Brooklyn Business Owner Gets 18 Months of Prison for Covid-19 Loan Fraud
The SBA created the Covid-19 EIDL Program to help and provide small businesses with low-interest loans of up to two million dollars to help offset the temporary loss of revenue experienced by many businesses from the Covid-19 pandemic. 26 year-old Brooklyn resident Jeremy Trapp applied for and received a $42,400.00 loan (plus a $10,000.00 advance) to pay employees of what he claimed was a car wash business located at his Brooklyn residence.
In his application, Jeremy alleged he was the sole proprietor of the car wash business, that the business opened on April 4, 2018, had 10 employees, and had a gross revenue of$150,000.00 for the 12 months prior to the Covid-19 pandemic. Subsequent investigation revealed, however, that a car wash business was not located, nor had ever been located, at Jeremy's residence, and the statements Jeremy made in support of his loan application were entirely fictitious and fraudulent. Jeremy goes to prison.
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