Levant company owner pleads guilty to PPP loan fraud, faces up to 20 years in prison
File photo
Craig C. Franck formerly ran CCF Acoustics LLC and CCF Acoustical Systems and provided false information about the companies when applying for pandemic relief funds in 2020 and 2021.
A Levant businessman pleaded guilty Tuesday in Bangor federal court to wire fraud and money laundering charges that stemmed from his handling of pandemic relief funds.
Craig C. Franck, 40, formerly owned CCF Acoustics LLC and CCF Acoustical Systems and provided false information about the companies when applying for Economic Injury Disaster Loan and Paycheck Protection Program funds in 2020 and 2021, U.S. Attorney Darcie N. McElwee said.
Neither company was in business, generated income, or had employees in 2020 or 2021.
In the summer of 2020, however, Franck received $177,400 in EIDL funds after submitting two fraudulent loan applications to the U.S. Small Business Administration. His applications included false claims about the companies and how the funds would be used, according to court documents.
In March 2021, Franck received a $145,060 PPP loan after submitting a fraudulent application to a private lender and providing false tax and bank account documents, the filings said.
Illegally using the funds from both federal programs, Franck purchased two pickup trucks, bought personal items, and paid legal fees for his defense as part of another, unrelated fraud case in Florida.
Franck now faces penalties of up to 20 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Department of Homeland Security officials investigated the case.
McElwee said in a news release, “My office and our federal law enforcement partners will continue the important work of bringing to justice those who defrauded the economic relief programs made available under the CARES Act. These funds were meant to keep small businesses running during the COVID-19 pandemic. We will hold accountable those who sought to take advantage of a national emergency simply to line their own pockets.”
Most Recent
Most Recent
0 Comments