FRANKLIN, Tenn. (WKRN) – A Franklin man has pleaded guilty to COVID-19 relief fraud among other charges.
A press release from the United States Attorney’s Office said 40-year-old John Paul Dillon pleaded guilty to one count of bank fraud, one count of wire fraud, and one count of money-laundering related to fraudulent loan applications submitted in connection with the Payroll Protection Program (PPP) and the Economic Injury Disaster Loan Program.
Dillon reportedly lied about how he and others earned hundreds of thousands of dollars in income from a “ride-share business” and also lied about operating a company which paid over $500,000 in wages to employees.
In addition to pandemic-related charges, Dillon pleaded guilty to one count of band fraud stemming from a fraudulent loan application he submitted to finance a $470,000 mortgage. Dillion also reportedly submitted a fake bank statement in support of his loan application, according to officials.
Through his fraudulent actions, Dillion received nearly $1 million.
Authorities said in addition to agreeing to the entry of money judgments against him, Dillion has also agreed to forfeit his home, two late-model vehicles, and a pontoon boat.
He faces up to 30 years in prison and a fine of up to $1 million on each of the bank fraud counts, up to 20 years in prison and a fine of up to $250,000 on the wire fraud count, and up to 10 years in prison and a fine of up to $250,000 on the money-laundering count.
Sentencing is set for March 4, 2024.
Anyone with information on possible fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or by clicking here.