Over $3 million in COVID-era loans went to Michigan business that didn't qualify, authorities claim

CBS News

6 days ago

A Southeast Michigan man has been federally indicted on charges relating to fraudulent loan applications submitted to COVID-era business assistance programs.
Over $3 million was received on behalf of a business called Priceless Preservations Construction, the court records said.
Jabari Kadar Long, 45, of Beverly Hills is charged with one count of conspiracy to commit wire fraud, one count of wire fraud affecting a financial institution, and one count of money laundering arising out of his participation in the scheme, the U.S. Attorney's Office for the Eastern District of Michigan reported.
The indictment claims that Long worked with co-conspirators to illegally obtain money through ineligible business loan applications to the Paycheck Protection Program and the Economic Injury Disaster Loans program.
Congress created the PPP program in early 2020 to provide emergency assistance to businesses that faced financial challenges at the outbreak of the COVID-19 pandemic. Eligible businesses could apply for loans guaranteed by the Small Business Administration, and additional requirements applied to those seeking to have the loans forgiven at a later date.
In the case that was the focus of this investigation, a loan application claimed that Priceless Preservations had 50 employees and a payroll of $875,000. But as the district attorney's report explained, Priceless Preservations "had few, if any, employees and little to no payroll expenses."
Homeland Security Investigations and the Internal Revenue Service worked on the investigation.