A federal jury in Atlanta today found a South Carolina man guilty of fraudulently using a $300,000 loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to have received.
According to court documents and evidence presented at the hearing, Travis Crosby, 32, of Wellford, conspired to file a PPP loan application on behalf of Crosby’s company, Faithful Transport Services LLC (Faithful Transport). The loan application incorrectly increased Faithful Transport’s headcount and average monthly payroll, resulting in a larger PPP loan than Crosby could legitimately obtain. Crosby and a co-conspirator also arranged for a forged tax document to be produced to support the misstatements in the loan application. Crosby then conducted a series of sham transactions with various individuals to make it appear that he was paying them their paychecks for working at Faithful Transport, when in reality these individuals returned the vast majority of the funds to Crosby.
Crosby was convicted of conspiracy to commit bank fraud, bank fraud, false statement to a bank and money laundering. He is scheduled to be sentenced on January 10, 2023 and faces a maximum sentence of 30 years in prison for conspiracy to commit bank fraud, bank fraud and false statement to a bank and 20 years for money laundering. A federal district court judge will determine the sentence after considering US sentencing guidelines and other legal factors.
Crosby is the 11th defendant convicted under the Justice Department’s indictment of a $3 million Atlanta-based PPP fraud ring. So far, 10 other members of the system were charged by the Fraud Division and the US Attorney’s Office for the Northern District of Georgia. All other defendants pleaded guilty before trial. To date, authorities have recovered about $1.2 million of the stolen money.