESS RELEASE
Cincinnati man sentenced to prison
for submitting false PPP loan
application
Wednesday, March 6, 2024
For Immediate Release
U.S. Attorney's Office, Southern District of Ohio
Defendant claimed to run a business during same timeframe he
was incarcerated, used halfway house as business address
CINCINNATI – A Cincinnati man was sentenced in U.S. District Court to 18 months in
prison for committing wire fraud as part of a scheme to fraudulently obtain a Covid
relief loan.
Kelton McClarrin, 33, received nearly $21,000 from the Paycheck Protection Program
(PPP) under false pretenses and used the money for personal expenditures including jail
commissary services, CashApp, Grubhub, DoorDash, Facebook purchases and hotels.
According to court documents, McClarrin applied for a Covid relief loan on May 16,
2021, falsely claiming in the application that he was the sole owner of a business named
“Kelton McClarrin.” McClarrin claimed his business was established in 2019 and had a
gross income of $100,000 for that year. McClarrin also submitted a forged bank
statement in support of the loan application.
McClarrin was sentenced to two years in prison in a Hamilton County case on May 7,
2019. He remained incarcerated until Nov. 17, 2020, when he was paroled to a halfway
house. He used the address of the halfway house as his business address on the loan
application.
In April 2022, McClarrin applied for loan forgiveness for the $21,000 PPP loan. He stated
on the application forms that he had 20 employees and had spent $20,000 of the loan
on payroll costs.
McClarrin was arrested in August 2023 and pleaded guilty in October 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced
the sentence imposed on March 5 by U.S. District Judge Douglas R. Cole. The case was
investigated by the Social Security’s Office of Inspector General with assistance from the
U.S. Department of Labor Office of Inspector General, the U.S. Marshals, and the Ohio
Department of Rehabilitation and Corrections. Special Assistant United States Attorney
Timothy Landry is representing the United States in this case.
###
Updated March 6, 2024
Topics
CORONAVIRUS
FINANCIAL FRAUD
Component
USAO - Ohio, Southern
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- Original
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