Missouri truck company owner gets 9 years for PPP fraud, other felonies
Christopher Lee Carroll, the Missouri man who set up a trucking company as part of a broader scheme to fraudulently obtain loans under the pandemic-driven Paycheck Protection Plan, has been sentenced to nine years in federal prison.
A jury convicted Carroll in September of three counts of bank fraud, three counts of making false statements to a financial institution, one count of conspiracy to violate the Clean Air Act, 13 violations of the Clean Air Act and two counts of threatening a witness.
Carroll was convicted and sentenced in the U.S. District Court for the Eastern District of Missouri. He was also ordered to pay restitution of $3 million.
Carroll and business partner George Reed owned a timeshare exit company, Square One Group. They submitted their request for a $1.2 million PPP loan, claiming in it that Square One was owned not by Carroll and Reed but by their spouses, according to a recap of the case released by the U.S. attorney's office. As a convicted felon for earlier activities, Carroll would not have been eligible for a PPP loan.
Carroll used the money to set up a trucking company, Whiskey Dix Big Truck Repair LLC. With the company established, the U.S. attorney said, Carroll and Reed applied for loan forgiveness, 'claiming they'd spent the money on payroll and other permitted expenses.'
The pair applied for a second loan of $1.6 million. It was approved and they took $660,000 in what the U.S. attorney referred to as 'owner draws.'
The charges of violating the Clean Air Act came from Carroll's plan to disable emission-control equipment to increase the vehicles' mileage.
'Carroll asked one employee to 'take the fall' for his crimes and told another that he would stop paying for the employee's lawyer if he talked to federal agents, evidence and testimony showed,' according to the U.S. attorney. 'Carroll did stop paying for the lawyer.'
In the sentencing memo, the U.S. attorney called Carroll a 'consummate fraudster.' Previous convictions were for felonious restraint and forcible sodomy.
Unlike Carroll, who went to trial, Reed, 70, pleaded guilty in September 2022 to the charges lodged against him. His sentence at the time was for time served.
More articles from John Kingston
Trucking-backed suit may be arena for dumping Biden independent contractor rule
Manhattan Associates' sudden C-suite change not what it seemed, executives say
Ryder not counting on stronger freight market in '25, so it touts broader trends
The post Missouri truck company owner gets 9 years for PPP fraud, other felonies appeared first on FreightWaves.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
2 hours ago
- CNBC
How to claim your part of TransUnion's $23 million class action settlement
TransUnion, one of the three largest credit bureaus in the U.S., has agreed to a $23 million class action settlement to resolve claims it failed to remove disputed hard inquiries from consumers' reports for nearly 10 years. In February 2025, the U.S. District Court for the Eastern District of Pennsylvania granted preliminary approval for the deal, which could impact more than 485,000 consumers. A final hearing is scheduled for July, after which eligible class members could receive as much as $160 each. Along with Equifax and Experian, TransUnion collects information about consumers' financial behavior and tabulates credit scores used by lenders, businesses and others to determine creditworthiness for loans, credit cards, insurance, employment, leases and other uses.A hard inquiry can lower your credit score, making you ineligible for certain products or preferred interest rates. Originally filed in December 2018, the lawsuit claims that TransUnion failed to investigate or remove certain disputed hard inquiries that appeared on consumers' credit reports between 2016 and 2025. As a result, the plaintiffs alleged, TransUnion violated the Federal Fair Credit Reporting Act and unfairly lowered their credit scores. According to court filings, consumers who challenged questionable inquiries were sent standard "502 Letters," which explained the nature of credit report inquiries and suggested they reach out to the inquirers themselves. The plaintiffs maintain that TransUnion should have contacted the third parties directly and removed the inquiries. TransUnion hasn't admitted any wrongdoing but a representative told CNBC Select that, moving forward, it was instituting changes "regarding consumer challenges to hard inquiries." Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent from $9 to $25 per month, billed annuallyProtects against identity theft, financial fraud, spam calls, online theft, scam websites, viruses and malware. Offers VPN, 3-credit bureau monitoring, password manager and instant credit lock. On Aura's siteFrom $6.67 to $17.99 per month, billed annually on individual plans and $10.00 to $23.99 per month, billed annually on family plansUp to $1 million in insurance for eligible losses from identity theft On Identity Guard's site Credit checks fall into two categories, either soft or hard inquiries: A soft inquiry (or "soft pull') may be triggered if you're prequalified for a credit card or a landlord runs a basic background check. It includes limited information and won't impact your credit score. Financial institutions trigger a hard inquiry, or 'hard pull," when they're making lending decisions, say, about your application for a mortgage, personal loan or credit card. These are more in-depth and single hard pull can ding your score by about five points, according to FICO, , although if you have a shorter credit history or fewer accounts, it might have a more substantial impact. Numerous hard inquiries in a short period can also take a greater monitoring and identity theft protection services keep tabs on changes to your reports, including new credit inquiries and opened accounts and information appearing on the dark web. You can dispute errors and fraud on your report yourself, but many people find the process time-consuming, confusing or intimidating. A credit repair company will reach out to the three credit bureaus on your behalf and challenge any incorrect information. Consumers who disputed a hard inquiry listed on their TransUnion credit report and received a '502 Letter' between December 5, 2016, and January 31, 2025, are eligible class members. Under the terms of the settlement, consumers who received a '502 Letter' are entitled to a minimum cash payment of at least $20 to $30. Class members who experienced certain financial harms as a result of TransUnion's alleged violation can file a claim for damages and a higher payment. The final amount will be based on how many valid claims are received but could be as much as $160. To file a valid higher payment claim, you must attest at least one of the following: Class members do not have to do anything to receive a minimum payout, which will automatically be mailed to the address TransUnion used to send "502 Letters." If your address has changed or you believe you suffered specific financial harm and wish to apply for additional damages, you must complete a claim form on the class action settlement website by June 24, 2025. You may also mail your form to: Norman v Trans Union, LLC c/o Settlement AdministratorPO Box 23489, Jacksonville, FL 32241 The deadline to object to the settlement or request to be excluded is also June 24, 2025. Payments are expected to be distributed within 90 days of the final hearing on July 21, 2025. But appeals and injunctions may delay the process. A hard inquiry is an in-depth review of your credit history for the purposes of determining your creditworthiness. According to FICO, a single hard pull will lower your credit score less than five points. If you have a shorter credit history or fewer accounts, however, it might have a more substantial impact. Numerous hard inquiries in a short period can also take a greater toll. In general, hard inquiries remain on your credit report for two years but stop affecting your credit score after one. You can check your credit report to see when an inquiry was performed. That can help you keep track of your credit score and be on alert for potential fraud if you see an inquiry you don't recognize. Class members willing to accept the $20-$30 settlement do not need to file a claim. If you believe you experienced specific harm and want to apply for additional damages, you must complete a claim form on the class action settlement website by June 24, 2025. Along with Equifax and Experian, TransUnion is one of the three leading credit reporting agency that collects information about consumers' financial behavior to tabulate credit scores used by lenders, businesses and other entities. Information gathered by these agencies is used to determine an individual's creditworthiness and in decisions about their employment, insurance and more. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Yahoo
3 hours ago
- Yahoo
Former Corpus Christi police officer convicted on charge of enticement of a minor
