Release: NC woman went shopping with $150K virus relief loan
Federal prosecutors say a North Carolina woman lied to get nearly $150,000 in coronavirus relief that she later spent on shopping sprees
abcnews.go.com
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abcnews.go.com
Here's the official release:
Clifton was released on bond following today's court appearance. The charge of wire fraud in relation to disaster benefit carries a maximum prison term of 30 years and a $1,000,000 fine. The maximum penalty for fraud in connection with major disaster or emergency benefits is 30 years in prison and a $250,000 fine.
Doesn't sound like she has enough leftover to cover the fine.
Clifton was released on bond following today's court appearance. The charge of wire fraud in relation to disaster benefit carries a maximum prison term of 30 years and a $1,000,000 fine. The maximum penalty for fraud in connection with major disaster or emergency benefits is 30 years in prison and a $250,000 fine.
Doesn't sound like she has enough leftover to cover the fine.
I thought the small business loans didn't need to be paid back? Or did she get something different?
The bigger issue is she lied about her business. It was closed since 2019 and she still applied.
Right, that and her shopping spree are inexcusable. I was mainly addressing the "why did she do that if she had to pay it back" thing.
But it would probably be really difficult for her to meet whatever the requirements were for keeping the money without actually owning a business.
You have to apply to get them forgiven. You have to sign off that everything you say is true. Presumably she was lying. When you lie to the government you usually open yourself up for liability.
For everyone wondering what really screwed her it was the flippant spending. It was lying about a business that was no longer running.
Kinda, need to show that you kept everyone on payroll plus they want records of your business cashflow to see how you were operating last year and for 2019. Recently got mine forgave so if you are honest about it you are good.
Yeah, that's what did it. PPP loans are the ones you're able to get forgiven. This sounds like an EIDL loan looking at the amount she got, which has a few more restrictions that you do have to pay back.
The disaster recovery loans have very generous terms, nearly free money.
Hope she enjoys whatever consequences she gets. All to go on a frivolous shopping spree. What an idiot
It did say she created false documents and considering she actually had a business at one point, I don't doubt she knew what they were supposed to look like and how to make them look convincing
It's probably happened many times over with other business owners as well. They're just not as dumb as this one.
I expect there will be plenty of this that isn't as widely reported, since people will just pocket the money.
Heck, I probably could have done this with my LLC. However, I wouldn't have gone on a spending spree 🤣 🤦‍♂️ .
Meanwhile the already rich are pocketing a ton of this money and just carrying on with their lives.
Meanwhile the already rich are pocketing a ton of this money and just carrying on with their lives.
There seems to be a lot of confusion on the loan.
A PPP loan is a small one covering payroll and some business expenses and can be forgiven.
A EIDL loan, which is what this is, a large loan (which is usually half of your 2019 gross income) with a low interest rate 30 year repayment plan.
A PPP loan is a small one covering payroll and some business expenses and can be forgiven.
A EIDL loan, which is what this is, a large loan (which is usually half of your 2019 gross income) with a low interest rate 30 year repayment plan.
OP
OP
I successfully completed two PPP and applied for the EIDL and it wasn't too vulnerable. While it wasn't perfect, there are numerous checks to ensure the money isn't just getting tossed at personal shit on the back end. She was extra dumb and I mean like REALLY dumb.
Funniest part is she overstated and falsified $350k revenue, which probably showed up in a cursory audit against her tax records. Effectively she set herself up for a huge tax penalty because she probably paid a lot less than that in taxes. She was literally incriminating herself for a different crime with her plan.
You better belief the wraparound of 2020 business tax season will net more of these shitty folks.
