Missouri Man Convicted for Defrauding PPP Program to Fund Trucking Business

A federal jury has convicted Christopher Carroll, a 54-year-old man from Farmington, Missouri, for fraudulently obtaining nearly $3 million in Paycheck Protection Program (PPP) loans, which he used to establish a trucking business. Carroll was found guilty on multiple charges, including 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, who partially owned Whiskey Dix Big Truck Repair in Bourbon, Missouri, was accused of submitting false information in his PPP loan applications. The jury also found the business itself guilty of 16 violations of the Clean Air Act, according to federal prosecutors.

The U.S. Attorney for the Eastern District of Missouri, Sayler A. Fleming, highlighted the gravity of Carroll’s actions, stating, “He lined his pockets with money that was supposed to save jobs during the COVID-19 pandemic. We will seek a significant prison sentence for this defendant and his company, and any sentence, by law, will include mandatory restitution.”

In April 2020, Carroll and his partner, George Reed, applied for a $1.2 million PPP loan under false pretenses for their timeshare exit company, Square One Group. They claimed that their wives owned the company, a lie intended to obscure Carroll’s status as a felon, which would have disqualified them from receiving the funds. Instead of using the money to pay employees who were out of work, Carroll used the funds to purchase land and trucks to start a trucking business. He and Reed later applied for loan forgiveness, falsely claiming the funds were spent on payroll.

Acting Special Agent in Charge Chris Crocker of the FBI St. Louis Division emphasized the impact of Carroll’s fraudulent actions, saying, “To add insult to injury, Carroll wouldn’t have even qualified for the funds if it weren’t for his employees. We thank the jury for holding Carroll accountable for fleecing the PPP program, which was designed to help people who were out of a job through no fault of their own during the pandemic.”

The fraudulent activity did not stop with the first loan. Carroll and Reed sought a second loan of approximately $1.6 million, from which they withdrew $660,000 in “owner draws.” Additionally, to cut costs on fuel, Carroll ordered the removal of emissions control equipment from the trucks, violating federal environmental regulations.

During the federal investigation, Carroll attempted to obstruct justice by asking an employee to take the blame for the emissions violations and threatening another employee to keep silent.

George Reed, 69, had already pleaded guilty to bank fraud in September 2022. Both Carroll and his company now face significant legal consequences, including mandatory restitution and potential long-term prison sentences.

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