Trucking Company Owners Indicted in Alleged $3 MILLION PPP Fraud Scheme
Atlanta, GA – Two trucking company owners are among those charged in a conspiracy to fraudulently obtain $3 million in Paycheck Protection Program (PPP) loans.
On Thursday, the U.S. Department of Justice (DOJ) announced indictments against six business owners alleged to have conspired to commit bank fraud, make false statements to a financial institution, and money laundering.
Among those charged in the scheme include trucking company owners Travis Crosby, 31, of Wellford, SC, and Keith Maloney Jr., 33, of Port Wentworth, GA.
Crosby is the owner of Faithful Transport Services LLC and Maloney owns KMJ Transport LLC.
According to the 23-page criminal indictment, both men were recruited by Rodericque Thompson, 43, of Atlanta, GA, to apply for fraudulent PPP loans on behalf of their respective businesses.
Prosecutors said Thompson assisted Crosby and Maloney in preparing and submitting PPP loan applications for $300,000 each.
The applications allegedly contained numerous false and misleading statements.
Court documents indicate Crosby and Maloney agreed to pay Thompson a percentage of the loan proceeds.
However, upon further investigation, the loan applications raised suspicion.
According to the indictment, both men claimed to have 16 employees and reported an identical amount ($358,819) in payroll for each quarter of 2019.
In fact, three others also indicted in the scheme claimed the exact same number of employees and payroll amounts as Crosby and Maloney.
Raising even more red flags was that the loan applications were filed in May 2020 less than three weeks apart.
So far, 11 people have been indicted in the $3 million fraud scheme.
Five of those indicted have already pleaded guilty to at least one count of conspiracy to commit wire fraud and making false statements.
To date, authorities say they have recovered close to $1.2 million of the $3 million that was stolen.
Transportation Nation Network will continue to follow the case.