A U.S. district court has convicted a former Corpus Christi Police Department officer of coercing a 15-year-old girl to have sex with him. Daniel Abelardo Verduzco, 32, entered a plea of guilty on May 16 to one count of enticement of a minor, according to records from the U.S. District Court for the Southern District of Texas. U.S. District Judge David S. Morales found Verduzco guilty on May 23 and ordered a presentence investigation report to be prepared by the U.S. Probation Office. Morales accepted the plea on June 9. Verduzco is scheduled to appear for sentencing on Aug. 21. U.S. Department of Homeland Security agents notified the Corpus Christi Police Department that they had arrested Verduzco on Jan. 19 in Nueces County. Police in Tulsa, Oklahoma, began investigating Verduzco on Jan. 8 after a concerned parent told them that she thought her daughter was involved in a relationship with a Corpus Christi police officer. The mother looked at her daughter's Snapchat account and found photo messages between her daughter and a user known as 'Danny' inside of a police cruiser with a computer mount and laptop that revealed sensitive information about police calls and notes about the police calls, the Caller-Times previously reported. Tulsa police found that the girl and the Snapchat user had exchanged more than 3,700 messages, which included photos of the girl's breasts and videos and photos of her in sexually suggestive poses and outfits, according to a criminal complaint filed on Jan. 18 in the U.S. District Court for the Southern District of Texas. The teenager's mother said that at the time she believed 'Danny' to be the same age as her daughter, the complaint showed. However, her daughters confirmed that 'Danny' was a police officer, she said. Verduzco is no longer employed with the city of Corpus Christi, Lt. Eryca Gonzalez of the Corpus Christi Police Department confirmed on June 16. The department previously placed Verduzco on administrative leave after the investigation began in January. Gonzalez said the police department fully cooperated with the investigation, which was led by the U.S. Department of Homeland Security, but did not comment further on the case. (This story was updated to add new information.) More: How can I learn more about sex offenders in my area? Nueces County has a tool for that More: Two individuals charged in crimes involving sex trafficking, solicitation of minors This article originally appeared on Corpus Christi Caller Times: Former Corpus Christi officer convicted of sexually coercing minor
Miami Herald
4 hours ago
- Miami Herald
Baltimore lawyer sues Meta, Google over online ‘squatter house' networks
In his second lawsuit targeting social media giants, Baltimore lawyer and real estate firm co-owner Barry Glazer is suing Meta and Google over social-media-based networks that sell unauthorized access to vacant properties. In the proposed class-action complaint filed last week in U.S. District Court for Maryland, Glazer and his Century 21 Downtown co-owner, Gina Gargeu, say that the proliferation of so-called "squatter" networks on Facebook, Instagram and YouTube "poses a threat to legitimate property owners and commerce." The schemes target homes that are unoccupied while listed for sale, offering keys and tours of illegally accessed properties on social media, where they are sometimes advertised as "squatter houses." The complaint says that the illicit rentals, where "sellers" often change locks on unoccupied properties, increase the real estate companies' liability and maintenance costs. A costly eviction process further deprives them of sales income with extended vacancies, the complaint says. "I can't believe they're getting away with it," Glazer said, noting how "blatantly" illegal the bogus rentals are. "It's going on everywhere." He said he doesn't personally own any homes that were squatted in, though he represents property owners who do. The tech giants have policies that prohibit fraudulent conduct, though their failure to enforce those rules "induced (the real estate company) to believe their properties and listings were not vulnerable to hijacking," the complaint says. "Despite receiving reports, complaints and public attention about the schemes, (Meta and Google) failed to remove or prevent this content." Neither Meta nor Google immediately returned requests for comment Monday morning. Local leaders have vowed to hold those involved in the "squatter house" trend accountable. Although squatting is largely handled as a civil matter, Baltimore prosecutors have said certain aspects of the trend may reach a criminal level, and Mayor Brandon Scott said last month there was an open police investigation regarding certain social media videos. Maryland Gov. Wes Moore said last week that the state was taking "immediate action" on the issue. Glazer, a local lawyer known for his colorful television ads, also sued Meta last month over counterfeit coins being sold on Facebook Marketplace, vowing to hold social media platforms accountable for scams. In that case, Meta is seeking until the end of July to file a formal response to the complaint, according to court records. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
