Commerce Township man pleads guilty to COVID-19 pandemic loan fraud
(CBS DETROIT) - A 32-year-old man pleaded guilty to stealing about $850,000 in a COVID-19 pandemic loan fraud scheme.
Ryan Carruthers, of Commerce Township, pleaded guilty to one count of wire fraud, according to the Department of Justice. Officials say Carruthers engaged in a scheme to obtain loans from two relief programs operated by the Small Business Administration.
In April 2020, Carruthers began submitting applications in the names of multiple small businesses he claimed to own and control. Within a year, he submitted 12 applications through the Paycheck Protection Program, according to a press release. He also submitted an application to the Economic Injury Disaster Loan Program.
Approximately $851,963 was taken, which Carruthers used to pay off his home mortgage, purchase a watercraft and afford personal expenses, according to the DOJ.
Although Carruthers claimed that each of his businesses had three to 15 employees, federal officials say they were "shell businesses" that were not in operation.
"Ryan Carruthers stole nearly a million dollars from programs intended to help our community weather an unprecedented national crisis. Every dollar that went to Mr. Carruthers is a dollar that did not go to a small business that needed help during the pandemic," said United States Attorney Ison in a statement. "My office takes pandemic fraud extremely seriously, and we will continue to dedicate resources to bringing those who perpetrated such frauds to justice."
Sentencing is scheduled for Dec. 5.